Let’s talk about the recent popular RAM.

What decides the price of RAM?

Even I just can trade in eosio.ram, what calculation is used to control the rise and fall of this price?

The price of RAM is based on Bancor algorithm, which is similar to the market relation between supply and need. The price falls, when the supply surpasses the need. While the price rises, the need exceeds the supply.

Why RAM can soar in a Bear Market?

In fact, RAM plays a hedging role. As we all know, the price of EOS declined a while ago. So, the developing cost also falls for developer, lots of contracts can be deployed at a lower price. These contacts are actually ICO and Legal Currency contacts. However, we need to purchase RAM to deploy these contacts, because cache resources need to be consumed. Therefore, the price of EOS is down, RAM is up. After all, the price is decided by Bancor algorithm. Of course, there are many people who want to buy RAM to speculate. So, when the market is falling, RAM is soaring all the way, which is particularly dazzling.

How does BM curb RAM speculation?

RAM can only be bought and sold through the official eosio.ram, which requires a service fee of 0.5%. The service fee is calculated based on the real-time price. At the same time, users can’t transfer RAM freely, and the price of your transaction must be changed in real time. Therefore, you may not earn even buying RAM.

When you buy RAM, the corresponding EOS in the account will be locked. You can’t do anything. Therefore, you may miss many opportunity, such as the airdrop of the project party.

If the need really surpasses the supply, BM will improve its memory. If RAM updates, it will be a fatal blow for those speculators. Improving memory means increasing RAM. There are more RAMs in the market, the price naturally will fall. But the project party will consider market stability in updating, they don’t increase too many RAMs to avoid too much fluctuation of the currency price, which will undermine the confidence of buyers.

Can these developers bear the high price of RAM?

I think that if it is a good enough DAPP, it will definitely go online on the EOS main network, even if it needs to bear a high cost. In fact, I think it's also a good thing for screening projects, because the price of RAM is expensive. Poor projects naturally don't have enough foundation and bear high cost to be carried on the EOS main network. The rest are relatively high-quality projects, which are an excellent opportunity for users and EOS ecology.

Above questions can be solved with only one payment. Compared with the centralized system, there is no need for a large number of operation and maintenance cost, cloud server cost, cloud storage cost and other costs of traditional central applications. Seeing from the long axis of time, it is actually a big bargain.

It is said that the price of side-chain RAM is low, will all developers use side-chain RAM to put applications? 

In fact, the main chain of EOS and side chain of RAM are independent for each other, the smart contract operating in every chain just can access their own RAM.

Then, side chain of RAM and main chain of RAM are both on EOS, why is the former cheaper than the later? This is just like if you are rich, you certainly prefer to buy a house in the center of the city rather than in the remote suburbs. After all, all the supporting facilities in the city are more complete, it will be more convenient in basic necessities of life. Your connections and work will be here, would you like to leave?

Of course, there certainly are some projects suiting to carry on side-chain. I think that more and more projects in side chain are good. It a bit likes that the countryside encircles the city. If the countryside develops, the city will only be better. Every side-chain project is absolutely good for EOS ecology.

Finally, buying in the side-chain and main-chain of RAM both use the same EOS Token, and EOS Token will never change.