This article was first published on eosio - Medium
EOSIO provides a wide range of options for allocating the available CPU and network bandwidth among token holders. The underlying principle of EOSIO is that if you own 1% of the tokens you may utilize 1% of the available bandwidth. Following this principle we created the resource exchange contract, known as REX, which allows token owners to rent their bandwidth to others at a market rate.
With the advent of EOSIO 1.8, it is now possible for a contract owner to pay for the CPU and network bandwidth of their users by co-signing the transaction. Applications are now able to rent resources from REX and then cover bandwidth for users by cosigning their transactions. Under this model users no longer have to worry about bandwidth resources. This model is similar to how companies can choose to either buy hardware or lease it from cloud services, while simultaneously enabling companies to subsidize the bandwidth requirements of their customers.
In addition to the above two ways to gain access to bandwidth on EOSIO networks, allocated, but unused, bandwidth can be freely used by others proportional to their tokens. This is like an internet service provider having a minimum guaranteed bandwidth, but allowing you higher speeds when the network is not congested.
The Debate over Allocation of Free Resources
Some users of EOSIO public blockchains, such as EOS, have come to count on “free bandwidth” like someone renting cheap AWS spot instances. Eventually, someone bids up the spot instances and their “cheap” service is cut off unexpectedly. This is what happens when someone rents tokens from the REX and then utilizes the available “free extra capacity” to bring the cost of “spot instances” beyond what many accounts have provisioned. An account may only have a guarantee of 1ms per day, but be relying ...
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eosio - Medium