When it comes to keeping count of cryptocurrencies, you would be forgiven if you didn’t know how many there are out there. According to the data listed on CoinMarketCap.com, there are 1530 cryptocurrencies. These make up a total market cap of $472,623,849,809, of which Golem represents a market cap of $361,203,744 (data as of February 15, 2018) and now we ask the most FAQ: What is Golem and how does it work?
In this article, we explain what Golem is and what makes it worth mentioning alongside the top coins in the market. An understanding of how it works should help you make a decision on whether it is worth adding to your crypto portfolio for 2018-2019 or not.
However, the bottom line has been and will always be that the basic reference point for you as an investor, the cryptocurrency’s Whitepaper.
For a start, get this beginner’s explanation about the Golem coin.
Golem is an open-source and decentralized computing system that works as a global supercomputer. The network’s main aim is to integrate computing on the principle of a shared economy ecosystem, where individuals share resources and services for a fee.
The Golem technology brings together several computers and connects them so that they can share power over the blockchain. The power can be harnessed from a wide range of computers – from a laptop or home PC to a large data center.
When was Golem launched?
The Golem ICO took place on November 11, 2016. During the crowd sale, the Golem team distributed 1 billion GNT’s to raise 820 ETH. The entire coin offering managed to rais $8.6 million.
The Golem cryptocurrency
Golem Cryptocurrency uses GNT as its token currency. The GNT is an ERC20 type token, designed to give basic functionality to be used for payments on the Golem platform. It is used to pay providers as well as to incentivize software developers. You can get GNT either by buying it or as a reward for participating in the Golem network.
On Golem, you get an opportunity to earn GNT when you rent out your computer over the network. It can be your free RAM, idle CPU cycles or the free HDD. You can also rent out network bandwidth for another user to utilize and get GNT in return. Golem has earmarked its Brass protocol to facilitate the use of idle CPU cycles and RAM.
GNT currently trades at $0.432 (as of February 15, 2018)
The Golem App
The Golem network is an app that provides the ecosystem where computers all over the world connect and transact virtually with each other. It determines that there is much more computing power out in the world that is not utilized well.
Individuals or companies can use the app to provide computational power or request the network to allocate tasks to other nodes for processing. As such, the app connects these companies or individuals to others around the world, forming a worldwide supercomputer.
Fields like data science, business analytics, machine learning, and micro-services/dApps stand to benefit from dividing and distributing smaller tasks across several computers.
How does Golem work?
By seeking to be a worldwide computer, Golem has an elaborate yet simple to understand the concept. The objective is to have the whole world share its computing power. Golem will provide the platform from which tasks that require computing power will be able to connect to “idle” machines that would then help complete the tasks before being paid using GNT.
The Golem platform has two categories of users: requestors and providers. Requestors are those users who wish to utilize the Golem connection to have their tasks processed. On the other hand, a provider is an individual whose computer is used to handle the tasks distributed by the requestor.
GNT is used to compensate the providers. The requestor and the provider form a peer-to-peer network, which represents the Golem Network.
This is how it works…
- As a user, you will need to login to the Golem network through your Golem app. The network view interface opens up in two ways: network and tasks. A provider navigates the network window and sets the amount of computer power (in terms of their RAM, CPU and Disk space) Golem can use. Once that is done, the provider starts Golem which works automatically using smart contracts.
- The requester navigates the Tasks Definition Framework and uploads his computing tasks on to the Golem platform. Using the Golem desktop app, a user adds files or folders by browsing their system or dragging and dropping on to the task view.
- Tasks added should be in supported formats of Blender or LuxRender. After adding the file or folder, the requester proceeds to define it so that Golem links it to appropriate applications.
- At this stage, the user clicks on the Start Task button which allows the system to divide the main task into subtasks. The subtasks are then sent to the Golem network where providers process it.
- The network finds appropriate computers and distributes the given tasks. The number of provider computers can range from a dozen or so to more than a thousand, depending on the tasks.
- When the subtasks are broadcast on the network, provider nodes consider the set requirements and either accept or decline to process the tasks. If the provider accepts the task, they compute/ work out the result and submit outcome.
- Once the task is done, the framework executes the Smart Contract. It automatically calculates the amount of GNT due to each provider node and sends it to the user’s Golem wallet.
Who can use Golem?
Anyone with access to a computer can use the Golem platform.
Average users of computers- they usually become providers and earn money from allowing the computer to perform tasks on the network.
Heavy consumers of computer power- CGI professionals, crypto miners, scientists, and financial moguls… They become requesters.
Software developers/owners- those who have analytical packages, dApps, trading bots, and rendering engines… They can use Golem as a platform to distribute their software or sell it.
Golem is a novel idea that has the potential for worldwide adoption. For now, it is still a relatively an unknown cryptocurrency, though no other project of its kind exists. If the team behind it does their work, then this is definitely a cryptocoin worth to be added on your portfolio. Nevertheless, it should be remembered that cryptocurrency is still a tricky venture, invest only that which you can afford to lose.