Native Assets

Definition ∞ Native assets are the primary cryptocurrencies or tokens inherent to a specific blockchain network. For instance, Ether (ETH) is the native asset of the Ethereum blockchain, used for transaction fees and network security. These assets are integral to the functioning and economic model of their respective ecosystems. Their utility extends beyond simple exchange, often playing a role in governance and staking. Context ∞ The role and utility of native assets are frequently debated in discussions about blockchain scalability, security, and economic sustainability. Their value proposition and integration within decentralized applications are key considerations for developers and investors. Changes in the demand or utility of native assets can significantly impact a network’s overall performance and adoption.