'credit-based' originates from the English word 'credit,' which comes from the Latin word 'creditum,' meaning 'a loan or something entrusted.'

'creditum' transformed into the Old French word 'crédit,' and eventually became the modern English word 'credit.' The term 'credit-based' was formed by combining 'credit' with 'based' to describe systems or methods reliant on credit.

Initially, 'credit' meant 'a loan or something entrusted,' but over time it evolved to include the concept of trust in financial transactions, leading to the term 'credit-based' to describe systems reliant on credit.