LONDON (Bywire News) - Larimer begins by pointing out the EOS public network and first real-world use of EOSIO blockchain software is the “most used by a wide margin” compared to other blockchains. He says the EOS network has been processing a continuous 800 transactions per second (TPS) “utilizing a fraction of its technical capacity.” Larimer, supported by experts in the space, believes the EOS blockchain can process 4,000 TPS and potentially more once a scalability solution is applied.

Recently EOS has been criticised for congestion issues and that CPU has been unavailable at an affordable price. Larimer says:

“The demand for transfers has been so high that the resource exchange, REX, has run out of EOS tokens to lease.”

https://twitter.com/bytemaster7/status/1199521355508703235

In a recently published Medium post Larimer explains why REX ran out of EOS and pens his solution to ensure that “CPU resources are always available at a reasonable market price.”

Renting EOS from REX is a solution to obtain the token, without ownership, and stake it to the network to obtain the needed CPU bandwidth to process transactions on the EOS blockchain and power DApps.

It’s DApp developers and companies that have raised many of the concerns. EOSBet, now EarnBet, one of the first EOS-based games, this week threatened to leave the EOS network within 30 days if the issue of needing such a high amount of EOS staked to the network to process a single transaction isn’t resolved. EarnBet writes:

“With intense network congestion and spam, users are unable to access their EOS accounts. Currently, the network requires around 30 EOS staked to an account in order to perform a single transaction each day.”

Larimer says the “challenge has become establishing a price for renting EOS, while maintaining the value of utility for EOS owners.”

He says Block.one did not anticipate the withdrawal of EOS from REX which led to the shortage, given the rewards available.

“Recently the REX got into a situation where there was no EOS available to rent at any price, because it is possible for those providing EOS for others to rent to recall them at will.”

Larimer says REX is working as designed and it was built on a number of assumptions which “mismatch” the “reality of REX usage.” He says an “ideal algorithm” would be where:

“CPU would have no speculative value and the amount of CPU time you had reserved would be fixed and predictable.”

CPU could be used without tying up capital investment in EOS and there would always be CPU available leading to a more stable price.

He proposes a new system where:

“100% of all CPU time should be leased from the system contract at an EOS price that grows exponentially as the percentage of CPU leased increases. The EOS paid to lease the CPU time would be distributed to staked EOS tokens (e.g. the REX pool).”

In the new system the speculative element of CPU pricing is removed and “everyone is operating under the same resource model.”

As REX always has the potential for all CPU to be withdrawn from the rental market, Larimer suggests a gradual move to the new system, should the proposal be accepted by the EOS community:

“The most direct way to resolve this is to gradually shift the percentage of CPU allocated under the current model to the new model via inflating the CPU supply over time.”

Eventually use of the REX market would decrease and the CPU market would be utilized entirely. Larimer suggests a time frame of one year and that:

“If adopted by the community, those who own EOS and stake for themselves would have to shift to renting CPU from the new market as their existing staked EOS would have a decreasing share of the total CPU market.”

Larimer says his proposed model will stabilize CPU prices, reduce CPU rental costs and increase the predictability of access, but gone would be the ability to “own CPU.” He concludes:

“Combined with the ability of service providers to cover CPU costs on a per-transaction basis for their users, this will make EOSIO based networks the easiest to use and most cost effective solution on the market.”

On Twitter already, views on Larimer’s proposal are mixed. Though many are supportive others believe the model too complex or too similar to the pay-per-transaction model of other blockchains.

It’s also noted on Twitter that it is the developers that deal with the complexity and costs of CPU and other resources. For the end user of a DApp, their transactions are simple and free providing a seamless user experience.

In October, Larimer proposed a new EOS governance mechanism to improve the reliability of block producers. And, on November 14, Block.one revealed it would be taking a more active role in EOS governance.

(Written by Melanie Kramer, edited by Michael O'Sullivan)

#Politics #Tech #Bywire News #Tech #Crypto News #Top Stories