Native Digital Assets

Definition ∞ Native digital assets are cryptocurrencies or tokens that are an intrinsic component of a specific blockchain network, serving essential functions within that ecosystem. They are typically used for transaction fees, staking, governance, or as the primary medium of exchange. These assets derive their value and utility directly from the underlying protocol. Examples include Bitcoin on the Bitcoin network or Ether on Ethereum.
Context ∞ Native digital assets are central to almost all cryptocurrency news, as their performance and utility often reflect the health and adoption of their respective blockchains. Reports frequently discuss the price movements, use cases, and protocol upgrades related to these assets. Understanding the role of native digital assets is fundamental to comprehending the economic models and operational mechanisms of various blockchain platforms.