What You Need to Know About Golem Coin
When getting into the world of cryptocurrency, there really isn’t a feeling out the waters with your toes option. Rather, you must go all-in and accept the vast, deep market that powers
One of the biggest growers in the cryptocurrency seen is Golem Network Tokens or GNT.
Otherwise known as Golem coin, this cryptocurrency system has already seen a 4,400% increase in value since its ICO in November of 2016. Upon being released to the public, the currency secured it’s $8.6 million funding in 29 minutes via Ethereum smart contract deposits.
Today, there are one-billion coins available for everyone, with over 800-million in circulation at any given moment of the blockchain. The total market cap of Golem coin is nearly $500-million, almost 60-times the first value. How did it grow to such a huge factor in the coin game, and what does this mean for the future of computing? To understand these questions, we must see how they started.
The Lowdown on Golem Coin
So, what exactly is Golem coin? To put it plainly, the currency is an Ethereum-based cryptocurrency. The whole point behind this coin is simple: allow computing power to be shared across the Ethereum network.
This means that all transactions are based on the Ethereum system, using this to settle payments between the providers, requestors, and software developers. For those unfamiliar, the requestors are the users and applications that rent out cycles of other peoples’ machines, who are the providers. No matter if you have a single PC or own a high-powered data center, the idea is sharing resources through the Golem platform, ultimately getting paid in GNT by the requestors.
Modeling a cryptocurrency like this enables software developers to capitalize on a system such as Golem. Because the main factor is applications and software, for computers to become shared resources, these developers enable most to monetize and distribute their programs on the Golem network.
To Obtain Golem Coin, You Must Understand the Software Behind it
As mentioned before, Golem coin stems from the GNT network, which is all powered behind
Massive, computer-intensive jobs provide the backbone of the system. Initially, the first software released was Brass Golem, which focused on a single use case: CGI rendering. This might seem like a small drop in the bucket, but every day, there are millions of people who use Blender and LuxRenderer to achieve CGI images and graphics.
It might go without saying, but creating computer generated images takes time and immense power. The average single-user computer can take up to six months, working for hours a day, to create a three or four-minute video. All of this is, at the time of use, taxing on your computer’s lifespan and components, while serving as a time-consuming part.
At the end of creating all the drawings or animations needed, you’ll have to combine everything into a usable file or video, and this is where even heavier taxing comes into play. But, this is also the part that Golem comes in handy. The whole process starts with a single person. Say there is a computer-graphics illustrator who needs to render an animation. He or she could purchase Golem Network Tokens to rent the needed computer power to complete the task.
Golem determines the best way to spread out the work. If, for instance, the best action is for 100 computers to work one-minute each, then each computer will receive one GNT as payment.
At the end of the day, the point behind Golem is simple: save time and allow your computer to last longer, by having other users provide a boost to your system.
There are Perks to Going for Golem Coin
Have you heard of Airbnb? The company started out in 2008 and is now home to a $30 billion market valuation. What does Airbnb have to do with Golem Coin though? Simple: the way Golem coin works is like people renting out their unused bedrooms or basements to others.
The whole Golem Network allows for multiples machines all over the world to interact and harness their computing-processing power together. In the age of technology, more and more people are becoming exposed to technology and the digital medium. Another reason that using the Golem network comes in handy is that the coin is accessible to everyone.
Overall, it looks to reduce the total costs found within any scientific research, big data analysis, computer rendering of graphics, and taxing editing applications. Now, this all might sound expensive from the get-go, especially once you consider the electrical and other factories into the cost, but renting your equipment can be cheap.
Golem’s pricing models start as low as $0.03, of which steadily increase based upon the complexity and timeframe that the job is needed to be completed. All your costs are calculated by GHz per hour, which is a metric that is based on the processing power of your computer.
Golem Coin Looks Towards the Future, Too
Sometimes with cryptocurrency, companies get lost in the present and don’t think about the future. With Golem coin, this isn’t the case, as the network is built on machines interacting with one another.
One of the ways the Golem Network looks to power said future is through machine learning. Exactly as it sounds, this goal could, potentially, allow developers and companies the tools necessary to train machine learning models.
On the other hand, Golem is, seemingly, continuing to expand the way its protocols work with flexibility and the strength of their platform. The idea is to expand the user base by integrating new cases to the network, of which are based on their ever-growing business partners. This also includes the technological partners, which is a huge part of Golem coin’s market. All of this is building towards creating Golem as a competitive source of cloud-based computing power, to create, test, and improve applications for numerous different developer and users.
Because the system is built on a person-to-person scale, work is done quicker with a bigger userbase. When users join the network, it’s up to them to contribute, which creates the scaling of resources. With more people comes more resource scaling, which creates a faster system for processing any computation.
But How’s the Security of the Golem Network?
As with most cryptocurrency platforms, the reason you’d look to them is for anonymity and potential appreciation. Along with those, security is a big issue with any digital-based product.
For Golem, no actual currency is traded on the network itself. As mentioned before, the entire network is handled on Ethereum, which uses a smart contract to trade GNT. That same computer-graphics illustrator from before will have their transactions recorded onto the Ethereum blockchain. This way, it keeps track of balances for all parties, or computers, that aided in rendering.
These transactions are all time-stamped onto the Ethereum transaction ledger, with new deals and blocks added almost every 15 seconds. Since there are 32,000 computers running Ethereum software at once, each receives a copy of the transaction once completed.
Thankfully too, Golem is person-to-person, meaning you, the platform, matches you up with the users of your choice, based upon the pricing model that you both agree to. This ensures that the network is decentralized and has scalability. Using this type of sharing method allows no one person, or group, can take full control and manipulate the platform.
Lastly, there is a reputation system in place that allows nodes to build-up a reputation, be it good or bad. This keeps the system honest, leading to a better experience for all.
Why Golem Coin Can Matter to You
Everyone wants to make an extra buck here or there, and the blockchain that is Golem coin looks to be lucrative to those who have a capable computer.
There are, of course, other services that allow for computer usage and farm performance, such as Amazon and Renderstreet. While these are viable alternatives, neither use cryptocurrency as the monetary form of payment, and with the way crypto is going, could lose traction because of this.
It will be interesting to see how the community grows, and whether said growth can happen both horizontally with more users, and vertically by gaining traction in different markets. The network contains a strong foundation for growth, especially considering the future of the market they’re in. This gives them a unique footing in the cryptocurrency trade.
Judging by the way the system has grown, it wouldn’t be a surprise to see the Golem software and market trading much higher than it is today.