# What is BDAG? BDAG is the native cryptocurrency of the BlockDAG ecosystem, serving as the foundational asset for transactions, smart contract execution, and network security. It plays a critical role in facilitating decentralized applications *(dApps)*, securing the network through mining incentives, and enabling seamless peer-to-peer value transfers. As a digital asset, BDAG is used to pay for computational resources, ensuring that transactions and smart contracts are executed efficiently within the BlockDAG framework. Unlike traditional **Proof-of-Stake *****(PoS)*** networks, BlockDAG operates on a **Proof-of-Work *****(PoW)*** consensus mechanism, where miners validate transactions and secure the network by solving complex cryptographic puzzles. This ensures decentralization, immutability, and resistance to censorship. BDAG also functions as a store of value and a medium of exchange, allowing users to participate in the ecosystem without relying on intermediaries. Additionally, BDAG fuels the smart contract ecosystem by covering gas fees for contract execution and interactions with decentralized applications. Its integration with the broader blockchain space makes BDAG a crucial asset for enabling scalable, secure, and transparent blockchain solutions within the BlockDAG network. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.blockdagnetwork.io/get-started/what-is-bdag.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.