What Is an On-Ledger Currency?
An on-ledger currency is a type of digital asset that exists and can be exchanged within the confines of a blockchain network. It is also known as an “on-chain” or “native” token, since it lives directly on the ledger itself. On-ledger currencies are typically used to facilitate transactions between users in the network, such as buying and selling goods or services. They may also be used for other purposes such as voting rights, rewards programs, loyalty points, and more.
On-ledger currencies differ from off-ledger assets like Bitcoin because they exist solely within their own blockchain networks rather than being traded across multiple platforms. This means that all transactions involving these tokens must take place within the same system; there is no way to transfer them outside of it without first converting them into another form of cryptocurrency or fiat money. As a result, on-ledger currencies tend to have higher levels of security due to their limited exposure compared with off-chain assets which can be vulnerable to external threats if not properly secured.