On which basis do protein and peptide are divided? I mean which factors differentiate them?
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In terms of structure: both are composed of amino acids.
A peptide is when at least two amino acid are linked together. A protein is composed of multiple amino acids and have a secondary, tertiary and even quaternary structure.
In terms of function: larger molecules have more complex functions.
Peptides can act as a intracellular or extracellular ligands which will activate a signal.
Proteins have a large array of functions (enzymatic, structural, receptors etc)
This article explains in more details the differences in proteins structure and functions:https://en.wikibooks.org/wiki/Structural_Biochemistry/Proteins