CPU, RAM AND NETWORK: SIMPLE DEFINITIONS

CPU

First, it is important to understand what CPU is in a general sense. Per www.makeuseof.com,

“The Core Processing Unit (CPU) is often referred to as the brains of the computer. While the CPU only makes up one of many processing units, it is one of the most important. It is the part of a computer that performs calculations, actions, and runs programs.”

On the EOS blockchain(s), CPU is used to execute transactions.

NETWORK

Network is the amount of data that can be sent from one point to another in a specific amount of time. An example of this in action is phone services and their allocation of data usage per month. If you go above your allotted amount of data usage for the month, you will either be shut off, or have to pay more.

In EOS, network works in much of the same way. The EOSIO software has a default of parameters set and the code or “rules” can be changed by block producers, if they so choose.

RAM on the other hand,

“…acts as a middle ground between the small, super-fast cache in your CPU and the large, super-slow storage of your hard drive or SSD. It’s used to temporarily store working parts of the operating system and data being actively used by applications. It’s not used for permanent storage.”

The above is the traditional understanding of RAM. On EOS blockchains; however, RAM is used for permanent storage. One example is how account keys and balances needs to be stored in RAM and accessed very quickly every time they are called upon. So while it may not be the traditional definition of “permanent”, on the EOS blockchain RAM provides a permanent means of storage.

Example: 1gb of RAM = 1gb of storage on the present day EOS blockchain. So if u want to store a 4gb movie on EOS as of today, you need to buy 4gb of RAM.

SIDE NOTE: In the future there will be solutions where you connect storage for data that doesn’t need as much speed. Examples are picture storage, streaming, etc. Basically, someone could build dropbox on EOS and this will free up some RAM. Users could store transactions on the EOS chain, but the actual data will be stored in a hard drive like service. So a block producer could have one server with a lot of hard drives to store large files. A log of ownership will be logged on the blockchain’s RAM.

TLDR: Basically RAM is used to store information, like a hard drive, but WAY faster.

ALSO REMEMBER: All full nodes also need the amount of RAM that is used by the chain. Meaning, if block producers increase the amount of RAM, it’ll become more expensive not only for block producers to run, but also for everyone else who runs nodeos.