Definition ∞ Usage-based billing is a pricing model where customers are charged based on their actual consumption of a service or resource, rather than a fixed subscription fee. In the context of decentralized networks and cloud services, this means users pay for the specific amount of storage, computation, or bandwidth they utilize. This model promotes cost efficiency and fairness by aligning expenses directly with the resources consumed. It offers flexibility, allowing users to scale their usage up or down as needed.
Context ∞ The adoption of usage-based billing is a natural fit for decentralized cloud and computing platforms, reflecting the granular resource allocation inherent in these systems. A key discussion involves designing transparent and verifiable metering mechanisms on-chain to accurately track and bill for resource consumption. Future developments include more sophisticated dynamic pricing algorithms, integration with micro-payment channels for real-time billing, and widespread adoption as decentralized infrastructure matures.
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