Why is the development of dApp on EOS is not a very profitable occupation?
Blockchain EOS, started on 14 June after a 340-day ICO, naturally face many challenges as they grow older. “Killer Ethereum” guarantees zero Commission and high scalability, which allows thousands of decentralized applications (dApp) to coexist on the platform. According to these indicators, EOS outperforms its congested, expensive and slow ancestor.
However, the developers of the first dApp for EOS Express concerns another question: if Ethereum is costly for application users (any action within the game or other dApp determined smart contracts and requires computations that the user must pay for the gas), EOS costly for developers.
“EOS shifts the transaction costs and storage developers. Ethereum — users,” writes a participant in the discussion on Reddit.
Yu ting Chen, the CEO recently started on EOS game PandaFun, estimated the cost of all required EOS-dApp resources in EOS 21,000 ($122,000 at current exchange rates). The deployment of smart contract on Ethereum dApp will fit into the $100.
Where are the numbers?
EOS, by its nature, involves a “shared” network device. This logic is determined by the algorithm used to reach consensus DPoS (delegated proof-of-stake, or delegated proof of stake). If a conventional proof-of-stake coin validator can be any member of the network (and the likelihood that he will produce the block proportional to the number of persons on account of his coin — that is, his share in the network), the delegated version of validators, or manufacturers of blocks, “are elected by” ordinary users. Thus, the network of EOS is supported by “a constantly changing group of 21 manufacturer of the blocks.” They share in the network in order to validate the transactions and generation of blocks, and the “voters” to participate in the elections. Everywhere operates the same rule, namely, more powerful voice from someone who owns a larger share of the network.
Another, but also “share” mechanism allows for “casual” work EOS, that is, allows users (and developers) to access accounts, execute transactions and create smart contracts, and also protects the network from spam. This mechanism is called stacking. In fact, it makes possible no commissions as networks of bitcoin and ether all these operations (except create your account, which is free) “sponsored” commissions.
Staking is a “locking” of funds for a certain period of time in exchange for one of the resources required for network operation. We list these resources:
Network traffic (NET). The average NET consumption is measured in bytes, you spent the last 3 days. NET is spent every time you make some action on the blockchain, for example, send a transaction. The more tokens you allocate as share on the network, the more NET you get to use.
CPU time, or computational power (CPU). This is the time that the CPU spends on executing a given activity. The average consumption of the CPU is measured in microseconds, spent the past 3 days. CPU time is also consumed in the implementation of each action on the blockchain. And the longer it is, the more CPU time it consumes.
These resources are allocated in proportion to the amount of tokens deposited during a three-day staking contract. In the implementation of staking you specify which part should go to the acquisition CPU, and some on NET. Subsequently, you can either add funds to the contract, or to refuse available resources, exchanging them back to the EOS token. That is, when stacking you don’t lose your money: in the contract, they will dwindle, however, after three days, the value of the contract at EOS will return to the original figure. The only thing that will change is the dollar equivalent.
The economic essence of staking to confirm that you are not wasting the “established” token within a specified contract time. That is, you keep the tokens at the time of inflation — when manufacturers blocks “mint” new coins that go to their reward. So you pay the nodes that process your transaction and provide computing power.
The third resource is random access memory (RAM). We will talk about it separately because the method of acquisition is different from staking. He bought on the domestic market RAM, the price is automatically adjusted depending on supply and demand. RAM required for data storage on the blockchain, that is, you pay for a certain number of bytes. If a particular memory is no you do not need, you can sell it at the current rate and get EOS. RAM is limited (currently 72 GB, of which involved 62% to 44 GB RAM), but if necessary can be increased. So, the manufacturers of the units had already increased the memory size when after you start the core network speculators started buying RAM to sell it later at a higher price. It raised the price to 0.94 for EOS KB — 9 times above the current level. Then it was decided to double the RAM issue, adding during the year to 64 GB the rate of 1 KB per block. This step helped to calm the market RAM.
On an industrial scale
For the development of EOS applications and onboarding (roughly speaking, the involvement) of users the project will require a large amount of these three resources, and therefore a substantial amount of funds. Even though tokens, paying for NET and CPU, in fact, not spent, they must be “reserved”.
Kevin rose, co-founder of the company-the manufacturer of power EOS New York, said that negotiating with the group of developers who want to use EOS instead of their current platform.
On the transition from Ethereum on EOS have openly said event platform Tixico: EOS “promises enough to scale, even with millions of users, and this is critical to the platform, designed for simultaneous servicing of a large number of people — as is happening with the sale of tickets, when tens of thousands [of people] simultaneously enter and commit a transaction”. Of the other advantages Tixico also noted the lack of commissions.
However, each of these teams will have to pay dearly for attractive scalability. PandaFun CEO, reported 21,000 EOS, gone to the app development, also spoke about the distribution of the tokens resource: EOS 10,000 (about us $58,000 at the current exchange rate) was spent on RAM, same CPU and EOS 1000 ($5800) — NET. However, Chen noted that a large part of RAM needed for the approaching tocancel — play game, it will need less.
On average, the creation of an account for each user requires 4 KB of RAM (about $2.7 on the current price of RAM). However, memory is required for many other actions.
“We don’t yet understand the total cost of onboarding user dApp. I don’t think that this data — can you give us confidence in the average [price index],” said rose.
However, in June, when the cost of creating the account was even lower ($0.5–$1), the discussion on GitHub already pointed out that such a model “RAM just may not work if your goal is to create tens or hundreds of millions of user accounts for your dApp”.
At whose expense
Cost resources can then become a problem not only for developers but also for users of EOS applications.
“There are scenarios under which a developer can write a dApp so that the user had to have their own CPU and/or NET and/or RAM for interaction. This is one way to write an early version of your dApp so that you are bankrupt, if an application suddenly becomes popular,” says former Vice-President for product Block.One Thomas Cox.
In the discussion on Reddit on how developers can cover the cost of RAM, CPU and NET, the introduction of special fees for the users have become one of the main proposals.
“They can easily introduce a fee for using your dApp. No difference in EOS or in their token. The fee will go to application developers,” — writes user under the name mr1ply.
Another participant of the discussion, SuddenAnalysis, noted that while many applications, obviously, will start to charge this fee, others “will have inflationary model, where developers receive a portion or all of the profits from inflation to continue to pay for [the resources] are exclusively due to the value of its platform”.
“Inflation! You must develop your crypto-economy, so that inflation covers the cost of development,” wrote ablejoseph.
The resources obtained through staking — CPU and NET — according to some users, it is not a problem for developers:
“If the developers have already made as staking “bundle” EOS, they do not need to worry about the running costs. The tokens themselves will scale with the expansion of the network. If they need to buy more EOS, they should be able to sell your app token to [enough] for the purchase of CPU and traffic,” writes one participant, noting that “every dApp must have a well-thought-out economic model that can sustain itself and to grow.”
However, the forecasts of costs to do too early: now the network is just beginning to attract users and developers. According Dapp Radar, at the moment only six EOS applications have more than a hundred visitors a day and only two to over a thousand. In this regard, the CPU time is little: 0.00049966 EOS per KB ($0.003).
Thus in a recent post on Reddit, a user of the second popular EOS-apps — games EOS Knights — already draws attention to elusive requirements of staking for the CPU. User under the name AGameDeveloper tells us that made as staking 10 EOS ($59), but it was not enough. According EOS the Knights to start the game, the percentage of user CPU must be at least 15 EOS ($88), but AGameDeveloper writes that in fact the minimum staking equal to $500.
“The current percentage CPU usage is 8%, so imagine how expensive will be staking in absolute [use],” wrote one of the participants of the discussion under the post.
In August, hackers were able to absorb the memory of someone else’s account using the notifications function to sasamat space RAM useless data. One of the solutions of such problems describe the technical Director of EOS Dan Larimer, however, it was proposed in the framework is ambiguous and not yet approved of the proposal to rewrite the “Constitution” EOS. Another solution posted on GitHub, involves sending a token through a proxy smart-contracts that do not contain RAM. In any case, the solution to this problem, in fact, remains on the shoulders of the developers of each individual application.
In addition, the system designed to protect against spam, was susaninas that was possible and not too costly due to today’s low price CPU. The owner of the account Blocktwitter fun, “sending messages, including 192 million action that is about 95% of all EOS-transactions,” said Tom Fu, a partner in the company-manufacturer of power GenerEOS. Almost all of them contain the entry: “WE LOVE BM” (a reference to the nickname of the Larimer — bytemaster). According to Fu, the message “not important”, but they have a negative effect on the network because Blocktwittter owns a large share of the CPU, causing the CPU time allocated to other users and developers, reduced.
The light at the end of the tunnel
In early August, the Larimer proposed model for CPU and NET lease, which “will reduce the cost of using network EOS”.
And Cox noted some obvious advantages of EOS, which already distinguish the young from the Ethereum platform. First, the new “cryptocotyle” will not stop the EOS, as happened with the Ethereum: staking ensures that the performance of the network will be supported by a certain number of reserved CPU. Second, two of the three EOS resources — CPU and NET — renewables (unlike gas in Ethereum). That is, after a three-day validity takingover smart contract funds will be released and can be re-spent in the same (or other) purposes. Unused or freed memory (RAM) also can be sold — though perhaps at a lower cost (and maybe higher). In addition, the arbitration system that supports the safety of EOS is considered sufficiently robust to protect against attacks in scenarios DAO and Parity, whereas the developers of Ethereum applications, according to Cox, are in the “same bug from bankruptcy”.