Native currency related queries

+1 vote

Hello team
 I would like to know about the native currency in details.
 Mainly I have doubts about the following topics:
 1) Why should we use native currency for rewards instead of assets?
 2) How is the native currency useful to the miner, I mean where the miner can use the native currency they received by mined transactions?
 3) Is the native currency transferable as the miner can transfer this amount of native currency to another wallet address / node address?
Could you please provide guideline.

asked Mar 17, 2020 by Nikunj Dhameliya

1 Answer

0 votes
Best answer
1) The purpose of a native currency is to: (a) allow some cost to be associated with sending transactions, based on their size, and (b) allow the block builders to be rewarded for their role in the system. If your blockchain's primary purpose is to represent asset movements and you do not need either of these things, then you should not have a native currency.

2) The miner can only use the native currency within the system itself, it does not have any external value unless there is a community of users that decides to give it that value.

3) Yes, the native currency can be transferred between addresses just like any asset.
answered Mar 18, 2020 by MultiChain
selected Apr 1, 2020 by Nikunj Dhameliya