Home Guides What is Golem? ($GLM)

What is Golem? ($GLM)

0
548
Golem
Golem

In the evolving landscape of blockchain technology and decentralized networks, Golem stands out as a pioneering force. Launched by Golem Factory in 2018, this network was born from the vision of providing expansive computational power without the constraints of centralization. Golem represents a significant stride in the world of Web 3.0, an era where user autonomy and control over the internet are paramount. 

This guide delves into the intricate world of Golem – exploring its origins, the mechanics of its operation, the unique aspects of the $GLM token, and how it’s poised to redefine data sharing and computing power in the digital age.

Background 

The Golem network, a significant innovation in the field of decentralized computing, was launched in 2018 by Golem Factory. This venture was spearheaded by co-founders Andrzej Regulski, Piotr Janiuk, Aleksandra Skrzypczak, and Julian Zawistowski, who established Golem Factory in 2016. The primary objective behind Golem’s creation was to provide an abundance of computational resources for intricate projects, thereby eliminating the reliance on centralized systems.

The concept of the Golem network was first introduced in 2016, marking the beginning of a new era in decentralized computing. During its initial phase, the team successfully sold 80 percent of the total supply of Golem’s native token, raising approximately $8.6 million in ETH tokens. This fundraising marked a significant milestone in the project’s journey.

In line with the evolving landscape of blockchain technology, Golem underwent a crucial transition in November 2020. The network’s new transaction framework, designed as a layer 2 solution on the Ethereum blockchain, required users to migrate from the original GNT tokens to the ERC-20 GLM tokens.

What is Golem?

Golem represents a groundbreaking decentralized platform, fundamentally changing the landscape of computational power usage. It is designed to facilitate a range of demanding tasks such as CGI rendering, cryptocurrency mining, artificial intelligence applications, and more. What makes Golem particularly appealing is its accessibility; even average users without high-end hardware equipment can leverage the platform’s capabilities for various tasks.

At its core, Golem functions as a marketplace connecting buyers and sellers of computational power. This setup allows individuals to earn passive income by renting out their unused computational resources. This decentralized approach not only circumvents the dependency on a single cloud computing provider but also empowers multiple participants by distributing control and benefits.

One of the critical advantages of Golem’s decentralized nature is enhanced data security. Users on the platform are safeguarded against data theft, a common concern in centralized systems. Moreover, the distributed network structure significantly reduces the risk of Distributed Denial of Service (DDoS) attacks, as hackers cannot easily target or take over a central server.

Golem utilizes two essential tools, Blender and LuxCoreRender, to offer high-quality CGI rendering services. Blender is a versatile tool used for a variety of functions including 3D modeling, animating, video editing, and motion graphics, among others. LuxCoreRender, on the other hand, is specialized in rendering the final output of projects.

Beyond rendering, Golem extends its capabilities to the gaming industry with an advanced game engine. This feature opens a world of possibilities for video game developers, artists, scientists, and indie filmmakers, democratizing access to supercomputing power. Golem’s platform, thus, stands as a testament to the potential of decentralized networks in transforming how computational resources are accessed and utilized.

How Does Golem Work?

Golem operates as a sophisticated computational network, seamlessly connecting various users who require or offer computational resources. The platform’s functionality is centered around a process that begins with a user known as a “requestor” seeking computational resources for specific tasks.

The Process of Requesting Resources

For instance, consider the application of CGI rendering – a task that can be both time-consuming and demanding on computing resources. Traditionally, CGI artists might rely on cloud-based services or their own hardware, which could be slow or costly. Golem offers an alternative by renting computing power from various providers to efficiently render images, and then returning the completed task to the requestor.

Architecture and Task Templates

At the heart of this process lies the “task template,” which contains all the necessary computational logic needed by the Golem network to execute the request. This includes the source code to be run, guidelines on how the task can be divided into smaller subtasks (and distributed among different nodes), and methods for verifying and compiling the results into a final product. Requestors have the flexibility to either use an existing task template or create their own. Once a request is submitted, Golem’s system programmatically works to fulfill it.

After the subtasks are completed, they undergo a rigorous verification stage to ensure accuracy and quality. The Golem client then amalgamates these subtasks into a cohesive final output, which is sent back to the requestor.

Transactions and Payments

In terms of transactions, once the requestor receives the completed task, the appropriate amount of GNT (Golem Network Tokens) is sent to a contract that automatically compensates the providers. This automated payment process ensures a smooth and efficient transaction between parties.

Reputation System

A key feature of Golem’s marketplace is its reputation system, which evaluates and grades both buyers and sellers. This system is instrumental in detecting malicious nodes and providing a reliable metric for routing tasks efficiently. For requestors, the reputation system assesses the promptness of payments and the accuracy of task descriptions. Providers, on the other hand, are ranked based on their computational accuracy and the successful verification of their completed tasks. This reputation mechanism plays

$GLM Token

users have greater control over internet usage – lies the GLM token. This token is not just the primary currency within the Golem Network but also a key component in establishing a more equitable and efficient environment for data sharing.

GLM as a Medium of Exchange and Incentive

GLM tokens play a vital role in the Golem Network, particularly in its reward system. They act as the primary incentive for sellers, also known as Providers, who offer computational power on the network. These tokens are used for various transactions within Golem, including buying and selling computational power and deploying diverse tools and task templates that enrich the network’s offerings. For developers and users alike, GLM tokens provide a versatile means of engaging with the network’s services.

Trading and Market Value

Beyond its utility within the Golem Network, the GLM token is also a tradable asset in the wider cryptocurrency market. This aspect offers an opportunity for token holders to potentially profit from trading activities, although it is important to note the inherent market volatility.

Intrinsic Value and Market Fluctuations

Golem’s intrinsic value is anchored in its technological infrastructure and the capability to facilitate an automated, secure, and decentralized peer-to-peer market. This value is also reflected in how Golem’s cloud computing services compare cost-wise to more traditional service providers. However, it’s crucial to understand that the market value of GLM tokens can often diverge from its intrinsic value due to the typical volatility associated with digital assets. Like most cryptocurrencies, GLM’s market price is susceptible to being underbought or overbought, influenced by the fluctuating trends of the digital asset market.

Conclusion

Golem’s journey from a mere concept to a functional, decentralized computational network epitomizes the innovative spirit of the blockchain community. It offers a glimpse into a future where the exchange of computational resources is as fluid and accessible as traditional currency transactions. The $GLM token, central to Golem’s ecosystem, not only facilitates these transactions but also serves as a testament to the network’s intrinsic value, derived from its technological prowess and potential to democratize cloud computing services. 

While subject to the typical volatilities of the cryptocurrency market, $GLM remains a cornerstone of the Golem Network’s vision for a more decentralized, user-empowered future. As Golem continues to evolve, it stands as a beacon in the Web 3.0 landscape, promising to reshape how we interact with and leverage the internet for computational needs.