Crypto-currency vs Assets

+2 votes
Hello Multichain team,

While going through your Q&A Forum, I found that at multiple places you mention that Multichain is not really designed for cryptocurrency (even if it is a fork of Bitcoin) but you also mention that you can issue thousands of assets.

So, are not crptocurrencies a type of asset ? What is the main difference between asset and cryptocurrency ?
Also, is it necessary we should have a strong PoW  for a cryptocurrency.

I am little bit confused with these terms. Could you please explain what rationale mulitchain have, like how does mulitchain team views "Cryptocurrency" and "Asset" differently ?

Thank You
asked May 3, 2017 by Varun

1 Answer

+2 votes
Best answer
In our usage, a "cryptocurrency" means the native currency of a blockchain which is open and publicly accessible and derives its value from its status as a new type of money that anyone in the world can receive, send, and earn through participation in the blockchain. Bitcoin and Ether are examples. Permissioned blockchains, like the type MultiChain is generally used for, don't enable cryptocurrencies under this definition.

An "asset" is a token which is issued onto a blockchain, and generally represents something which does not derive its value directly from the chain. For example a bank might issue an asset onto a blockchain to represent some cash it is holding.
answered May 3, 2017 by MultiChain