A native asset refers to a digital token that is built directly into a specific blockchain. It is an inherent part of that blockchain’s protocol and is created, managed, and transferred using the blockchain’s underlying rules.An example is Bitcoin, which is the native asset of the Bitcoin blockchain. Similarly, Ether is the native asset of the Ethereum blockchain. Each of these assets has its unique features and purposes, often facilitating transactions and smart contracts on their respective platforms.Native assets can serve various functions, including being a medium of exchange, a store of value, or a unit of account. They can also play a role in network governance, allowing holders to vote on protocol changes and improvements.In contrast, other types of tokens, like ERC-20 tokens on Ethereum, exist on top of the blockchain but are not integral to its core functioning. Understanding the distinction is essential for navigating digital assets and their ecosystems effectively.