What is Golem (GNT) in simple words


2019-08-27 00:00:00:

Golem (GNT) is a decentralized computing network with its own digital token. The goal of the Golem project is to create a single global market for computing power, where all existing computing devices are united in a peer-to-peer environment. Golem offers users two types of services - infrastructure and platform. Using the Golem application, users have the opportunity to buy and sell the necessary computing power for the internal cryptocurrency. In this system, there are suppliers of machine resources and tenants who need a certain computing power for a quick and budget solution of urgent problems. By joining the specified platform, the supplier is obliged to designate the allocated IT resource in the form of a processor core, RAM memory or hard drive space. For the lease of the provided capacity, the supplier necessarily receives passive income, the amount of which is calculated based on the result of solving the problem. Such a reward can be either a few coins or an impressive amount of GNT. Internal transactions in the Golem app are based on Ethereum technology with smart contracts, which provides automated payments directly from the applicant to the supplier and software developers in the form of a 5% commission.

Golems range of applications covers many areas:

  • website creation and computer graphics processing;
  • cryptographic encryption of mining pools;
  • business forecasting;
  • advanced scientific research;
  • development of paid microservices;
  • educational programs for artificial intelligence.

Golem History (GNT)

The founder of Golem is Julian Zawistovski, a fan of blockchain technologies from Poland. He is also known as a blockchain platform consultant for the Hoard video game empire. Having set up his office in Warsaw, he and a team of like-minded people outlined a long-term plan for the development of a full-fledged Golem project. The developers in the person of Petr Janiuk, Alexander Skshipchak, CTO Andrey Reguliski, and protocol architect Alex Levirington showed their creativity and took the key concept of the board game Dungeons & Dragons as a basis for the plan. Its essence lies in the designation of all stages of development with game names of periods: 

  1. Copper Golem or Brass. In the summer of 2016, the first alpha version of the project was launched under the designated name. This release included the use of two tools Blender and LuxRender for solving problems in the field of graphics processing, the ability to transfer files and the presence of a reputation system. The project developers held a 30-minute ICO in the fall of the same year, issuing 1 billion GNT tokens and collecting a profit of $ 8 million or 820 thousand ETH. On the Ethereum network, Brass started working only in 2018 and is still functioning in the beta version of Brass 0.18.2, despite the originally planned period of 6 months.
  2. Clay Golem or Clay. This version should have advanced user-oriented functionality in the form of equipping with a comfortable API for tasks, an application registry and synchronized decentralized supercomputers. The implementation of this stage was planned for a period of 15 months.
  3. Stone Golem or Stone. The planned tasks in the designated period are the platforms transition to the service of the Platform as a Service sample. In other words, a self-regulatory platform based on trust must be formed. The developers also planned to add a certification mechanism to the application registry and increase the stability of the entire system by forming a transaction framework. 24 months have been allotted for the implementation of this version.
  4. Iron Golem or Iron. It is considered the final stage of the project, where the ideal work of the previously implemented tools will be established, the setting of tasks in an automated mode through the Golem Library and a reliable security system that prevents fraudulent attacks. The developers take 4 years to implement this version.

According to the developers, such a development of the project in the long term will make it possible to create a decentralized microservices platform at the global level, acting as the "Internet of tomorrow". 

Distinctive features of Golem (GNT)

The new digital asset has the following specific features:

  1. Peer-to-peer network, which implies the use of P2P Peer-to-peer architecture to ensure decentralization and scalability of the project. The system searches for nodes and guarantees the relationship between them. For authentication purposes, each connection is assigned an encrypted code.
  2. Solving problems. Virtual technology guarantees ultimate safety by transferring the solution of problems from the nodes of the system to separate computational-type units. At the same time, the suppliers directly decide on the types and sizes of leased facilities.
  3. Reputation system. The prestige of a node decreases under the condition of inappropriate behavioral actions and increases due to successful transactions. Such a mechanism initiates the desired behavior of nodes in a decentralized environment, eliminating the focus on control authorities.
  4. Differentiation of types of tasks. Golem opens up the possibility for users to independently recognize the type of task using a set of transaction requirements and libraries for high-level programming languages. Then the system distributes the assigned tasks within the network of computing units.
  5. Openness to progressive implementations. This suggests that the creators of Golem have the right to develop their own applications within the system, transforming them into commercial projects.

Golem advantages and disadvantages

Like any virtual platform, Golem has advantages and disadvantages.

Prerogative advantages of the project:

  • versatility and wide applicability for solving problems in any direction;
  • simplicity and availability of the application, which requires the elementary installation of the necessary program on a PC;
  • decentralization, ensuring the safety and reliability of work without interruptions due to the use of a base in the form of the Ethereum blockchain , as well as the refusal to be tied to the central core or critical points;
  • scalability due to the growth in the number of computer aggregates connected to the network;
  • confidentiality of computing operations due to the inability of the supplier to find out information due to the isolated execution of data processing on a virtual computer using special encryption using Intel SGX technology;
  • the beneficial interaction of three categories of users in the form of developers, suppliers and customers through collaboration in a peer-to-peer architecture;
  • an experienced team of professional developers who competently popularize the main concept of the application and increase the relevance of the system as a whole;
  • consistently leading positions of branded crypto in the TOP-50 of the largest digital currencies.

Minor flaws in the project include:

  • relatively small number of users on the network;
  • slow launch of a virtual project, a significant delay in the planned implementation schedules for the stages of system development.

How Golem works

Considering what Golem is, one cannot but dwell on the principle of cryptocurrency operation. So, Golem is a P2P platform that is created and operates on the basis of the top Ethereum cryptocurrency. There are three groups of participants in the system:

  • customers;
  • suppliers;
  • software developers.

The functions of each group are different. Customers are focused on performers, giving them a specific list of tasks to be completed. Within the framework of large tasks, subtasks can be distinguished that have different costs and deadlines. When a deal agreement has occurred between the customer and the performer, the subtasks are automatically divided. Deals are negotiated when both parties are satisfied with the terms of interaction and the cost of the work performed. There is no limit on the number of subtasks.

Vendors offer platform customers their capabilities to perform all sorts of computations. Customers rent these capacities from suppliers using special software, then set a specific list of tasks for the executors.

We have already said that subtasks are distributed automatically among compute nodes, which are software vendors. Platform users have the opportunity to change their status, acting as suppliers, customers, and performers. All work done is paid for with the internal currency of the system - Golem.

The third group of participants - software developers, make sure that the system is functioning correctly, there are a minimum of failures and bugs. They are also responsible for the development of new software, applications and programs that would help make the platform better, more user-friendly, more functional and more useful. They solve all the technical issues that Golem users have.

Plus, the system does not limit its improvement only to ideas and suggestions from developers. The platform allows visitors to register their own applications for sale. The author of the development sets a price for it and offers payment options. Users who are interested in the development can negotiate with the author, agreeing on mutually beneficial terms of purchase and sale.

If the user owns facilities that are temporarily not used, he can lease them. They can be used to solve a number of tasks:

  • performing scientific calculations in the field of mathematics or biology (most often this is the use of the Monte Carlo method or analysis of DNA strands);
  • CGI rendering is graphics processing to create impressive special effects, for example, in movies;
  • performing business analytical operations - graphing, analyzing a large amount of actual data, creating tables, etc.;
  • machine learning - processing a huge amount of data, which is later used to train neural networks;
  • cryptography - support for mining pools, factorization of huge numbers.

Now lets look at the mechanism itself, how Golem works.

So, you want to make money on the available capacities. How? It is enough to perform a few simple operations:

  1. Login to the Golem App.
  2. Analyze the available resources and decide which ones you want to rent.
  3. Give power to temporary use, enjoy everyday activities and recreation, while receiving passive income.

What does the Golem network look like to the customer?

The user opens the third beta version of the Golem Stone platform and views the available task templates. If the system does not offer anything suitable, the buyer can use the framework and write their own code for the task.

The fact is that the number of task templates varies depending on which version of the program you choose. So, in the first version there are only 2 templates - Blender and Luxrender. In the subsequent ones, the number of templates is added. The developers are actively working to turn templates into the Golem marketplace, with the ability for the user to independently create new templates that are maximally focused on completing a specific task.

So, the algorithm of actions is as follows:

  1. Choose a template.
  2. Add a task to the dispatcher, specify the time limits for its execution.
  3. The task data is sent to the network.
  4. Among the tasks, a supplier of capacities is selected, sending full information about it, including the price.
  5. Before agreeing to accept the proposed capacity, the user carefully examines the suppliers reputation and analyzes how best the price is set.
  6. If all the terms of the deal are satisfactory, this task is started.

Provided that all stages of the transaction are completed, the supplier through IPFS receives the requested resources and can directly start computing operations. When the computational processes are completed, the results are sent back over the IPFS network for the node to check them. You can choose a different number of nodes for checking, but it is important to do this at the stage of ordering.

The platform uses Ethereum smart contracts to make payment transactions. Moreover, the system encourages users who timely fulfill their obligations, awarding them not only the required coins, but also points to reputation.

In addition to the basic features that we have listed, Golem Network has several features:

  • transaction framework - a series of clearly defined requirements that are becoming relevant for users who want to create their own application;
  • The App Registry is a custom-built smart contract that is exclusively aimed at developers, allowing them to publish their own apps built on the Golem platform using its resources and tools.

Naturally, before starting to work in the Golem system, each user is interested in the main question: how safe is it and what guarantees can it provide? To protect the network, the following measures are provided:

  • complete isolation from computing operations of nodes and data;
  • development of components and software resistant to various kinds of DDoS and Sybil attacks, including modern ones;
  • the use of progressive ciphers to protect codes and system data;
  • development of a black and white list of nodes;
  • introduction of a reputation system for nodes and users, which helps to exclude unscrupulous users from the system.

Golem Functions and Practical Applications

The project addresses many of the challenges that will directly determine Golems bright future. In particular, I would like to dwell on the basic functions of the Golem:

  1. The transaction system is represented by a multi-agent structure that satisfies the needs of users who rent computing power from suppliers.
  2. Architecture - P2P (Peer-to-peer) provides scalability and decentralization. The golem communicates with each individual node in the system and supports peer-to-peer discovery. To ensure authentication and security, every connection is signed and encrypted.
  3. Problem definition - Golem has its own problem definition system and libraries to meet the needs of the most advanced programming languages. The golem automatically distributes each task to the computational nodes.
  4. Reputation - the system requires certain behavior from the nodes, since it does not provide for the functioning of controlling institutions. Therefore, nodes can determine the reputation of their peers: successful calculations lead to an increase in reputation, and incorrect behavior leads to its fall.
  5. Calculation of the task is carried out as safely as possible inside virtual machines with good isolation from external attacks.
  6. Transaction and application framework - the Golem Network application is a kind of store, the functionality of which allows you to distribute and develop your own software, as well as use the capabilities of the transaction platform to receive the desired reward format.

Practical application of Golem

Golem is a modern, demanded and very promising project that can find practical application in various spheres of our life. First of all, it is important for:

  1. Business. Using the capabilities of Golem, you can significantly speed up the process of processing large amounts of data and information, reducing enterprise costs. Plus, as part of the project, you can make stock market forecasts, draw charts, build informative charts and structure data.
  2. The golem has the ability to distribute a CGI rendering task in minutes, which will take days for other projects.
  3. MACHINE LEARNING. Helps to recognize human voices, phrases spoken in foreign languages, as well as images.
  4. Cryptography. Has the ability to run fully decentralized, full and large-scale puts of cryptocurrency intelligent systems. It can be useful when performing solid cryptolization tasks, as well as in working with cryptography.
  5. The science. The announced supercomputers can become a tool for a big breakthrough in the world of science. These are unlimited possibilities in the study of the human body, cells, microsystems, analysis of DNA and protein structure. The supercomputer may help find solutions to global problems, as well as cures for previously incurable diseases.
  6. Microservices. Launching multiple dapps and microservices will generate revenue from multiple sources.

Does GOLEM mining exist?

Golem emission is fixed. In the first block, a certain number of coins were issued and distributed as follows:

  • ICO - 82%, which is equal to 820,000,000 in coins;
  • Golem Factory GmbH owns 12% of all tokens, which is equal to 120,000,000 in coins;
  • development team - 6% (respectively, this is 60,000,000 coins).

In total, 1,000,000,000 coins have been issued, so mining in its classical sense does not exist.

But in the Golem system there is a variation of mining, which is observed when a computing node is launched into the network. The main task of these nodes is to perform computing tasks set by customers. It can be analysis of the DNA structure, plotting, tables of currency rate changes for traders, cluster analysis, processing large amounts of data, etc.

If a node, while working on a request, performs certain manipulations, GNT will be sent to your account in exchange. This is a kind of mining that can be applied to this cryptocurrency.

How to buy or sell Golem?

If you want to buy Golem, you will need to go to one of the popular crypto exchanges: 

  • Bitrix;
  • Huobi;
  • Polonyx;
  • Cryptopia;
  • NovaExchange;
  • Liqui.

This cryptocurrency is currently traded only in pairs with digital currencies such as Bitcoin , DOGE , Ethereum and USDT.  

Now lets look at how you can sell the Golem. To begin with, the most sought-after cryptocurrency you can get with Golem is Bitcoin. In addition, the following altcoins can be obtained for GNT crypto coins: Tether, Ethereums, Credo, USD Coin, Bitcoin Cash , XRP

You can sell Golem for cryptocurrency (not taking into account trading volumes) at a high price on such trading platforms as CredoEx, Mercatox and VinDAX. The lowest cost of GNT will be on the CoinPlace crypto exchange. If we take into account the average price of this crypto coin and the trading volumes, the most profitable rate is offered to users of the Mercatox, VinDAX and Ethfinex crypto exchanges. The lowest price for Golem (taking into account the trading volumes) is offered by the CoinPlace crypto exchange. Here, this cryptocurrency is sold the cheapest. 

If you are interested in selling Golem for fiat currency, you should go to one of these crypto exchanges: CoinZest, Korbit or Bitbns. Here you can exchange Golem for KRW, American dollars, Turkish lira, Indian rupees, AUD, THB at the best rate.

GOLEM rate to ruble

As of September 4, 2019, the Golem exchange rate against the ruble was 3.98 RUR per 1 GNT. During the day, the cost of this cryptocurrency increased by 4.59%. The market capitalization of the cryptocurrency was RUR 3,842,405,747. The data was taken from the site https://coinmarketcap.com/ru/. 

GOLEM rate to dollar

As of the date of this writing, the Golem rate against the US dollar was 0.060217 USD per 1 GNT. During the day, there was an increase in the value of the Golem by 4.59%. The market capitalization of this digital currency was USD 58,076,685.

GOLEM to EUR rate

Golem rate to EURO as of 04.09.2019 was 0.054587 EUR per 1 GNT. During the day, the cost of the crypto coin increased by 4.59%. The market capitalization amounted to EUR 52 646 515.

If you are an experienced trader and want to make money on changes in the GNT rate, you can use the services of a broker or go to one of the specialized trading platforms (for example, Libertex or MetaTrader 4). It is much easier to make transactions here than on most cryptocurrency exchanges. In addition, you will have the option to use leverage.

Where to store GOLEM

To store a coin, you can use one of two ways:

  • on the accounts of cryptocurrency exchanges;
  • on third-party e-wallets.

Storing a coin on an exchange has the following advantages:

  • ease of registration;
  • the ability to exchange and buy cryptocurrency without restrictions.
  • the possibility of withdrawal.

But this method cannot be called a reliable option. There are risks here: bankruptcy of the exchange, hacker attacks, account blocking, non-refund.

Golem does not have its own electronic wallet where you can store a coin. And it is currently unknown if the developers will create it.

You can use third-party resources to store Golem, for example, Ethereum Wallet; Jaxx; Exodus; Mist; MyEtherWallet.

How many GOLEM

The number of Golem virtual coins is maximum 1 billion. They were released immediately during the ICO. New coins cannot be generated, so it is not possible to extract them by mining .

To get Golem, users can only buy coins or exchange them for other types of cryptocurrency. You can also get Golem currency using other methods: investing in HYIPs, collecting on faucets, etc.

It is possible to make money on Golem if you rent out power.

Golem emission

The creators of GNT decided not to stop at a small number of crypto coins, but released one billion tokens at the same time. This increased emission of Golem seems to be justified for a number of reasons:

  • in this way, simplified block mining is ensured;
  • it takes less time to complete transactions with GNT;
  • the risks of performing shadow transactions, possible fraud with cryptocurrency are reduced.

Since the mining of the Golem is impossible due to the specifics of the structure of this cryptocurrency, users who earn money by mining cryptocoins are not interested in this asset. And this is one of the disadvantages of Golem, as it does not allow you to attract more potential customers.

What Golem provides

The Golem cryptocurrency is not backed by the Ethereum blockchain as such. All device interactions with each other occur directly between the nodes. However, it is worth noting that developers use this chain not only for their own GNT token, but also for the consensus algorithm.

This trading platform uses a mechanism to ensure the safe operation of users. It protects both suppliers and customers equally well. Its principle of operation is based on the integration of a reputation system for nodes. Inside the ecosystem, there is a structure called "Node reputation". Here, a "white" list is kept, in which the data of users with a good reputation and, accordingly, a "black" list is entered, into which information about unscrupulous participants in the system is entered. It should be noted that the reputation can both improve and become worse, based on the level of performance of the tasks set. Suggestions from users with long-term negative reputation are rejected by Golem. All tasks performed by users are not related to the main system, since they are processed on virtual computers. As for the original data, they are necessarily encrypted.

Golem future

Today, when the cryptocurrency market is globally correcting, there is a strong decline in the Golem rate, which is due to a number of factors:

  • the project development and launch process was lengthy;
  • the promises of the coins creators were grandiose, but they have not been realized until now;
  • the tasks we face are difficult to accomplish.

However, the coin remains one of the most famous cryptocurrency assets in terms of capitalization. Therefore, the probability of its growth depends on the growth of the entire market.

The project is promising due to such features:

  • large-scale plans of coin developers;
  • the main idea of creating a platform is of high value;
  • high demand for coins among users;
  • the project has unique capabilities and functionality;
  • the system is universal.

According to analysts, Golem is a good investment project with a long-term perspective. According to forecasts, in 5 years the rate of the coin should reach $ 0.31.

The Golem project has a promising concept. Analyzing the budget and market volumes, we can say that the coin will be in demand. To date, there are no successful analogues of Golem, so it is extremely difficult to give a real assessment of the coins prospects for the future. In addition, it should be noted that the developers have already had to deviate from their plans, which is far from the best sign for any cryptocurrency project.

Analyst forecasts

Analysts predictions vary, but most are success-oriented. An important role in this is played by the fact that Golem is a decentralized network that will never become monopolized. This is the technology of the future, and there is no doubt about it. The developers and many fans of the project foreshadow a bright future for Golem, focusing on the fact that the project can replace all data centers, while working more accurately and quickly. Naturally, Golem has many competitors, especially given the fact that the project was created on the basis of ether, which ranks second in terms of capitalization. Regardless, the competition cant match Golem for price, plus theyre centralized.

An important moment in the history of Golem was April 2018, when the project developers announced that the alpha version of "Brass" is functioning on the Ethereum mainnet. This was an important achievement for the project and the company as a whole.

Now the company is working on the implementation of a number of important developments:

  • Stone Golem - high quality, functional version that will be used for application development (stone golem);
  • Clay Golem - beta version of the application that allows you to interact with registries (clay golem);
  • Iron Golem is an extended version, which implies a significant increase in functionality, working tools and capabilities for the work of all groups of users on the platform (iron golem).

Immediately after the launch of Brass Golem, a bounty program was offered to testers and developers. After successfully passing the test stage, the company plans to launch a universal program in the form of a public computing cloud.

The next version is called "Clay". This is another leap forward towards improving the design. Clay are decentralized, global, ultra-powerful computers that integrate with computational synchronization, thereby significantly empowering users and allowing transactions to be completed much faster.

After the launch of Binance and the listing on social networks of the GNT token, the companys assets increased by 45%, reaching the rate of $ 0.64.

Most analysts agree that Golem is a very promising project, as it is useful to users and has a clear concept. We believe that the Golem rate will only increase, and the amount of investment in the coin will grow.

The project is valuable for users - and this is a fact. Plus to the reputation is added by the fact that the project is headed by Julian Zawistovski - an advisor to Hoard (the largest blockchain platform in the field of video games).

In the future, Golem developers plan to create a decentralized platform for microservices, which will become the "new Internet of the future."