It is no doubt that EOS mainnet is spreading like a wild fire. EOS was initially an ERC-20 token (ERC-20 is a standard used in Ethereum. Any token issued under Ethereum is an ERC-20 token).
EOS mainnet was launched in June 11 2018 and ever since, A lot of Dapps (decentralized applications) are being lauched Eos mainnet. EOS is very broad that sometimes even crypto experts find it a bit difficult getting around the terminologies. Some investors had to sell their token simply because they feel the EOS technology is too complicated and they couldn’t follow up with the project.
I wrote this article with the simplest of terms so that even a newbie in EOS can understand how everything works in EOS.
1. RAM: Ram as we all know, is a volatile memory which is used to store temporal information. Ram in EOS is quite different because Ram is actually the main storage in EOS. Dapps, newly created account details and all your transaction details are stored in a Ram when it comes to EOS.
EOS RAM uses “Bancor algorithm” (this is simply a means of ensuring liquidity in RAM market such that there is always RAM available for you to buy). Without the Bancor algorithm, some one with a lot of money can just buy the Entire RAM in EOS and start hoarding it.
2. STAKING: just imagine EOS as a giant computer in which everyone has He’s work station. Your EOS account serve as your work station here. For you to be able use your work station you need to rent some CPU and NET from the giant computer. Your staked token serves as a means of temporarily paying for the CPU and NET you will be using to carry out your transactions.
So the process of acquiring NET and CPU in EOS is termed “STAKING”.
Staking does not only allow you to acquire NET and CPU, it also allow you to vote BP and also serves as protection for your funds because unstaked token are subjected to 3 days wait. So if someone should get into your account, you can easily freeze your account before the 3 days wait is completed.
3. UNSTAKING: unstaking is simply the opposite of staking the process of converting you CPU and NET back to your original token is called unstaking. Unstaked token are subjected to 3 days wait. When you unstake all your token, you will no longer be able to use the NET and CPU and you will not be able to vote BP’s.
4. BP’s voting ; (block producers) are responsible for maintaining the EOS mainnet, when an adjustment or more RAM is needed in the network, BP are responsible for this. and many other functions.
Voting is free in EOS and to be eligible to vote BP’s you need to have at least one registered EOS token. You can change the BP you vote for at any given time. but the more ofen you vote, the less power your vote has. You can either vote yourself or delegate a proxy to vote for you.
i will write a more detailed article on BP’s Voting do ensure to check my blog for that .
thanks for reading and don’t forget to leave your contribution in the comment section