1. You start with Native Collagen (raw hides, bones, scales).
2. You apply heat and water (partial hydrolysis) to get Gelatin. Gelatin is great for making gummy bears or capsules because it forms a thick gel when it cools.
3. You apply specific enzymes (full hydrolysis) to that gelatin, and you finally get Collagen Peptides. Peptides will never gel up, no matter how cold the liquid gets.
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