Resource Credits

This is the first of a series I want to write to explain one of the many aspects of Hive for new members of the community. I invite others to write similar articles and I can post them here with the author being beneficiary.

Today’s topic is resource credits, which can be thought of as the invisible gas of Hive. You use it without knowing it, and because the Blockchains automatically fills your tank you don’t even know your using it unless you manage to use it faster then it gets filled up. Of course that depends on the size of your gas tank. And the more Hive you Power_Up as HivePower, the bigger your tank. So people with more than a few hundred HivePower probably never run out of gas. I think it’s a good time to discuss resource credits because Splinterlands just surpassed the 300,000 new accounts mark recently!

The Name Resource Credits and it’s formal definition

This term is defined by it’s creators, the software developers. In the post from two years ago. Their definition: Resource Credits are non-transferable credits given to each account based on how much Hive Power it has, which get “spent” whenever a user transacts with the Hive blockchain.

So what function doe this new entity called Resource Credits perform on the Hive Platform?

They are a form of currency you spend to enact or perform transactions on the platform.

What are Transactions:

They are votes, comments, transfers and power ups.
You pay or expend Resource Credits when you perform transactions or interact with the Hive platform. Each transaction has a specific cost in Resource Credits, if you have enough resource credits to cover the cost, you can perform the transaction. If you don’t have enough resource credits you get an error message telling you that you are unable to perform the transaction or interaction. You should also be aware that the cost of transactions varies depending on factors that effect blockchain perform and the available supply of resource credits.

It’s like the car you drive, it’s an under the hood activity.

Although transactions on Hive are always described as Fast and Free, that’s only a surface look and the majority of users don’t know that you actually utilize something called Resource Credits to carry out transactions on the Hive blockchain. These are transactions and they require Resource Credits, which are generated daily by HivePower.
But it’s something that happens “below the surface” or “under the hood” so you don’t need to know or understand it, until you run out and can’t post or you invite someone here and create an account, but forget to give them some Hive and have them “power it up” to Hive Power.

So bloggers need it to blog and Similarly for games, the new player need it to play. can be delegated a small amount of Hive Power allowing them to play. I believe Splinterlands gives new players a small delegation so they can play matches and trade/buy cards. These are transactions and they require Resource Credits, which are generated daily by Hive Power.

Other useful information from the GitHub article on Resource Credits:

This information below restates some of the information above in slightly different ways, which might be useful to some, but a little opaque to others. So I provided the above normal English translation.

The RC bandwidth system is a complete rewrite of the bandwidth system.
Its goals include: • >Enable simple, effective UI feedback to users about bandwidth usage and >remaining bandwidth • >Simplify the mental model of what buying additional SP gives users • >Reduce or eliminate unstable feedback in current bandwidth system Resource credits Each account has a "Manabar" called "resource credits."

Resource credits have the following characteristics: • RC's are attached to a particular account and cannot be transferred • An account's maximum RC is proportional to its VESTS • Transacting uses RC • Transactions which would cause a negative RC balance are blocked • RC regenerates over time

Computing Price

The price of each resource will be based on the current level of the stockpile.
As the stockpile decreases, the price of that resource (in terms of RCs) increases.
In other words, as the stockpile goes down, accounts will have to pay more RCs to use the remaining resources. Cost in RCs won’t translate into anything like a price increase in terms of Hive or USD, due to the fact that RCs are non-transferrable. The goal is only to leverage a market system to ration resources, not to create speculative opportunities or manufacture another token that can be used to purchase goods or services.<

Computing Cost

For each transaction, the System will statelessly compute a value and exchange rate in RC for resources like CPU megacycles, state memory, and history size.

That’s it! Resource Credits “the gas of the Hive Block Chain”

@shortsegments

About @shortsegments

Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance. He has been a community member for more then three years, and has earned a reputation of 75, on a scale of 0 to 80, which puts him in the top 300 of over 20,000 Hive accounts.

He is also a builder, with two current projects: The first is the No Loss lottery, a prize linked savings account here on Hive, which awards more the 100 Leo in prizes weekly, and which recent surpassed 1000 tickets sold. @nolosslottery

His latest project is Easy DeFi, which creates a community investment pool allowing community members not yet confident enough to invest on their own, a chance to easily invest in yield-farming and staking on Cubfinance. @easydefi

Cubfinance is the Hive communities home grown Yield Farm and is audited by CertiK, a third party which certifies DeFi projects on Ethereum, Binance and polygon ecosystems.

Read more of shortsegments articles here: https://leofinance.io/@shortsegments

Congratulations;actions @thaddeusprime for your winning entry in the No Loss Lottery 2 tickets in the Sunday Drawing!

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