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Let $A$ be a finite-dimensional basic algebra over an algebraically closed field and a hereditary ring. The radicals of its indecomposable projectives are projective and satisfy $J{P}_i\cong {⨁}_j{P}_j^{a_{ij}}$, where $a_{ij}$ are the Ext quiver arrow multiplicities. Hence $\dim P_i=1+{\sum }_j{a}_{ij}\dim P_j$, forcing strict dimension decrease along arrows and therefore acyclicity. Lifting an arrow basis in $J/J^2$ gives a surjective path algebra homomorphism $kQ\to A$. The number of paths starting at $i$ satisfies the same dimension recursion. Equality of total dimensions proves the homomorphism is an isomorphism. Sums of vertex idempotents over connected components are precisely the primitive central idempotents, so components give the blocks.

For a finite-dimensional associative algebra over an algebraically closed field, the Ext quiver has a vertex for each simple module isomorphism class and $a_{ij}$ arrows $i\to j$. For a basic algebra with $P_i=A{e}_i$, applying ${\mathrm{Hom}}_A(-,S_j)$ to the projective-cover sequence gives $a_{ij}=\dim e_j(J/J^2)e_i$. Our path algebra convention multiplies consecutive arrows $\alpha :i\to j$, $\beta :j\to l$ as $\beta \alpha$, making left modules have arrow maps $V_i\to V_j$. The orientation convention must be stated when comparing other definitions.

For a finite-dimensional algebra over an algebraically closed field, basic algebra means $A/J(A)\cong k^n$, so its simple modules are one-dimensional and occur once in the semisimple quotient of the regular module. A hereditary ring has every submodule of a projective module projective; equivalently its global dimension is at most one.

Choose representatives $S_1,\dots ,S_n$ of the simple modules. Our Ext quiver convention gives one vertex $i$ for $S_i$ andWith primitive orthogonal idempotents $e_i$, put $P_i=A{e}_i$ and $J=J(A)$. Applying ${\mathrm{Hom}}_A(-,S_j)$ to $0\to J{P}_i\to P_i\to S_i\to 0$ givesThe restriction map from $\mathrm{Hom}(P_i,S_j)$ is zero since every map to a simple kills $J{P}_i$, and $P_i$ is projective. Thus the arrow multiplicity is $\dim e_j(J/J^2)e_i$. This specifies the orientation rather than silently replacing the quiver by its opposite.

Because $A$ is hereditary, $J{P}_i$ is projective. Its semisimple top has $a_{ij}$ copies of $S_j$, where $a_{ij}$ is the arrow multiplicity. Its projective cover therefore supplies an epimorphismThis splits by projectivity of $J{P}_i$. Its kernel is a summand contained in the radical of the source; projection onto that summand and Nakayama lemma force the kernel to be zero. HenceEvery arrow $i\to j$ forces $\dim P_i>\dim P_j$, so $Q$ has no directed cycles.

Choose lifts in $e_{j}J{e}_i$ of bases of the arrow spaces. Send the vertices and arrows of the path algebra to these idempotents and lifts, multiplying paths in the order $\beta \alpha$ for consecutive arrows $\alpha :i\to j$, $\beta :j\to l$. This defines an algebra homomorphism $kQ\to A$. It is surjective: vertices span $A/J$, arrows span $J/J^2$, and products show that paths of length $r$ span $J^r/J^{r+1}$. Nilpotence of $J$ then gives all of $A$.

Let $N_i$ be the number of directed paths starting at $i$, including the length-zero path. Acyclicity gives the same recursion $N_i=1+{\sum }_j{a}_{ij}{N}_j$, with value one at a sink. Induction from sinks gives $N_i=\dim P_i$. ThereforeThe surjective homomorphism is an isomorphism. This proves the basic hereditary algebra path-algebra theorem:

For each connected component $C$ of the underlying unoriented graph, $e_C={\sum }_{i\in C}{e}_i$ is a central idempotent. Paths never connect distinct components, so $kQ={⨁}_C{e}_{C}kQ$ as a direct sum of two-sided ideals. To prove each is a block, let $z$ be any central idempotent. Modulo the arrow ideal it has coordinates $c_i\in \{0,1\}$. Commuting $z$ with an arrow $i\to j$ and reducing modulo the square of that ideal gives $c_i=c_j$. Thus these coordinates are constant on each component. If they are zero on a component, the restriction of $z$ there is a nilpotent idempotent, hence zero; if they are one, apply that argument to $1-z$. Consequently