> For the complete documentation index, see [llms.txt](https://tne.gitbook.io/tne-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tne.gitbook.io/tne-docs/intro/currencies-key-concepts.md).

# Currencies Key Concepts

### Key Terms

#### 1. **Currency**

A unit of exchange used to facilitate transactions in the Minecraft server. Currencies can be virtual, item-based, or experience-based.

#### 2. **Denomination**

Denominations are subdivisions of a currency, representing specific values of that currency. For example, in the "USD" currency:

* A "Dollar" is the major denomination.
* A "Cent" is the minor denomination.

Each denomination must be defined in a separate YAML file within the folder matching the currency's Identifier.

#### 3. **Item-Based Currency**

An item-based currency uses Minecraft items to represent monetary units. For example, gold nuggets or custom items with specific textures may act as physical currency in the game.

#### 4. **Experience-Based Currency**

An experience-based currency uses a player's experience points as the currency. Transactions add or deduct experience points directly from the player's total.

#### 5. **Virtual Currency**

A virtual currency exists only as data tracked by the server. It is not tied to any physical item or experience points but is used for in-game transactions such as shops or trading.

***

### Folder Structure and Terms

#### Folder Structure

* **Main Currency File**: The primary YAML file defining the overall currency configuration, located directly in the `currencies` folder.
* **Denomination Folder**: A folder named after the currency's Identifier, containing YAML files for each denomination.

#### Example:

For the currency "USD":

```
- currency/
  - USD/
    - one.yml    # Denomination file for "One"
    - penny.yml  # Denomination file for "Penny"
- USD.yml         # Main configuration file for "USD"
```

***

#### Notes

* The Identifier in the main currency file must match the folder name for denominations.


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