Definition ∞ Network credits are a form of internal currency or resource allocation mechanism within a blockchain or distributed network, used to pay for computational resources or transaction fees. These credits incentivize participants to maintain the network and process transactions. They function as a measure of a user’s allowance to consume network resources.
Context ∞ The concept of network credits is fundamental to the economic models of many blockchain protocols, directly impacting network congestion and transaction prioritization. News often reports on adjustments to credit systems or gas fees, which affect user costs and network usability. The ongoing situation involves optimizing these mechanisms to balance network security, decentralization, and scalability.
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