Since 2008 when the first Blockchain was released, the focus has slowly shifted to developing support services. The main target is using the existing platforms and solving the main issues that have become common in blockchains released earlier. In this post, we will review one of these platforms – Golem.
What is Golem?
Golem is one of the latest Ethereum based projects and a blockchain asset founded in 2016 by Julian Zawistowski. The Golem team targeted using the network for renting unused computing power (both GPU and CPU) of users and decentralized open source system on the highly effective Ethereum blockchain.
When Ethereum team realized that they could not meet the fast growing list of services demanded by users, a brilliant idea was hatched; allowing other blockchains that provide additional services to use its platform. Now, Golem founder Julian Zawistowski and his team are building on this premise to create alternative cloud computing network and a separate market.
Golem is based on the argument that many are the people who rarely exhaust their CPU or GPU to full capacity. Golem technology allows people with this unused power to sell it directly to users seeking additional computational resources when carrying heavy tasks such as company analysis. Golem prices this power for both users and buyers based on the amount, time, and task.
How Golem Works?
Golem connects computers (nodes) in a Peer-to-Peer system that allows app owners and requesters to rent resources of other machines. This means that there are three types of users who can join the network; app developers/owners, the requester (those who need to rent computing power) and providers (people with unused machine powers).
The first step is getting an Ethereum based wallet that can allow you to transact Ethereum tokens. This is the wallet that will be used to make payment, receive payment, and even tokens for being on the network. Golem infrastructure uses Platform-as-a-Service model by deploying its dedicated software integration system to make operations by users easy.
While newbies might find it a little intimidating because one needs to remain focused on Golem while making transactions in Ethereum, things become easier with time. After signing up for an account on the network, the Golem system will review your available computing power and direct projects that require similar capability when the device is idle. It is a great way of earning some extra cash from unused computing power of your CPU or GPU.
If you are a developer, the network requires you to use the application Registry. This allows apps developers to publish their apps and liaise with end users who want them. Remember that the liaison happens in the highly encrypted model such that the interactions, payments, and requests only occur between nodes without revealing each other’s identity, location, or other details.
Main features of Golem
Golem Network Token (GNT)
Golem Network Tokens are Ethereum based and act as the main medium for exchange between participants in the Golem ecosystem. Requesters use GNT to compensate software developers and nodes for their devices usage. It is also used during applications and transactions in the framework such as deposits from software developers.
Unlike other types of tokens that entitle users to a certain percentage of the transaction fees, it is different in the case of GNT. Since there is no fee, the token is fixed at the end of every crowdfunding period.
This is a very illustrative case of Golem operation. Instead of using the expensive cloud-based services or waiting for individual devices to complete tasks, GGI artists will rent computing resources from other people to render images and other info quickly. In this case, the payment from a requester is relayed directly to the selected providers. Besides, when the device is idle, it can automatically accept tasks from other users.
The Golem application registry
This is a unique feature that is based on Ethereum Smart Contracts. The feature allows users to publish apps that can run on the Golem network. The main goal of the feature is providing developers with a reliable way of publishing integrations and reaching users in a decentralized way. Besides, it provides requesters with a pool of apps to look for what fits their needs. Because Golem is a decentralized network, the Application Registry is community driven.
P2P network architecture
The peer-to-peer architecture of Golem guarantees total decentralization and scalability. The architecture supports faster discovery and liaison between nodes. Every node is encrypted and signed with multiple layers to guarantee users of total security and authentication. The network is also embedded with multi-agent transaction support system to make it easy for requesters to get the anticipated computing power.
Pros of using Golem
- Golem provides an easy to use platform that makes people with unused GPU or CPU power to sell to requesters.
- The blockchain utilizes the highly effective Ethereum platform. This means that Golem team need not worry about the basic operation of the core blockchain. Rather, they only need to concentrate on their services.
- The Cryptocurrency is one of the most potential systems because it is headed by experts who have steered other top cryptos to success in the market today. The founders, Julian and Andrzej, have been deeply involved with blockchain technologies since the release of Bitcoin. They have helped Factom, Omise and Ethereum to reach the current highly reveled positions.
- The Cryptocurrency gives users in its community absolute control of the apps they make and even allows them to work directly with clients. When this model is enriched with direct payments between users and developers, the motivation to develop new and better applications will be very high. This is what has made Golem users remain optimistic the crypto’s future.
Cons of using Golem
Unlike other networks such as Bitcoin and Litecoin that have full blockchain platforms, Golem does not have its own. Because it is built on top of the Ethereum platform, it lacks full independence. Anything that affects Ethereum will also become a serious problem to Golem.
Golem network system is still under construction. While most of the features are impressive and demonstrate the capability to address a lot of problems in other networks, one can only wait and see the level of success over time.
Where to Buy and Sell Golem in Australia?
Crypto Currency for Fun recommends buying Golem at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Golem and they offer Instant Delivery or your coins right into your account.
Golem has finally managed to link Cryptocurrencies to fiat currencies and common daily activities directly. Unlike previous Cryptocurrencies that require users to apply complex mining tactics, Golem only needs you to have some unused computing power in the GPU or CPU. Though it is relatively new and operates as a layer on Ethereum network, it is one of the top platforms with the highest potential.