LeoGlossary: Fast & Fee-Less (Hive)
This relates to how transactions operate on the Hive blockchain. It is a way of describing the operations in comparison to other networks.
Fast
The transaction time on Hive is 3 seconds. This is much faster than most blockchains, especially those using the proof-of-work consensus mechanism.
This gets even more pronounced when we start to incorporate the settlement times. With the one block irreversibility, which is a couple hundred milliseconds, we see the total time average around 1.6 seconds.
From the user end, it puts it on par with payment networks such as Visa.
Fee-Less
On Hive, there is no direct transaction fees to engage with the blockchain. Instead, the Resource Credit system is utilized. This quantifies each transactions and applies a virtual cost.
The amount of engagement on-chain depends upon one's stake. This is achieve by powering up $HIVE, transforming it into Hive Power (HP). Here is where the amount of resource credits is correlated to the HP that is in an account.
As an aside, since Hard Fork 26, the blockchain has the ability where delegation of resource credits is possible. This means that an individual can retain the voting power associated with the HP yet transfer over the ability to engage to another.
A key point in making this fee-less is the fact that resource credits regenerate each day. The rate is 20% of the total per day. Thus one can use that allocated amount on a daily basis and it would fully recharge 24 hours later.
Unlike other blockchains where transaction fees are an expense, on Hive engagement comes from one's investment. Instead of the fee being "lost money" the second the transaction is initiated, on Hive one simply has to wait until the virtual cost is regenerated.
Micropayments
The fee-less system of Hive makes it one of the few networks that can engage in micropayments. This is something that is novel to the cryptocurrency world. Due to the idea of tokenization, things such as infrastructure can be paid in micro amounts. This is not the case with the present fiat currency system since we do not operate in denominations of a fraction of a cent or pence.
Another reason this stands out is because most blockchains have direct, per transaction, fees. This eliminates the potential for micropayments since the fees are higher than the payment amounts.
Micro-Earning
Once the ability to provide micropayments is in place, micro-earning is also possible. This could be a vital part of social media going forward.
This is the idea that people can earn miniscule payments for certain activities. This will net a small payment but can add up as activity increases. For example, the rewarding of comments or microblogging are prime examples of ways people can micro-earn.
LeoThreads is a feature put forth by the Leofinance team that incorporates this concept.
This also can apply to data. There is no doubt the value of data. Thus far, major corporations are the ones benefitting financially from the accumulations and growth. Individuals receive no monetary reward for what they provide.
Micro-earning could also apply to payments for infrastructure whereby providers get fractional units of coins or tokens for the services provided.
Related:
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How Much Does Podping Cost - explaination of use case of Hive blockchain and the resource credit system
General:
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