EOSIO*1 has some features which are confusing to developer familiar to ethereum. Therefore we introduce you compact guide of EOSIO platform.
On Bitcoin and Ethereum, account is nothing but pair of private and public key. It is different on EOSIO, each account has multiple permissions and each permission has pair of keys. Account on EOS is expressed as 12 characters using alphabet(a-z) and number(1-5).
Initially, an account has two permissions, Owner and Active. Permissions have master-slave relationship and Owner permission is entitled to create/restore/delete other permissions as a root of all permission. Therefore you had better not have private key of owner permission in hot wallet.
For deploying smart contract, you should use Active permission.
To operate smart contract on EOSIO account owner have to assure three resources. CPU Bandwidth, NET Bandwidth and Memory.
You can get CPU and NET by staking EOS token to your account by yourself or delegating from other accounts. Staking/Delegation can be unstake any time you want and EOS token is return to your account.
To get Memory, you have to exchange EOS token to RAM token and hold it in your account. You can always re-exchange tokens, however exchange rate may change.
Below explanations are quote from website of EOS NewYork, one of a major Block Producer.
CPU Bandwidth is measured as your average consumption in microseconds over the last 3 days. CPU bandwidth is temporarily consumed when you send an action or transaction but decreases over time returning to 0. The longer your transaction runs, the more CPU bandwidth it will consume. You can unstake at any time to reclaim your EOS tokens.
Network Bandwidth is measured as your average consumption in bytes over the last 3 days. Net bandwidth is temporarily consumed every time you send an action or transaction but decreases over time returning to 0. The more tokens you stake for net bandwidth the more you get to use. You can unstake at any time to reclaim your EOS tokens.
RAM is required to store data on the blockchain and must be purchased. You get a set number of bytes of storage based on the current RAM market price. The price automatically adjusts up and down with buying and selling action. When you release storage you can sell RAM back to recover EOS at the current ram market price.
EOSIO has two types of token.
Native token of EOSIO. EOS token has x functions.
- a) obtain computing resources on EOSIO by staking/delegating
- b) voting right for election of Block Producer
Developers can get EOS token by using crypto exchange such as Binance or asking someone to transfer.
RAM token is needed to obtain RAM on EOSIO. It only exist on EOSIO and doesn’t have any other function*2. Developers can get RAM token in exchange for EOS token through Bancor algorithm and it never be traded external exchange.