This entry is part 3 of 4 in the series EOS FAQ

In my previous post, I explained the fundamentals of EOS. There, I mentioned that EOS is an operating system designed to run decentralized applications. This operating system is run online and there are 21 main block producer nodes that power it. The system specifications of the nodes determine how fast EOS blockchain can process transactions.

That is why block producers who run nodes are expected to use high end hardware for the nodes. But the hardware they have has a limit. They can’t use an intel CPU that is faster than Intel Core i9-9900K (this is the fastest CPU from intel if I am not wrong). And the amount of state memory the blockchain has is limited by how much RAM the nodes have.

To solve this resource scarcity problem, EOS Network distributes the right to use resources such as CPU power and Bandwidth to those who hold and stake EOS tokens. The  more EOS a user stakes, the more CPU and Bandwidth he gets. As for RAM, he has to buy it from the system.

This system prevents spam in the network and allows legitimate participants to transact proportionally to their influence in the network. It is important to note that holding EOS doesn’t grant resources to users. They have to stake EOS to get resources.

EOS staking function allows users to lock up a portion of their tokens which will stay locked until the user decides to unstake them. After the user unstakes the EOS, he has to wait 3 days to get them back. It works similar to how fixed / time deposits work on Banks. But here, the user gets resources instead of interests. This feature increases the security of a user’s EOS holdings.

To learn more about how these resources work on the EOS network, read my following articles:

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