Golem (GLM)
Golem (GLM): A Decentralized Marketplace for Computing Power
Golem (GLM) is a decentralized protocol that creates a peer-to-peer (P2P) market for computing power. It enables individuals and entities, known as 'requestors', to rent out computational resources from 'providers' who share their unused CPU or GPU cycles. This creates a global, open-source supercomputer accessible to anyone, offering a cost-effective alternative to centralized cloud services like Amazon Web Services or Google Cloud. The network is designed to handle a wide array of tasks, from complex scientific research and data analysis to CGI rendering and machine learning model training.
The Golem network operates without a central authority, using a transaction system on Ethereum's Layer 2 for payments. This ensures that transactions are secure, transparent, and efficient. Requestors submit tasks to the network, and providers bid to complete them. Once a task is finished, the provider is compensated in GLM tokens. This model fosters a competitive marketplace where the price of computation is determined by supply and demand, promoting accessibility and reducing costs for intensive computational work.
Technology
Golem's technology is built on a P2P architecture that facilitates direct interaction between users. It is not its own blockchain but rather a decentralized application layer that leverages the Ethereum blockchain for its payment system. Initially an ERC-20 token on Ethereum mainnet, GLM transactions have largely migrated to Polygon (an Ethereum Layer 2 scaling solution) to reduce gas fees and increase transaction speed. The protocol includes an Application Registry for developers to deploy their software and a Transaction Framework to manage the negotiation and exchange of services between requestors and providers, ensuring cryptographic security for all interactions.
Tokenomics
The GLM token is the exclusive currency of the Golem network, serving as the medium of exchange for all transactions. It is an ERC-20 utility token with a fixed total supply of 1 billion tokens, all of which are in circulation. This fixed supply means the token is not inflationary. GLM is used by requestors to pay for computational tasks and by providers as a reward for lending their computing power. The token's value is directly tied to the demand for computational resources on the network. Unlike Proof-of-Stake coins, GLM is not used for staking to secure a network but for its utility within the Golem ecosystem.
Ecosystem
Golem is a key player in the Decentralized Physical Infrastructure Networks (DePIN) sector, which focuses on building real-world infrastructure using blockchain incentives. It competes with other decentralized compute projects like Akash Network (AKT), iExec RLC, and Render (RNDR). Golem differentiates itself with a highly flexible and open-source framework that allows developers to build a wide variety of solutions on top of its protocol. Its focus is on creating a general-purpose, censorship-resistant market for computation, positioning it as a foundational layer for Web3 applications that require significant processing power.
Frequently Asked Questions
Golem (GLM) creates a decentralized market for computing power. Its primary use case is to allow users to rent their idle CPU/GPU power to others for tasks like CGI rendering, scientific simulations, and AI training. The GLM token is the currency used to pay for these computational resources.
You can buy Golem (GLM) on major cryptocurrency exchanges such as Binance, Coinbase, and Kraken. You typically need to create an account, verify your identity, and then you can purchase GLM using fiat currency (like USD, EUR) or by exchanging it with other cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH).
Like any digital asset, investing in Golem (GLM) carries risks. Its value is linked to the adoption and usage of the Golem network for decentralized computing. Potential investors should research its technology, competition, and the growth of the DePIN sector. It's important to assess your own risk tolerance before investing.
GNT was the original token for the Golem network. In 2020, Golem migrated to a new ERC-20 compliant token, GLM, to align with Ethereum's evolving standards and enable integration with Layer 2 solutions. GLM is the current and only official token for the network. GNT holders were able to migrate their tokens to GLM.
No, you cannot stake Golem (GLM) in the traditional Proof-of-Stake sense. GLM is a utility token used for payments within the network. Its function is to facilitate the exchange of value between providers of computing power and requestors, not to secure a blockchain through staking.
Golem employs several security measures, including running computations in isolated environments (like virtual machines) to protect the provider's system. The transaction framework uses cryptographic principles to ensure secure payments. However, users are responsible for the nature of the software they run or accept on the network.
Golem's main competitors are other projects in the decentralized compute space, such as Akash Network (AKT), which focuses on cloud hosting; Render (RNDR), which specializes in GPU rendering; and iExec RLC, which also offers a marketplace for cloud computing resources.
To become a provider, you need to download and install the Golem software on your computer. After configuring the software and connecting your Ethereum wallet, you can make your computer's idle resources available to the network. You will automatically start earning GLM tokens when your machine is used to complete tasks.