A native asset that is the primary digital coin of a specific blockchain or network. Native tokens are any kind of tokens created on a blockchain. By nature, it is perceived to be a blockchain’s inherent digital currency or token. The purpose or main function of tokens vary according to its specific nature. For example, in the case of bitcoin, it is designed to serve as a cryptocurrency, and its native symbol is BTC. As for Ethereum, its native crypto is known as ether (ETH), which is created to operate on its own blockchain. Every independent blockchain issues and uses its own native crypto/ native token. It constitutes the currency used for compensation of miners for adding blocks to the blockchain, among others.

A native token is the primary digital currency of a certain blockchain, and it helps the blockchain’s seamlessly operate. Native tokens facilitate transactions and are used as a means of payment for transaction fees. These tokens are also used to reward miners or validators who control and collectively run the blockchain. As opposed to non-native tokens, native tokens are integral to the core functions and operability of a network. In addition to its own tokens, a network may host non-native cryptocurrencies along with nonfungible tokens (NFTs) and many other smart contract-based tokens.

Native tokens help operate multiple applications running on their respective blockchains. These tokens are exchanged in everyday transactions and also as currency for payment of smart contract implementation. Network participants also receive native tokens for their roles in validating and secure the blockchain. In the domain of decentralized applications (dApps), native tokens represent the primary currency for transactions, governance (governance tokens), and granting rights and privileged for specific features. In DeFi, native tokens allow participants to lend and borrow, buy and sell without third-parties or intermediaries.

Native tokens are also called protocol tokens, intrinsic tokens or built-in tokens.