The path algebra is the -vector space with basis all directed paths, including the length-zero path at each vertex. Extend path composition bilinearly, declaring the product zero when the paths cannot be composed. We use the left-module convention: means first traverse , then ; for an arrow , .
The constant paths are mutually orthogonal idempotents. For any path ,
Consequently, for the finite vertex set used here,
It acts as an identity on every basis path, hence on the entire path algebra. Finiteness of the vertex set is what makes this a genuine element of the algebra; an infinite-vertex path algebra instead has finite vertex sums as local units.

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