What are native closed network tokens?

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Native closed network tokens are digital assets that are used specifically within a closed network, such as a private company or organization, for payment transactions. These tokens are often created and issued by the organization itself and are not intended to be used or traded outside of the closed network.

In a closed network, native tokens serve as a means of exchange between participants. They can be used to facilitate payments for goods and services within the network, as well as to transfer value between individuals or entities within the network.

Native closed network tokens typically operate on a blockchain or other distributed ledger technology, which allows for the secure and transparent recording of transactions. This can help to reduce fraud and improve the efficiency of payment transactions within the closed network.

Some examples of closed network tokens include company-specific loyalty points, employee benefits programs, and tokens used within a specific industry or sector. These tokens are often designed to be used in conjunction with traditional currency and may be pegged to a specific fiat currency to maintain their value.

It's important to note that native closed network tokens are different from publicly traded cryptocurrencies, which are designed to be used and traded on open, decentralized networks. Native closed network tokens are typically only accessible and usable within the specific closed network for which they were created.