EOSIO Cryptocurrency and Blockchain Guide
EOS RAM is used by users to record and store data on the EOSIO blockchain and is the short form for Random Access Memory. Before a user can create an EOSIO account to use new cryptocurrency tokens and applications on the blockchain, he will need to buy some RAM through trading to store the account information, for example, his token balance and ownership details. As of May 2019, 5k of RAM is sufficient for a user to create an account.
RAM can only be bought with EOS cryptocurrency coins and not with bitcoin, ethereum or other altcoin currencies on a cryptocurrency exchange. Anyone can do RAM trading on the EOS blockchain market but it is not a new cryptocurrency or an altcoin. In contrast, bitcoin and ethereum users cannot increase their allocated storage through resource purchases on those blockchains.
EOS RAM is invented and developed by Daniel Larimer who is also the founder of Delegated Proof-of-Stake (DPoS) consensus protocol and Bitshares cryptocurrency exchange. Bitshares is a famous decentralized cryptocurrency exchange that can be used for bitcoin trading with ethereum and other new cryptocurrency altcoin tokens. Daniel Larimer may have created the design of EOS RAM to discourage hoarding and creation of unnecessary accounts since users will need to pay for an account creation by buying some RAM.
EOSIO Account Creation
A popular question from the community is how much does it costs to create an account. The price of RAM will change from time to time depending on market supply and demand, so we are unable to tell you exactly how much is the cost to create an account. However, the price of RAM is very low as of May 2019 and should be negligible to most users.
Other than common users that are creating accounts, developers of Decentralization Applications (DApps) need RAM as well to develop their applications because it provides storage to record state of applications and it is critical for developers to ensure that there is enough RAM until those state can be removed. If the developer is unable to acquire sufficient RAM, his application may encounter problems.