The advent of blockchain has taken the world by storm. Software developers are leveraging this revolutionary technology to change the way we perceive finance, cloud computing, social networking, and other such spheres. The Golem Project is one such application of blockchain technology that aims to create a global market for computing power.
What is Golem?
Simply put, Golem is a decentralised global supercomputer that can be accessed by anyone around the world. It comprises the combined power of users’ systems, ranging from individual computers owned by everyday users like you and I to large data centers. This decentralised network of computers is capable of performing several crucial tasks like CGI rendering, developing machine learning models, scientific computing and many more.
To understand the Golem Project better, you can think of it to be like Airbnb. Airbnb transformed the hospitality industry by enabling common folks to put up their empty apartments and rooms for rent/lease to travellers. In the same way, the Golem infrastructure has enabled people to provide their hardware and software computing power to people in need who, in turn, can use this processing power for any application they want.
In the case of Airbnb, all transactions are settled in fiat currencies. With Golem, however, things are slightly different. Since Golem is essentially a decentralised supercomputer that is built on blockchain technology, performing transactions on the Golem network with ease requires a native cryptocurrency. This digital currency is known as Golem Network Token, popularly referred to as GNT.
As mentioned earlier, the computing power to the network is supplied by providers who could be anyone, ranging from an individual user renting out his idle CPU cycles to massive data centers providing their entire capacity. These providers will receive payments from requestors - people who are in need of computing power, in GNT. Owing to Golem interface, providers can easily set prices and decide on the chunk of resources that they are willing to rent out. The Golem Network is just like a marketplace for computing power.
Needless to mention, the market for computing power is massive. This is because up until now, large computational resources were directed to specific problems only, be it towards finding a cure for a disease, exploring outer space, or solving the mysteries of particle physics. However, there are many complex problems that haven’t been solved yet mainly because of insufficient computational power and high costs. The Golem Project addresses this very issue through its massive network of shared computing power.
With the help of Golem, an average user can get access to high processing power at the fraction of a cost. If a person is looking to perform complex mathematical simulations with ease, all he/she has to do is buy Golem tokens, join the network and get the task done.
Despite this revolutionary outlook, it is important to remember that Golem is still in its early stages. It has laid out a roadmap for different platforms it plans to launch, meant for specific applications. These platforms are Brass Golem, Clay Golem, Stone Golem, and Iron Golem. At the time of writing this article, only Brass Golem is operational and it focuses on only one application - CGI rendering. As for the other platforms, they will be operational in the future.
Coming to the supply of GNT, the maximum number of Golem tokens that can ever be is 1 billion. Of these 1 billion Golem tokens, 180 million GNT are held by the Golem Team and Golem Factory, while the remaining 820 million tokens are in circulation.
Where to buy Golem (GNT)?
Golem Network Tokens are available on some of the leading cryptocurrency exchanges across the world like Bittrex, Coinbase, Cex.io, Exodus, Poloniex, et cetera.
Golem’s transaction system is based on Ethereum. Therefore, any wallet that supports Ether tokens is compatible with GNT. The best way to store your Golem tokens is in a hardware wallet like Nano Ledger S and Trezor. You can also consider software wallets like MyEtherWallet, Exodus, Jaxx, et cetera.
It is not possible to mine Golem. The only way to earn GNT is by renting out your computing power on the Golem network to requestors.
Golem Price Trends
Golem tokens have followed a path similar to every other virtual currency in the cryptocurrency market - ups and downs based on speculations. The coin has already witnessed two bull runs with the last one taking place between December 2017 and January 2018. It is worth noting that it was in the same period that Bitcoin and other major players like Ripple and Ether hit their record-highs.
At the time of writing this article, 1 GNT is worth approximately $0.29. From a pragmatic point of view, it is hard to imagine GNT incurring another bull run, considering that go
Golem Cryptocurrency Recent News and Development
- There have not been many updates in terms of development of the Golem project. However, considering the price of its inherent cryptocurrency - GNT, the token has incurred two bull runs in 2018, both of which differ greatly in magnitude.
- The first one came through the months of December and January, when the token made astronomical gains to surpass the $1.10 mark. This rise was shortly followed by a substantial drop in its value and consequently, it lost close to 50% by the end of January 2018 to dip below the $0.50 mark.
- The price of the GNT token spiked once again - this time through the months of April and May. Once again, the cryptocurrency gained as much as 100% to reach its previous levels above the $0.6 mark. However, the tokens failed to find momentum at those levels and as a result, they moved on to shed those gains gradually over the course of the next few months.
- This gradual fall in the value of GNT has led to the token being valued at close to $0.16 as of early November.
Risks associated with investing in Golem
At the end of the day, Golem is a cryptocurrency. Being a volatile investment instrument, it is not safe to invest a considerable sum in it. Furthermore, the legal barriers that cryptocurrencies face is another factor to be considered. Instead, you can look into other options which are far more safe like mutual funds . A small sum in a good mutual fund every month can go a long way in generating excellent returns in the long-run.
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