What is Golem?
Golem is the world’s first blockchain-based, decentralized and open source supercomputing network, where one user can rent the computational power of other users and pay via the native currency of the system, Golem (GNT). The Golem project can be very useful for industries where heavy computational power is needed, with 3D image processing being a prime example.
History of Golem
The Alpha version of Golem was released in August 2016. The main names behind Golem are Julian Zawistowski, Piotr Janiuk, Andrzej Regulski and Wendell Davis. Golem’s ICO was launched to collect 820,000 Ethers (~9 million USD) and the target was met within 30 minutes, making it a hugely successful ICO. The Golem token began trading in November 2016 and surpassed a market capitalization of $100 million for the first time less than 6 months later.
How Golem Works
Golem wants to build a decentralized supercomputer by tapping into the computational powers of their users. When a user wants to hire the computational power (the ‘supercomputer’), they need to pay for the power they is borrowing from the network. On the other hand, the users who are lending this power to the first user will be compensated, according to their contributions. All these transactions will be automated and use Golem (GNT) as the currency.
Golem runs on Ethereum network and thus, it makes good use of EVM and Smart Contracts of the Ethereum network to make the transactions within the network. There are several modes of hiring the computing power including per node, per hour etc.
Golem brings forward an interesting idea and it has several advantages over most other cryptocurrencies in that its goals are unique and not shared by many others.
- Endless Opportunity: With Amazon AWS (or other cloud computing networks) turning into a trillion dollar industry, Golem network can possibly grow very fast into a billion dollar industry.
- Full Featured Cryptocurrency: Golem (GNT) is a fully featured cryptocurrency which can be utilized like Bitcoin. Golems can be traded at many leading exchanges and it can be used to pay for services and products. It can also be converted into other cryptocurrencies.
- Smart Contracts: Golem utilizes Smart Contracts to rent and hire computing power. Thus, the lenders and borrowers don’t need to worry about paying or receiving funds. Everything will be done automatically and safely.
- Stability of Ethereum: Golem runs on the tried and tested Ethereum network which adds stability, safety and security to the project. It also ensures that Golem natively inherit all the advanced features of Ethereum, including Smart Contracts and EVM.
- Fully Decentralized: With the decentralization being the next big thing, Golem is on the right rack of providing high computational powers at low cost from a peer based system. The system is expected to gather high interests from the organisations and power users.