What is the difference between a central bank and commercial banks?

Central banks are government institutions that control a country's money supply and interest rates, aiming to maintain economic stability. They don't serve regular customers. Commercial banks are private or public institutions that take deposits from individuals and businesses, then lend that money out for profit. Central banks often regulate commercial banks and act as their bank. In crypto, this traditional banking structure doesn't apply—decentralized networks replace central banks' functions, while exchanges function similarly to commercial banks by holding customer funds. Understanding these differences helps explain why cryptocurrencies were created as alternatives to traditional financial systems.