What does EOS memory (RAM) mean?
Summary
First, RAM is not cryptocurrency, but a developer resource in the EOS ecosystem. In the computer and mobile phone fields, RAM refers to what everyone commonly calls 'random access memory', which is a type of volatile memory that is an important component determining the operational speed of computers and mobile phones. DApp developers develop and run DApps on the EOS network just like running an application on a computer or mobile phone. Running a DApp on the EOS network requires four types of resources: CPU, bandwidth, memory (RAM), and storage (ROM). RAM is very valuable to developers because developing DApps requires occupying RAM space.
What is EOS memory?
EOS (Enterprise Operation System) is a blockchain operating system designed for commercial distributed applications. EOS is somewhat similar to Microsoft's Windows system, creating a developer-friendly underlying blockchain platform that supports multiple applications running simultaneously, providing a foundational template for developing DApps (decentralized applications).
First of all, RAM is not cryptocurrency, but a developer resource in the EOS ecosystem. In the computer and mobile phone fields, RAM refers to what everyone commonly calls 'random access memory', which is a type of volatile memory that is an important component determining the operational speed of computers and mobile phones. DApp developers develop and run DApps on the EOS network just as they would run an application on a computer or mobile phone. Running a DApp on the EOS network requires four types of resources: CPU, bandwidth, memory (RAM), and storage (ROM). RAM is very valuable to developers because developing a DApp requires occupying RAM space. Additionally, there is no concept of an address in EOS; if users want to use EOS, they must create an account on EOS. Creating an EOS account consumes memory, i.e., RAM. RAM is used for some special operations on the EOS chain, such as creating new accounts, bidding for EOS account name auctions, etc. Database records consume RAM; hence, RAM is a precious resource.
The official idea of EOS is that for all DApp developers, various resources on the EOS network can be shared. In other words, the memory on the EOS network is not allocated based on the amount of EOS owned but is shared. To use EOS memory, you need to mortgage EOS in exchange, and after using it, you can release the memory while redeeming the mortgaged EOS. By mortgaging EOS, you can obtain corresponding amounts of memory. For example, on the 19th, the price for each KB of memory was 0.017 EOS. Therefore, if you need 10MB of memory, you need to mortgage 174 EOS.
If this memory is no longer needed, you can sell it and receive the corresponding amount of EOS based on the current memory price. The 10MB of memory you bought on the 19th can be sold today at a price of 0.186 EOS/KB, instantly turning into 1903.7 EOS.
Memory has also become a highly speculative item due to this design, and buying low and selling high can yield significant profit margins.
How to obtain EOS memory?
Developers can use EOS tokens to purchase RAM and ROM. They can buy for themselves or buy for others. When mortgaging EOS tokens to obtain RAM or releasing RAM to reclaim EOS, a 1% handling fee is charged.
Can EOS memory be traded?
The term 'trading RAM' actually refers to the transactions of those EOS tokens mortgaged to obtain RAM; RAM does not directly participate in circulation. To use RAM resources, a certain amount of EOS must be mortgaged. During the mortgage period, EOS is locked and cannot be traded or rented out. If a user needs to use this part of RAM continuously, the corresponding EOS will also be locked for a long time. If RAM is only used for a period of time and is no longer needed later, they can choose to release this part of RAM and reclaim EOS, which can then be used for trading or renting.
The process is as follows:
One, for friends who have EOS accounts and private keys. You can download the TokenPocket wallet:
1. After downloading, import your previous EOS private key.
2. Click Discover ----- EOS Assistant --- Resource Management:
3. You will see 'computing resources, network resources, memory resources'
4. Memory resources refer to RAM.
5. To support your subsequent operations, you first mortgage computing resources and network resources; you don't need too much, 0.5 EOS is enough.
6. Then you will use the remaining EOS to purchase memory resources.
The price of memory here is the unit price, for example, if the price is 0.1 EOS/Kb and you purchase 50MB of memory.
So the number of EOS you are currently mortgaging is: 0.1X50X1024=6120 EOS.
Currently, the price of memory is still fluctuating significantly, everyone beware of the risks.
Two, for friends at the exchange.
First is to withdraw coins.
What to do if Huobi and OK cannot withdraw coins? Use the brick-moving method, we will first take ETH as an example.
1. First, sell your EOS for ETH, and then transfer the ETH to an exchange that can withdraw EOS. For example, OTCBTC.
2. Then on the OTCBTC cryptocurrency exchange, you will sell ETH to exchange for EOS.
3. Withdraw EOS! To your personal EOS wallet account!
4. Go back to the previous step 'one'.
Three, for friends who have EOS at exchanges but do not have an EOS wallet account.
1. Register an EOS wallet, still taking the TokenPocket wallet as an example, create a wallet account.
2. Tell your account name to a good friend who has an EOS wallet and ask him to help you mortgage CPU and NET, which are computing resources and network resources.
Then your wallet account is complete, go back to step 'two'.
What is the reason for the soaring price of EOS memory?
Whenever the coin price drops, the development costs accordingly decrease. EOS's user side has no handling fees, but the development side's costs are not low. All these project developers will buy memory in large quantities.
Generally, the lower the coin price falls, the larger the amount of memory purchased. According to BM's statement, the final pricing method for EOS is the Bancor algorithm, and memory is also calculated using this algorithm. The special feature of this algorithm is that the more people buy, the higher the price, and the rate of increase will get larger.
According to the saying from EOS Wenzhou, under the Bancor algorithm, the market calculates the RAM price based on the current total amount of EOS and the total amount of available memory. In other words, when memory is less, the amount of EOS needed to exchange for memory resources increases. Scarcity raises value; current memory is like gold among metals and prime real estate among properties.
Conclusion:
As an important resource in the EOS ecosystem, if the price of RAM is driven too high, it will inevitably increase the development and operational costs of DApps, reduce developers' enthusiasm, and be detrimental to the healthy growth of the EOS ecosystem. Currently, the EOS constitution is ambiguous. If EOS voting decides to increase RAM capacity, then RAM will no longer be scarce and the price will decrease. At that time, those speculators who bought RAM in large quantities at high prices will find themselves in trouble. RAM is a very important resource for DApp developers. The trading of RAM is actually a very interesting concept. From the surge in RAM prices, we can also see how important it is to emphasize the incentives of the crypto economy and to create stable liquidity.
If you missed Bitcoin in 2013
If you missed Ethereum in 2017
If you missed Doge and Shiba in 2021
If you missed shorting Luna in 2022
If you missed PP in 2023
Do not miss EOS RAM in 2024
RAM is not a coin, it must be purchased within the TP wallet
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