What is Golem (GLM)?
Golem is a blockchain-based software that allows users to buy and sell computational power for various purposes, including artificial intelligence, cryptocurrency mining, CGI rendering, and other complex computations that demand great computing power. Golem represents a version of traditional services of the same kind that is controlled by users, and thus is decentralized and doesn’t depend on central authorities and third parties.
Golem allows users to sell their excess computing power to users who lack the resources to work on complex projects that require greater computational power for execution. Users who sell their resources are rewarded with GLM tokens in exchange for their service, paid by buyers on the network. The price depends on the amount of rented computational power.
Golem effectively provides a P2P market for computing resources by splitting tasks into smaller portions so the system can scale properly and form a unique user-dependent market. GLM is the utility token of the Golem network and it serves as the main store of value on the network. The GLM token incentivizes sellers to rent their computing power in exchange for GLM-based payment provided by buyers.
How Does Golem Work?
Golem works by processing requests and connecting buyers and sellers based on the request in question. On the Golem’s Network, users who buy computing power are known as Requestors. Requestors can create requests that the Golem system then processes, validates, and uses to connect the Requestor with appropriate resources. The system splits the task into smaller fractions of the initial task and rents the computing power from multiple users in portions.
The Requestor can have Golem complete the work for them, such as rendering CGI elements that require major computational resources. Instead of waiting for the work to be completed by traditional cloud computing service providers that can be rather expensive and slow, Golem splits the task and finishes the work almost instantly with fractions of computational power provided by sellers in the peer-to-peer market.
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The Requestor will use a task template to request resources for computing, with task templates containing all the information the Golem Network needs in order to carry out the requested task. Users can make a request with a pre-existing template or customize their own task template, which will be verified by Golem automatically. Once the Requestor receives the completed work, they make a payment to the Provider (seller) directly into a contract within the Golem system.
Who Are the Founders of Golem? (History of Golem)
Golem was created by Golem Factory, which was co-founded by Aleksandra Skrzypczak, Andrzej Regulski, Julian Zawistowski, and Piotr Janiuk. Golem Factory has existed since 2016 and was behind the development and the launch of the Golem Network in 2018.
The idea behind Golem is to provide computing resources for demanding projects without the involvement of central authorities. The team raised about $8.6 million in ETH in 2016 by selling more than 80% of the total supply at the time when the project was pitched.
Golem’s utility token was initially called GNT, but as the project’s new transaction framework is built on Ethereum’s Layer 2, ERC-20 tokens are required. In November 2020, Golem therefore began a token migration, in which original GNT tokens can be migrated 1:1 to the new ERC-20 GLM tokens.
What Makes Golem Unique?
Golem finds a way to speed up the process of buying and using computational power by dividing task requests from Requestors to Providers into smaller tasks. This system makes cloud computing services decentralized through automation and more cost-efficient thanks to the division of tasks into smaller fractions.
Golem also places the control over the P2P market into users’ hands, connecting Requestors and Providers based on the task template. Unlike traditional cloud computing service providers where a central authority sells the resources and takes the profits from users, Providers get paid directly for their services, so anyone can earn GLM as a service provider on Golem. The system incentivizes users to sell their computational power, while Requestors can get the resources they need at lower cost when compared with traditional cloud computing.
What Gives Golem Value?
Golem derives its value from its utility, technical capacity, and technology. The intrinsic value of Golem comes from the technology used to develop the network and to enable an automated P2P market that is secured and decentralized. The value of Golem is also noted in the cost of cloud computing services on the Golem Network in comparison with more traditional service providers.
The intrinsic value of Golem often doesn’t match the value of GLM in the market as GLM tokens are subject to frequent changes much like most cryptocurrencies. GLM can often be underbought or overbought due to the volatility in the market of digital assets.
How Many Golem (GLM) Coins Are There in Circulation?
There are currently GLM in circulation. Golem has a limited supply of coins, much like many other cryptocurrencies. The capped supply limits the number of tokens that can ever be minted, which acts as an anti-inflation mechanism. All GLM coins that should ever exist have already been created.
The number of Golem tokens in circulation multiplied by the current market price of GLM equals the Golem market cap. The market cap defines the rank of Golem in comparison with other cryptocurrencies, and also defines its market share and dominance.
Other Technical Data
Golem’s architecture facilitates the network’s capacity to execute a task template made by a Requestor. Every request will include the source code that should be run within the system, commands for splitting the task into smaller subtasks and sending it to nodes for approval, and finally the way the information on the ledger is verified for legitimacy.
Golem also incorporates a Transaction Framework and an Application Registry to allow users to choose from a greater number of tasks. The Application Registry can be compared to services like Google Play. It takes the form of a smart contract on Ethereum and it allows developers to deploy various tools and tasks templates for their projects.
The Transaction Framework contains components that users can choose to meet the transaction type for their needs, and may include off-chain payments channels and payout schemes.
How Is the Golem Network Secured?
Golem network uses a reputation system to keep the network safe from malicious participants. When a task request is completed, the Golem system rates users, which forms the reputations of Providers and Requestors. This is how the system detects malicious nodes.
Golem depends on Ethereum’s consensus mechanism, so the Proof of Work consensus mechanism currently keeps the Golem network secure and functioning properly. Golem Network should soon be secured with the Proof of Stake protocol once the Ethereum 2.0 upgrade is completed and the transition from PoW to PoS is final.
How to Use Golem
The ultimate goal of Golem is to provide a better environment for data sharing in the future ecosystem of Web 3.0 where users can have more control over the way they use the internet. Golem Network can be used to buy and sell computational power for all sorts of purposes, while developers can deploy tools and use task templates to diversify the market.
The GLM token is used in the reward system to incentivize sellers, i.e., Providers, and represents the main payment method and the store of value on the Golem Network. GLM can also be traded for a profit in the cryptocurrency market.
How to Choose a Golem Wallet?
As an ERC-20 token, GLM can be stored in any wallet that supports Ethereum and the type of wallet you choose will likely depend on what you want to use it for and how much you need to store.
Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of GLM for more experienced users.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of GLM or more novice users.
Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your GLM, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your GLM tokens without hassle. Storing your GLM with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling GLM, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
Golem coins were pre-minted, which means that all Golem coins that should ever exist have already been created, so the Golem Network doesn’t depend on miners, or on staking, to create new tokens. Golem is not a mineable coin, but it also doesn’t work on Proof of Stake.
While Golem leverages the consensus of Ethereum for transactions and inherits its Byzantine fault tolerant properties, the Golem Network also maintains resilience through economic incentives in the form of GLM and the reputation system.
Golem network is one of the most reliable P2P markets for buying and selling computing resources for various purposes, while the dev team plans to expand the network’s applications and add more functionalities to satisfy the future demand for computational power.
At the same time, Golem plans to become an integral part of the decentralized internet in the future and allows people with excess computing resources to earn by selling their computational power.
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How do I become a Provider?
Becoming a Provider means installing and running the Golem Provider Agent so that your machine acts as a Golem node. There is a pre-built Linux installation package available and Golem officially supports Ubuntu 18.04 LTS and 20.04 LTS. Instructions for setting up and running the provider can be found on the Golem website.
Can you build on top of Golem?
Yes. Applications ready to run on Golem can be published to the Application Registry. Projects already built on top of Golem include the Chess on Golem game, the CodePen-like app Golem SLATE, and DeML – Golem’s first machine learning training implementation.
How to buy Golem?
Buying GLM is as easy as visiting Kriptomat’s how to buy Golem page and choosing your preferred method of payment.
How to sell Golem?
If you already own GLM and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.
Golem price is subject to frequent changes, in great part due to the volatility in the cryptocurrency market. GLM is in constant flux and may change dramatically when it comes to the market price. A multitude of factors can influence the price of Golem, which is how GLM can rapidly dip or spike within a relatively short period.
As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, the price of GLM is also influenced by demand for computing resources and the popularity of the Golem project.
The current Golem price is EUR.
The 24-hour trading volume of GLM is EUR. GLM is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of GLM.
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