Natural...rocks are made of a lot of different compounds, materials...different or varying densities, and over the millions and millions of years the softer stuff eventually erodes, washes, wears away...I've seen rocks with perfectly round or square holes that I would swear were man-formed but the quartz deposits wore away leaving the depressions, more prominent in moving water...streams, creeks etc...very cool piece though, definitely a conversation piece...ddf