Golem cryptocurrency (GNT): history of creation and technology features

Golem (GNT) is a decentralized computing power management system in the cloud. The developers also simplistically call it Airbnb by computer power. Network users can allocate free computing power to those users who need it and get paid for it in GNT currency.

Golem was introduced in 2015 as a decentralized service for mediation in the distribution of computing power on the Internet. In this sense, Golem developers understand it as a networked supercomputer, the power of which can be accessed by users around the world. At any time – without dependence on third parties or companies.

Cryptocurrency, GNT

As for the topic of cryptocurrency, Golem, so to speak, puts the cart before the horse: computing power is considered the decisive trading value in the Golem network. And the currency, called GNT, is only a means of reward and exchange.

The basic idea of trading resources online, as in a free market, is by no means new. Systems that regulate heating in a building. For example, because individual components request power and negotiate it with their colleagues in a market economy, have been around for many years. Golem extends this concept to the entire Internet using a marketable computing power resource.

How does Golem work?

Golem network members are initially requesters, that is, users who need computing power for the application. Requesters receive the requested computing power from suppliers. These are all network participants, from individuals with PCs to computer centers with supercomputers. Whose computers are not working at full capacity and can thus provide computing power. Golem mediates the transfer of computing power to requesting parties and pays suppliers in its currency, GNT.

blockchain concept illustration in 3d, connected blocks in blockchain.

Use cases and examples of Golem application

  • Scientific research.
  • Rendering of complex computer graphics.
  • Data Analysis/Big data.
  • Machine learning.
  • Artificial intelligence
  • and much more.

From a technical point of view, Golem is based on the Ethereum blockchain, in which agreements on computing time and payment are concluded in the form of smart contracts. GNTs act here as so-called tokens, that is, coins that take on the character of a symbolic currency.

They function as a means of payment, but in a sense, they are only a meta-currency that is based on the Ethereum blockchain. They are not mined and exist only as a means of payment based on smart contracts. In this sense, the Golem network is used only for intermediary transactions for intermediary computing power, and not for payment transactions with its currency.

Blockchain, Unsplash License

Therefore, Golem is not a cryptocurrency in the true sense of the word but simply uses a third-party blockchain as a base for its payment transactions. Nevertheless, GNT is traded as a cryptocurrency and has shown impressive growth for a long time.

As a platform, Golem is still at a fairly early stage of development and must prove its full potential. If the system successfully survives its early stage and the distribution of computing power becomes a free market, then Golem will have a promising future.

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