Written by Malik Corbett
As I wrote in a previous Mining Byte titled The Innovation of the EOS Native Token I highlighted the fact that not all cryptonetworks and their native token are the same. For example, the EOS.IO blockchain allows users to access, purchase and or borrow/lend network resources via the network’s native token known as EOS. Although the network structure and the tokenomics are different for each cryptonetwork; all blockchains use virtual resources such as bandwidth, computation power and storage, and they are not cheap.
The EOS DPoS model is very interesting because it opens up a whole new world of possibilities as it relates to integrating blockchain technology with new business models. One of the aspects that makes EOS so innovative is that the value of the native EOS token is directly linked to real computing resources that can be valued. In EOS the token provides access to a portion of the network’s two critical resources; bandwidth or NET (amount of data that can be transmitted from one point to another) and CPU (compute speed to process code). These network resources allow users to perform tasks on the network such as send EOS tokens to another user or smart contract on the network. Furthermore, the token is used to purchase a third critical resource known as Random Access Memory or RAM. However in the EOS network, RAM is decoupled from NET and CPU. In fact, RAM is purchased from an on-chain Decentralized Exchange or DEX powered by the Bancor market maker algorithm. However, gaining access to the network’s NET and CPU resource requires that you stake EOS token.
What makes EOS.IO blockchain platform attractive is the network’s processing power. However, building dApps on EOS is challenging for developers because it’s expensive. For example, at current EOS prices at approximately $2.80, it costs about 68,125 EOS or $190,750 to purchase 1GB of RAM(1/7/2020). Again, RAM is the virtual storage that is needed for your dApp to store application data (read and write data) on the blockchain. Furthermore, the cost of network resources are correlated to the EOS token which is problematic for developers. If the EOS mainnet gains adoption and the token price increase, it would make the development cost increase causing developers to struggle to pay for network resources in order to build dApps on the EOS cryptonetwork.
Due to the challenges facing developers as it relates to cost on the EOS.IO blockchain platform, an Isreali based blockchain start-up named LiquidApps has created an alternative EOS resource ecosystem called DAPP Network which is powered by its native token DAPP. The DAPP Network is a middleware solution that is built on top of the EOS mainnet (layer two) that allows developers access alternative network resources, utilities and services on the EOS.IO platform. The DAPP Network could be compared to Ethereum’s smart contract solution Chainlink along with its native token named LINK.
The first product released by LiquidApps was vRAM which is an alternative storage solution for EOSIO-based cryptonetworks. The vRAM solution is innovative because it provides an alternative for potentially unlimited storage access for EOS and it decouples the price of RAM from the price of EOS. For example, it currently costs more than 73,000 EOS/1GB or $252,580 USD. The DAPP vRAM solution allows developers to access potentially unlimited RAM at magnitudes lower cost than buying directly from the EOS mainnet.
There are three main value propositions of the DAPP Network that promise to deliver:
- Affordable access to storage
- Potential unlimited amount of storage
- Off-chain processing in a layer-two decentralized manner with on-chain integrity
Furthermore, the DAPP Network offers other products and services such as LiquidAccounts which is an onboarding solution for dApp developers to allow users to create free accounts. Now this may seem like a non-trivial task but for blockchain dApps on-boarding users is a struggle because user interfaces are technically challenging and confusing, especially when using multiple cryptonetworks. However, LiquidAccounts abstracts away the esoteric blockchain on-boarding process and makes the user experience for joining a cryptonetwork more like centralized web application.
To that end, another exciting product offered by the DAPP Network is LiquidLink. This solution allows smart contracts to connect to multiple blockchain such as Ethereum, Bitcoin and EOSIO sister-chains such as TLOS and WAX.
I believe middleware layer-two solutions such as the DAPP Network are innovative and could help blockchains gain mass adoption because it gets at the heart of scalability for dAPP development on the EOSIO cryptonetwork. Layer two scaling solutions such as the DAPP Network are critical components to the blockchain ecosystem and will be fundamental to the success of EOSIO especially over the next few years.
Disclaimer: This post is for educational purposes only. This is not an endorsement to buy or sell any utility tokens or cryptocurrencies. Please consult your financial advisor before purchasing any digital assets.