LeoGlossary: Resource Credits (RC)
Non-transferrable token (credits) that accrue to each Hive account based on how much Hive Power (HP) the wallet has. Resource Credits are what allow users to interact with the Hive blockchain.
Accounts acquire RC by getting the $HIVE coin and staking it through a process called "powering up". The converts the $HIVE into what is known as Hive Power (HP). HP translates into the amount of Resource Credits the account has.
Each activity on the Hive network requires a certain amount of RC to perform. If the user does not have enough RC, the blockchain will reject the transaction.
Some of the activities that can be performed:
- Posting an article or comment
- Voting on content
- Governance voting
- Transfer of $HIVE or the stablecoin, HBD
- Delegation of HP
When a user lack the RC to conduct a transaction, he or she can buy more $HIVE 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.
Access Token
It is the Resource Credit system that turns $HIVE into an access token. To access the blockchain and write to the database, one needs to have enough $HIVE staked. Without that, there is no way to access the blockchain.
As the ecosystem grows, people are going to have to accumulate more coins to access the network. They might also have to decide what is worthy of going on-chain versus storing data off-chain.
The price of $HIVE 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.
Related
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