What role does RAM play in EOS ecosystem? Way to bring the RAM price down
EOS RAM has been hitting the headlines with the rumours of its deficiency. To know why its deficiency will affect the EOS ecosystem, it is important to know what role it plays.
The RAM is required to store account information such as keys, balance and contract state. Users cannot ask the entire Blockchain if they need any data – it would take too long. So, it is stored in RAM and be accessed from the memory. Every single piece of data is replicated in the RAM of every node. This is the reason why keeping data in RAM is expensive. As Dan Larimer said, “RAM is meant to be used for developers who want to build real things to make everyone’s lives better”.
Full nodes are expected to have an amount of RAM for maximum performance. RAM availability is scarce, as a single computer RAM is limited by Moore’s law, the Medium post mentioned. To allocate RAM, EOSIO adopts a free-market approach. The EOSIO system allows users to purchase RAM from the system and also sell it back in exchange for EOS tokens, providing liquidity in the RAM market while facilitating price discovery.
In the marketplace, the algorithm that’s used is known as a Bancor Relay which doesn’t preset the price of RAM. They just offer to buy and sell at previously decided market rates. It is to be noted that RAM price is not a popular feature among the price speculators. However, it has the potential to affect the running apps and also in the creation of new accounts. There are speculations that if the price of RAM goes really high, creating new accounts on the blockchain could turn out to be really steep.
In EOS Block Producers panel discussion on Huobi Talk, Block Producer EOSHuobiPool insists that long-term price stability is needed so that developers can predict the cost of operating. Dan Larimer clearly said that he would leave the RAM price to the free market to decide.
How to bring down RAM prices?
According to a Medium post, EOS Asia proposed that adapting to the increasing RAM prices through sidechains may work. They added that they’re planning to get some Block Producers to run the sidechains. eosDAC is a Dapp on the EOS ecosystem and they mentioned that the proposal may allow the standby Block Producers to contribute to creating sidechains. Though it appears to be a great idea, they still do not have a befitting smart contract architecture that will allow sidechain-mainchain integration on the ecosystem.
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