LeoGlossary: Resource Credits (RC)
Accounts acquire RC by getting the $HIVE:$0.36 coin and staking it through a process called "powering up". The converts the $HIVE:$0.36 into what is known as Hive Power (HP). HP translates into the amount of Resource Credits the account has.
Some of the activities that can be performed:
- Posting an article or comment
- Voting on content
- Governance voting
- Transfer of $HIVE:$0.36 or the stablecoin, HBD
- Delegation of HP
When a user lack the RC to conduct a transaction, he or she can buy more $HIVE:$0.36 and power it up or simply wait. Resource Credits replenish at a rate of 20% per day. Hence, exhausted RC will go from zero to 100% in 5 days.
The RC for each activity will vary both by the day and the activity itself. The ability to interact with the blockchain is based upon resources available. This is dependent upon:
- blockchain size
- compute time
- state size
As resources available go down, the price to transact goes up. The reverse is also true.
Resource Credits are what allows Hive to operate without any transaction fees. Unlike other blockchains such as Ethereum, where users pay based upon each transaction, Hive eliminates this by simply having enough RC. If the accounts does, either through owned or delegated HP, transactions are processed.
It is the Resource Credit system that turns $HIVE:$0.36 into an access token. To access the blockchain and write to the database, one needs to have enough $HIVE:$0.36 staked. Without that, there is no way to access the blockchain.
The price of $HIVE:$0.36 on the open market should see buy demand. Also, as more is locked up, the circulating supply could dwindle. There is a 13 week power down period once the coins are staked.
Resource Credits also help to quantify how valuable the digital real estate on the blockchain is. If the cost of activities due to RC skyrockets due to the number of transactions, then it is realized that the valuation of the entire digital landscape is higher.
Posted Using LeoFinance Beta