EOS RAM Allocation - Reading Assignment

Blockchain Business Course
#142
  1. The developer cannot complete operation and deploying such smart contract on the network if a dapp run out of RAM.
  2. The Dawn 3.0 and Dawn 4.0 differences is to move from fixed payment model to a market based model.
  3. Market driven model for RAM staking is beneficial for allocation of resources on the network. Encourage the developer to free up the RAM resources if his project is done or no longer viable.
  4. The draw backs of market based for RAM staking is that the more dapps being build the more expensive will be. Not only that but also speculation and manipulation which makes the RAM resources expensive for developer to acquire.
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#143

  1. Some operations are unable to carry out and smart contracts cannot be deployed.

  2. Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid. EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0. This market is a function of all the staking and unstaking of RAM on the EOS network.

  3. The benefit of the market based model is that users can receive capital gain from unstaking RAM, also there is more efficient use and supply of RAM on the network as a result of people not hoarding RAM.

  4. There are 2 main challenges with this model.
    a) As more dapps are developed more data needs to be stored and taken off market. This will result in a higher cost for RAM.
    b) Irrational speculators could drive RAM prices high or cause inefficencies in market supply. Expensive RAM costs will result in less development in the ecosystem.

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#144

  1. What would happen if a dapp runs out of RAM?
    When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Under the Dawn 3.0 system contract, token holders can only sell RAM for the price they paid.
    The Dawn 4.0 system switched to a market-based allocation approach using the Bancor algorithm.

  3. What are the benefits or having a market based model for RAM staking?
    This incentivises users to un-stake and free up the RAM.

  4. What are the drawbacks of having a market based model for RAM staking?
    As more dApp developers join, and more data needed to be stored for a long time, more RAM used is extracted out of the market, making RAM more and more expensive.
    Large amount of RAM, due to the speculation or other reasons, are unused, causing a waste of RAM resources.

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#145

1. What would happen if a dapp runs out of RAM?

Certain functions cannot be performed, smart contracts cannot be deployed.

2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?

Dawn 4.0 allows the value of EOS staked for RAM to fluctuate based on market value, rather than the price paid.

3. What are the benefits or having a market based model for RAM staking?

It’s likely to offer more balance over time, in terms of the supply/demand of RAM allocation.

4. What are the drawbacks of having a market based model for RAM staking?

The more dApp devs that join, the more data will need to be stored over time. This will mean that more RAM that is used will be extracted from the market and will cause RAM to be more expensive. This would damage the ecosystem because it could make it too expensive for dApp developers to buy the resources they need for their dApps to perform.

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#146
  1. What would happen if a dapp runs out of RAM?

The functions of the dapp that require RAM will not work and smart contract will not be executed

  1. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?

In 3.0 it was only possible to sell RAM at the price you paid while in 4.0 users are able to buy and sell RAM at market prices.

  1. What are the benefits or having a market based model for RAM staking?

It makes the RAM market more liquid.

  1. What are the drawbacks of having a market based model for RAM staking?

Speculators could try to buy up cheap RAM and not sell it to the market in speculation of future price gains. This would push up the price of RAM and reduce the usage of the EOS blockchain.

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#147

  1. If a dapp runs out of RAM it will stop working.

  2. In Dawn 4.0 EOS changed to a market-based allocation approach using the Bancor algorithm.

  3. The benefits are that it eliminated the hoarding of resources, since users are incentivized to unstake their EOS RAM.

  4. The drawbacks are that as dapp developers increase, resources become more scarce, subsequently making RAM more expensive, and the hoarding of RAM on speculation that prices will go up.

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#148

  1. Some actions will be stopped

  2. In 3.0 you could only sell RAM for what you paid. In 4.0 RAM market switched to using the bancor algorithm

  3. It provides an incentive to unstake RAM as the price increases

  4. People can hold RAM and speculate it’s future price when they don’t even need it.

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#149
  1. cooperations are unable to carry out and smart contracts cannot be deployed
  2. dawn 3.0: token holders sell ram for the same price they paid; dawn 4.0: use banker algorithm that are marked based allocation
  3. more balanced pricing and reducing hoarding of ram allocation
  4. speculation stops development by increasing the costs of ram for intended use cases
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#150
  1. The dapp will not continue
  2. The Dawn 3.0 returned staked EOS RAM in the same amount, resulting in speculation of the Token. In Dawn 4.0 the EOS RAM stakeholder is incentified to unstake.
  3. The amount of RAM is limited and scarce. RAM should be used efficiently, with the market based system an effincient use is improved.
  4. With more and more developpers the used RAM is more expensive deteriorating the ecosystem
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#151
  1. When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed
  2. 3.0 RAM was sold at the price it was purchased
    4.0 RAM price using a market based algorithm approach
  3. price by market
    RAM available for real users and current needs
  4. price speculation and manipulation
    high pice due to speculation which makes it unaffordable for developers to buy their needed RAM
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#152
  1. The smart contract cannot be deployed due to some operations cannot be executed.
  2. Dawn 3.0, RAM was un-staked at the price it was staked. Dawn 4.0, RAM price varies to the market.
  3. Better demand and supply balance of the RAM allocation. Token staked holder can receive capital gain from un-staking RAM then willing to free resources.
  4. Effect from speculation. Speculation makes price go higher, makes it expensive for DApp developer to buy the resources.
1 Like
#153

  1. What would happen if a dapp runs out of RAM?
    When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 3.0 = Token holders sell RAM for the same price they paid.
    Dawn 4.0 = EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.

  3. What are the benefits or having a market based model for RAM staking?
    Prior to that, there could be wasted and unused RAM which is bad for developers who need RAM. With market based model, the Bancor algorithm enables free market to set the price of RAM, hence RAM can be freed up to developers who need it.

  4. What are the drawbacks of having a market based model for RAM staking?
    One potential problem is irrational speculators hoarding the EOS Ram and pushing the price up too high. This would be a waste of resources and hurt the EOS ecosystem.

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#154
  1. certain operations would not execute anymore.
  2. token holders can only sell RAM for the price they paid, just as the other resources. EOS switched to a market-based allocation approach using the Bancor algorithm from Dawn 4.0.
  3. you can get capital from un staking & you free up the resources on the EOS network
  4. as more and more devs flood the market RAM can become expensive & more RAM is extracted out of the market.
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#155

  1. What would happen if a dapp runs out of RAM?
    The dApp will seize to work due to unavailable memory needed to carry out operations.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 3.0 allowed holders to only sell RAM at the price they bought it for. This created inefficiencies in the market. Dawn 4.0 created a dynamic market with the implementation of Bancor trading algorithm .

  3. What are the benefits or having a market based model for RAM staking?
    A free market enables efficient allocation of resources and naturally corrects pricing.

  4. What are the drawbacks of having a market based model for RAM staking?
    Speculators will try to manipulate the market to make a profitable arbitrage instead of using the resources for development.

1 Like
#156

  1. What would happen if a dapp runs out of RAM?
    When RAM is insufficient for a dApp, some operations are unable to carry out and smart contracts cannot be deployed.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Under the Dawn 3.0 system contract, you could only sell RAM for the price you paid. Under Dawn 4.0 the system contract now buys and sells RAM allocations at prevailing market prices.

  3. What are the benefits or having a market based model for RAM staking?
    balanced pricing mechanism. developers are incentivized to unstake RAM they dont need

  4. What are the drawbacks of having a market based model for RAM staking?
    with rising price nobody wants to sell RAM and it is unused.

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#157

Hi @ivan @filip @amadeobrands,

I’m not sure if this is the best sections of the forum to post this but since it is about the last topic hopefully it will still be ok.

  1. I received an email enquirying as to why it seems i stepped away from continuing courses in the academy for a period. This is because although during the free seminar hosted by Ivan which promoted the courses as being suitable for everyone coming into Crypto, I’ve noticed that apart from a few courses which generally all should take, the Academy is mainly designed and focused on Developers. There is nothing wrong with this in principle but i think that for transparency the Free Seminars should say this. Even most of the addition useful things such as the Boot Camp is again focused on developers.

In the Centralised world, I have been a Dev, lead Dev, Analyst, Lead Analysts (Tech and Biz), Implementer. so i appreciate the role of each. Unfortunately, the support for other aspects that complete the Design and Development Cycle in Tech firms is just not the same here. Even when i asked the simple question as to the difference between the old school development documents BRD, FSD, TDD verses the SRS, SDD mentioned in the course, there was no response.

In my review of the Blockchain Business i cited that i think it would have been helpful if details of other major Private Blockchains other than Hyperledger were included. Below is a link to the site that includeds various short video that detail at a high level the functions of all the major components of Corda Blockchain which a large number of banks and new tech firms are ow using even for Defi projects. I would highly recommend the videos.

Videos describing each key concept
https://vimeo.com/showcase/4555732

Text form describing each key concept

I hope these prove useful. I did this research as prep for FinTech interview who use Corda like many of the banks.

For now the Defi 201 has temporarily brought me back to the academy.

Many Thanks,
G

2 Likes
#158

Thank you buddy looking forward to your feedback and let me know if you have any questions :slight_smile:

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#159

Hello sir, I like the approach and feedback you are giving us, yeah for now most of the academy resources are looking to be more oriented to be a developer, since that’s what most of the student are asking for. But we are working on many projects with less focus on developers.

Also you could move this post to a discussion category, since this one is made for an assignment.
You can move to this one: Hyperledger in Business - Discussion.

Thank you.

Carlos Z.

#160

  1. What would happen if a dapp runs out of RAM?
    Some operations would stop as well as smart contracts.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 4.0 traded/exchanged RAM at market, making it different from Dawn 3.0 where RAM was traded like the other resources are. Basically with 4.0, what you stake is not always what they get back.

  3. What are the benefits or having a market based model for RAM staking?
    There is a more efficient allocation of resources as there is no benefit to developers to hoard RAM.

  4. What are the drawbacks of having a market based model for RAM staking?
    a) Ram get’s expensive as more dApps require resource.
    b) Unused RAM will remain as prices go up and developers do not want to let their RAM go.

1 Like
#161

  1. What would happen if a dapp runs out of RAM?
    Dapp stops running.

  2. What was the change between Dawn 3.0 and Dawn 4.0 in terms of the RAM market?
    Dawn 4.0 changed the cost of RAM to a market price system in place of the previous fixed price model.

  3. What are the benefits or having a market based model for RAM staking?
    More supply and demand equilibrium.

  4. What are the drawbacks of having a market based model for RAM staking?
    Encourages speculation, Fees to stake and unstake EOS tokens.

1 Like