Golem is a tokenized, decentralized computer network that offers computing power at affordable rates to anybody who needs it.
Source: https://golem.network/
Cloud computing is the intermediate step for decentralizing the computer resources of the world. The way it works is that huge companies like Amazon build gigantic warehouses of computers and then rent off access to that power.
With Golem, you can decentralize the process. Rather than Amazon owning 100,000 computers and collecting all the profits, you have 100,000 individual people offering computing power.
The difference here is like the difference between iTunes and BitTorrent. One is centralized, the other is powered by and for the people. This article will go deeper into the technology of Golem, its impressive roadmap, the competition, and other considerations.
About This Series + Disclaimer
This post is part of a new series where I investigate each of the top 50 coins by marketcap (based on coinmarketcap.com's rankings on October 11, 2017). My goal is to help steem’s userbase become the most knowledgable blockchain community in the world.
Disclaimer: I am not an investment expert and will not be providing investment advice. I will teach you about the top 50 coins, and you can do what you want with that info.
What Golem Does
The introduction of this article gave Golem’s basic premise: Decentralizing the computing power of the world. We can rent out computing power the same way we went out spare bedrooms with AirBnB or spare cars with Uber.
”It’s like AirBNB, but for computers!”
The first use case for this technology is “Golem Brass.” This is an app, powered on a Golem testnet for the alpha, which offers extra computing power for CGI rendering. You can cut down hours of rendering to a few minutes by briefly renting out a bunch of extra computing resources.
Everything else relating to Golem is still in the development stage - you can’t do any other computing tasks yet.
Eventually you can imagine a service where any kind of computing exercise can be sent to the decentralized cloud. You could run AI algorithms to analyze data or render other forms of media like audio and VR. In other words you can do anything that computers can do.
A Detailed Roadmap
Most blockchain projects are in the early stages right now. There’s a lot of competition in the market to garner hype, which involves making big promises. That’s why so many projects are trying to change the world and revolutionize things.
This leads to a weird situation where everybody has big promises, and nobody has the execution yet, lol. It’s not ideal. In lieu of finished working products, the next best thing to analyze blockchain roadmaps.
A good project will have an organized and detailed roadmap. It’ll be realistic yet ambitious. Here is what Golem offers in their 2016 white paper:
Source: Golem White Paper
I like the elegance of this roadmap. You can easily see the order of events, the funding required for various tasks, and a general logic to the plan. The team has a real idea of how they can achieve what they are setting out to do.
The road map makes me more optimistic with Golem than most blockchain projects. It’s a job well done.
Competition to Golem
It’s worth mentioning a few blockchains I have already analyzed, which are direct (or nearly direct) competitors:
Siacoin is focused on storage now, but they have some overlap with the Golem model.
Kyber Network uses different language to describe their project, but it’s the same idea.
It’s a race to the finish. Who can build the network first and get a lot of people participating? Or will all of them fail? Lol, it’s hard to say for sure. The best thing any of these companies can do is keep their heads down and work hard on that final product.
Token Distribution Model
From the white paper, here is how the Golem tokens were distributed:
I’m impressed with the small % of tokens they reserved for themselves. This is a much more generous token distribution than most ICOs, and IMO, should be the standard.
This is a “one time” token distribution, ala Siacoin, where no new tokens are issued.
Seriously, 82% goes out to the crowdsale! That is great ICO management. I hope to see more tokens launched on this kind of percentage spread.
The Team Behind Golem
The real brains behind this operation are Julian Zawistowski and Andrzej Regulski, two software entrepreneurs who have been working together for nearly 10 years. Then there’s quite a few other team members and key developers playing a role in building this project. Let’s take a closer look at the key players:
all photos are from the Golem white paper
Julian Zawistowski, CEO
Julian’s experience in business includes his work building a consulting branch at a Polish economic think tank and then founding a software development company in 2013. That second company led him to work with a few blockchain projects, such as Factom, giving him the experience he would need to launch the Golem project.
Andrzej Regulski, COO
Andrzej’s experience is in running a consulting company where he worked with public officials to support entrepreneurial projects. He has been working alongside Julian ever since 2008 and founded the software company “imapp” with him in 2013. Andrzej brings a lot of business experience and perspective to the team.
Piotr Janiuk, CTO
Piotr’s interests are firmly on the cutting edge of technology. He has a history of being an early adapter to tech such as peer-to-peer file sharing networks and, later on, blockchain. His past experience includes working on popular video games like The Witcher 2 as well as other digital projects.
Market History
Golem has seen some ups and downs in its first year.
The token slowly accrued value in its first six months. I know I heard some hype around Golem and noticed the price ticking upwards in early 2017… but ever since late Spring, it’s been hard times for the token. Golem holders did not benefit from the altcoin spike of summer 2017 at all.
The technology behind Golem still sounds appealing. I think the hype bubble has popped for now, but it might be a good buy based on the value of the product. If they can push their product development forward more in 2018, the token could regain some of its lost value.
Final Thoughts
Golem is a cool token. Like many of the projects in the space of decentralized computing power, it all comes down to making the technology work.
Once somebody builds a functional blockchain with a real economy of computing power suppliers and users, they will reap some big rewards. Until that moment happens, it is all theoretical. Your support of Golem will have to come down to the development so far and your faith in the team.
What do you think? Do you have any experience with the Golem network?