Golem is a decentralized computing platform built on the Ethereum network which boasts the combined power of user’s machines to run computational intensive programs.
The team behind Golem plans on making their platform able to “compute almost any program you can think of”. From rendering video graphics to machine learning and big data analysis, the Golem platform aims to provide a user-friendly way to perform tasks by accessing a global network which would otherwise require owning a high-performance computer.
In this report, we look at the technology and investment potential behind the Golem Project. This includes the current market performance of GNT, the team behind the project, and the specifics of the technology and its proposed use case.
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The Golem Project describes itself as the “Uber for Computers”. Users are essentially renting out their spare computing power for payment directly in GNT. Both hardware usage and software usage is made eligible for payment using the Golem network.
Golem’s chief selling point seems to be decentralized marketplace infrastructure it intends to offer users. Because of this, it may be able to compete on cost over centralized competitor’s such as Amazon Lambda.
The main question for investors here is this: will Golem be able to capitalize on the cost-saving benefits that decentralization brings in order to compete with mature, centralized business solutions available today?
It is worth noting that the Golem project is still very much in its infancy. It will have to overcome several hurdles before it can compete with the likes of Amazon Lambda. Perhaps at scale, marginal cost savings could make Golem a viable solution for big data computations.
The installation is difficult and the technology remains relatively unavailable at the moment. However, upon a release of a basic UI and CLI, which is estimated to arrive sometime within 6 months, it is quite likely there will be a rush of users eager to test usability of the Golem network.
The Golem project represents an extension of the decentralized computing platform of Ethereum itself. As a global marketplace for computing resources, it may hold the potential to compete on a cost-basis with contemporary commercial solutions.
The Golem team is made up almost entirely of software developers and computer science professionals. Already, the team has attracted a handful of code contributors outside the core team. Many of these contributors remain active on GitHub and have committed a notable portion of code. This extended community development is a very positive signal for project legitimacy and peer-reviewed software reliability.
Since the conclusion of the crowdfund, the GitHub repository has seen consistent action. Commit patterns indicate the team works during the week and takes the weekend off – or simply does not push their commits to the GitHub repository.
The main contributions come directly from the Golem core development team, with the bulk of commits coming from software engineers Adam Banasiak, Marek Franciszkiewicz, and Paweł Bylica.
Notably, Pawel Bylica has experience working on the C++ implementation of the Ethereum software protocol.
The CEO and COO (Julian Zawistowski and Andrzej Regulski) have extensive experience in software development and consultancy. In 2008, after having worked at IBS together, the two decided to leave and form a software development company named Imapp. Imapp has been in business almost 4 years.
The team claims to have been following the development of the Ethereum project since late 2013.
Despite having a plethora of developer talent on its roster, Golem seems lacking in the marketing and PR department. Current job openings would indicate they are looking to bolster their communications sector.
The Golem Project first held its initial offering in November 2016 and concluded by raising a self-imposed crowdfunding limit of 820,000 ETH. 1,000,000,000 Golem network tokens (GNT) were created from this crowdfunding.
The GNT is a fundamental component of the function and performance of the Golem ecosystem. GNT functions as follows:
- Payment for network resource usage conducted exclusively in GNT.
- Necessary for interacting with application registry and transaction framework in order to validate network participation.
- General conditions for using GNT within the transaction framework will be set. However, specific parameters will be able to be defined within each software integration.
- No token creation or mining after the crowdsale.
The supply of GNT is limited to the initial 1,000,000,000 created during the crowdsale. GNT is built on the Ethereum platform, follows existing design standards, and is able to be managed using existing tools such as the Ethereum Wallet.
There is no traditional mining procedure on the Golem network. Rather, nodes compete to provide computational resources to paying users.
|Crowdfunding Participants||820,000,000 (82%)|
|Golem Team||60,000,000 (6%)|
|Golem Factory GmbH||120,000,000 (12%)|
GNT began trading on Poloniex, the industry-leading cryptocurrency exchange, on February 17th, 2017. After an initial phase of price discovery, the market has responded favorably to the offering.
Poloniex is one of only a handful of exchanges currently offering a marketing for GNT.
The project’s team has stated that its goal is to not focus on marketing initiatives and public relations in the initial phases, but focus on the source code repository and following their proposed development timeline. It would appear, this has had a positive reaction among cryptocurrency investors.
At the time of this writing, GNT holds a market capitalization of ~ $89,192M USD.
|Price||Market Cap||24H Volume|
The foundational value of GNT is as a fuel for the Golem network. Much like ETH, it is used to power computations within a decentralized economy of dedicated nodes.
A smart move for the risk-appreciative investor may be to buy into Golem while the market is still finding solid grounding in anticipation of the first basic UI and CLI release. The team estimates that this point will come sometime within the “Brass Golem” phase, or within the first 6 months after release. Our target for basic UI and CLI release is positioned sometime between August – October 2017.
Although it remains largely unproven, Golem may hold promise for investors with an appetite for risk and targeting a medium-sized upswing within the next 6 months.
There are as many different private key combinations as there are physical atoms in the known universe.