Native Asset

Definition ∞ A native asset is the primary cryptocurrency or token that a specific blockchain protocol uses for its internal operations and economic incentives. For instance, Ether (ETH) is the native asset of the Ethereum network, used for gas fees and staking. These assets are integral to the functioning and security of their respective blockchains. Context ∞ The performance and utility of native assets are central to news concerning blockchain networks and their ecosystems. Discussions often focus on tokenomics, supply dynamics, and the role of these assets in securing the network through consensus mechanisms like proof-of-stake. Understanding the specific functions of a native asset is key to interpreting its value proposition and market behavior.