In our increasingly data-driven world, powerful computing hardware is increasingly vital. In fact, if there is such a thing as lifeblood powering our interconnected modern lifestyles, it’s probably the semiconductor components widely used in consumer and industrial products.
With many of the world’s great powers currently ramping up efforts to boost chip manufacturing, this topic has been in the spotlight lately. Indeed, the growing appetite for high-performance processors, memory and data centers to support advanced AI apps has seen chipmakers like Nvidia become one of the most celebrated tech stocks, delivering over 3,200% returns in the last five years.
Nvidia, whose advanced GPUs power breakthroughs in AI, high-performance computing, gaming, robotics and other domains, isn’t alone in riding the hardware wave. AMD CEO Dr. Lisa Su recently unveiled a suite of new chip technologies engineered for AI computing demands, with the company forecasting a massive $4 billion in AI chip sales this year alone.
Unsurprisingly, the rising importance of cutting-edge hardware extends to the world of web3.
Hardware’s Crypto Connections
The crypto industry would not have gotten where it is today without the powerful computing rigs that are essential for miners securing networks like Bitcoin through energy-intensive Proof-of-Work (PoW) consensus mechanisms.
CPU and GPU mining allowed crypto’s early supporters to secure blockchain networks as they onboarded more users and the price of their native tokens rose. As we know, over time it became impossible for individual miners to secure networks like Bitcoin as a solo enterprise, with vast mining pools leveraging data centres taking over.
Crypto’s hardware story goes beyond just mining rigs, though. Efficient data storage and processing are fundamental needs for any blockchain network’s performance and scalability. Case in point: EOS RAM.
EOS’ Very Own ‘Data Gold’
Bitcoin is often described as digital gold, but for Delegated Proof-of-Stake blockchain EOS, RAM is better described as data gold. Random Access Memory preserves the working state of EOS in physical memory to meet exacting performance targets. Without this critical RAM layer, applications and smart contracts simply couldn’t function or store important data on-chain.
As the essential system memory powering all apps and activity on the network, RAM is the keystone enabling EOS’ speed and efficiency. To ensure adequate RAM availability and pricing, the Bancor algorithm is leveraged to harmonize supply and demand dynamics.
On the EOS network, gas fees paid in $EOS tokens cover RAM costs and other computational expenses, aligning with Ethereum Virtual Machine (EVM) standards while integrating with EOS’s native tokenomics. Purchasing RAM, meanwhile, has a similar effect to burning $EOS tokens.
This past March, the EOS Network Foundation (ENF) announced that RAM would become transferable for users, and coupled with the effect of a December proposal to halt supply inflation, RAM’s scarcity sparked huge interest from community members and developers, driving RAM prices up sixfold from historic lows as its scarcity and value was recognized.
The tokenized version, Wrapped RAM (WRAM), provides even more capabilities than its namesake: it enables 1:1 tokenization without fees, the ability to move off-chain, tradeability on exchanges, multi-wallet usage and more. Because it unlocks far greater versatility versus RAM, WRAM has been credited with revolutionizing resource management and unlocking a range of possibilities both inside and outside of the EOS ecosystem.
A Bright Future for Hardware and EOS
With data’s central role in our lives only expanding, the demand for high-performance computing resources to process and store it shows no signs of abating. Something which bodes extremely well for not just semiconductor giants, but smart blockchain networks deeply focused on scalable performance.
The EOS Network Foundation (ENF) is particularly well-positioned, with RAM representing just one part of its stack. In Q1, EOS saw 387% quarter-over-quarter revenue growth driven by increased EVM gas fees and RAM trading volume.
The ENF has also pioneered groundbreaking infrastructure like exSat Network, a Bitcoin indexing layer leveraging EOS’s high throughput to enable indexing and state storage for BRC-20 tokens, BRC-721 NFTs, and other Bitcoin-based assets.
As our digital world continues its relentless expansion, the importance and value of powerful hardware and innovative blockchain data solutions will only grow. In our data economy, the commodity in highest demand may well turn out to be raw computational muscle.
