A. Guided by classical concepts, we de ne the notion of ends of an iterated function system and prove that the number of ends is an upper bound for the number of nondegenerate components of its attractor. e remaining isolated points are then linked to idempotent maps. A commutative diagram illustrates the natural relationships between the innite walks in a semigroup and components of an attractor in more detail. We show in particular that, if an iterated function system is one-ended, the associated attractor is connected, and ask whether every connected attractor (fractal) conversely admits a one-ended system.. I e main aim of the current article is to o er a conceptually new treatment to the study of a general iterated function system (IFS) in which one has no a priori information concerning the attractor. We describe how purely algebraic properties of iterated function systems can anticipate the topological structure of the corresponding attractor. Our method convolves four natural viewpoints: algebraic, geometric, asymptotic, and topological. Algebraically, the semigroup of an IFS, which consists of all countably many compositions of the functions in the system (most notably the idempotent elements), carries a surprising amount of information about the attractor. e arguments are basically geometric in nature. In nite walks, which reside in the intersection of algebra and geometry, play an important role. e asymptotic point of view is embodied by the classical concept of ends. Topologically, we relate components of the attractor and especially the isolated points (the degenerate components) to the algebraic and asymptotic properties of the system. Previous literature has described the attractor of an IFS by detailed analysis of the involved maps. For example [Hat ], [KL ], and more recently, [AT ], or [LT ] require a minute understanding of the action of the IFS on the attractor. In consonance with related elds including geometric group theory and dynamical systems our ambition is to investigate the attractor by examining the relations in the system only on a formal, algebraic level.Accordingly, we obtain an asymptotic decomposition of the Cayley graph in eorem . is decomposition yields a bound on the number of components of the attractor by the number of ends of the IFS, and identi es isolated