How do federations and spaces differ?

Unlike a federation that enables Fedians to store funds and transact by providing an associated wallet, a space is a social area in the Fedi app that houses related chat groups and suggested mini apps – it does not include the ability to send, receive, or hold funds.

If federations are akin to banks, spaces can be thought of as town squares. You can belong to as many federations and spaces in Fedi as you'd like, mixing and matching them to suit your needs – connect with friends in spaces, and make payments through federation wallets.