Golem (GNT)

Last Updated on May 26, 2020

It’s amazing the impact crypto projects have over a broad spectrum of industries. The financial and economic industries come first to mind but what about the film industry?

Have you thought about the amount of computing power and expensive hardware that production companies spend on Computer Generated Imagery (CGI) to create one film only? While giant companies can certainly afford this, what about low budget and private film productions?

The solution comes in the form of a decentralized network that supports the exchange of computing power among users for just a fraction of the price.

In our guide today, we’ll give the details of this promising project. Let’s get started!


Golem (GNT)

$ 0.093316


Buy GNT on Binance

What’s Golem?

Wouldn’t it be great if you could borrow someone’s computing power or rent yours to someone in need? These services are already on offer by some cloud computer giants like Amazon, Google, and Microsoft, but what about the freedom and privacy, not to mention the lower costs, you can get from a decentralized platform offering the same services?

This is exactly what Golem is all about!

Golem is the first decentralized supercomputer network in the world that congregates the computing power of its users. It was launched in 2016 in Poland, by four co-founders: Julian Zawistowski, the current CEO, CTO Piotr Janiuk, COO Andirzej Rejulski, and Aleksandra Skrzypczak, the lead software Engineer.

The white paper was published in November 2016, where Golem’s features were thoroughly explained:

Combined with flexible tools to aid developers in securely distributing and monetizing their software, Golem altogether changes the way compute tasks are organized and executed. By powering decentralized microservices and asynchronous task execution, Golem is set to become a key building block for future Internet service providers and software development. And, by substantially lowering the price of computations, complex applications such as CGI rendering, scientific calculation, and machine learning become more accessible to everyone (p.3).

There are two types of users on the platform: requestors, i.e. those who are in need of computing power, and providers who rent out that power. These users can be anyone from individual users owning a personal computer or application owners to a company or data center.

How Does Golem Work?

The Golem company considers itself to be the backbone of the decentralized market for computing power. It has the function of both an Infrastructure-as-a-Service, or IaaS, and Platform-as-a-Service, or PaaS.

The whole Golem ecosystem is connected through an Ethereum-based transaction system that unites requestors, providers, and software developers and allows them to make direct payments to one another.

Using the network, requestors create different “tasks” for which they require a supply of additional computing power. Another great thing is that requestors can just as easily become providers themselves and earn some extra coins by renting out their own hardware.

The providers browse through different offers and choose one they like. They can rely on Golem’s reputation system to find a reliable network member.

Next, they suggest the price amount they’re willing to accept for renting out computing power. The requestor can choose to accept or decline the offer. If he/she accepts, the files are transferred via IPFS.

When the task is completed, the task manager broadcasts the information to the network’s nodes for verification. If the execution went well, Golem’s payment system receives the order through a smart contract and executes the payment.

Golem offers two additional features called an Application Registry and Transaction Framework. Golem allows software developers to come up with their own solutions, add-ons, dApps, etc, to keep the network growing and adds them to the Application Registry.

The Transaction Framework consists of a list of requirements for application developers. They need to satisfy these preconditions before they include a transaction model in their app.

Our favorite exchange for this coin

Binance Logo

Get Started

What’s GNT?

The Golem network has its own native token called the Golem Network Token, or GNT, created in the ICO when 820,000 ETH was raised in under half an hour. GNT is used for the following:

  • Payments made by requestors to their providers.
  • Compensation for the software developers’ applications.
  • Payments on the Application Registry and Transaction Framework for various services, once they’ve been implemented.

Golem’s Longterm Vision

We believe the future Internet will be a truly decentralized network, enabling users to securely and directly exchange content, without sharing it with corporations or other middlemen. Accordingly, Golem will be useful not only to compute specific tasks, but also to bulk-rent machines in order to perform operations within a self-organizing network (p.6).

To arrive at this level, Golem anticipated the simultaneous development of other technologies that have been gaining in popularity recently. For example, the development of IPFS/Filecoin and Swarm as data-sharing technologies.

Next, there’s the need for greater blockchain scalability. Golem is positive that in the near future, Ethereum will find a way to achieve high-level scalability and support for micropayments.

This can have major implications for Golem, as the platform can become the top provider of computing power for both small and large decentralized applications.

About The Author

James Page

James Headshot

James is the main editor. With a passion for finance and anything blockchain, cryptocurrency is right up his alley. He's responsible for most of the content on the site, trying his best to keep everything up to date and as informative as possible.

Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided.