EOS network resources overview
EOS is a "proof-of-stake" blockchain, versus the "proof-of-work" consensus mechanism which Bitcoin and Ethereum employ. This means that the EOS blockchain does not charge transaction fees. Instead, the blockchain requires that users "stake" EOS tokens for the network resources required to create and manage on-chain transactions.
Put simply, EOS requires you to hold a certain amount of EOS in your account to use the blockchain. Holding these funds shows participants have a "stake" in the service and it ensures that they cannot abuse the network without incurring a cost which is significant enough to make the abuse not worth it. The more transactions you wish to perform at any one time the more EOS you must hold in your account.
The three EOS network resources are:
- CPU: CPU is used to execute transactions.
- NET: Network Bandwidth is the amount of data that can be sent from one account to another in a specific amount of time.
- RAM: RAM is used to store information on the EOS blockchain. E.g. account keys, balances and in the case of eosfinex orders and order settlement transactions need to be stored in RAM.
Network resources begin replenishing as soon as they are used and are completely replenished after 24 hours.
Transaction costs which are covered by eosfinex
eosfinex covers a baseline of costs to ensure that our users can use our services freely. In EOS terminology this is called "Staking on behalf of users". eosfinex covers 3 transactions per day for every user and all permanent RAM costs associated with account creation. The transaction which are covered include: account creation transactions (reg user and TOS signing), and transfers into and out of the custody smart contract.
If you require more resources for any reason, you can also buy and sell RAM or stake for CPU or NET resources using the network resources management tools in your account section.