What is Golem (GLM)
Golem (GLM) is a cryptocurrency that serves as the native token of the Golem network. The Golem network is a decentralized peer-to-peer marketplace for computing power, which allows users to buy and sell computational resources in a distributed and decentralized manner. GLM is used as a medium of exchange within the Golem network, facilitating transactions and payments between requestors and providers.
GLM is an ERC-20 token, which means it is built on the Ethereum blockchain and adheres to the Ethereum token standard. It can be stored in Ethereum-compatible wallets and traded on various cryptocurrency exchanges that support ERC-20 tokens.
GLM serves several functions within the Golem network, including:
- Payment for computing resources: Requestors pay providers in GLM tokens for the computing resources used to execute their tasks on the Golem network.
- Incentives for providers: Providers receive GLM tokens as compensation for sharing their computing resources with the network.
- Governance and voting rights: GLM token holders have the ability to participate in the governance of the Golem network, such as voting on proposals and decisions related to the development and direction of the project.
- Reputation and staking: GLM tokens may be used for reputation scoring and staking, where providers can stake GLM tokens as collateral to participate in the network and earn higher reputation scores, which may increase their chances of securing tasks in the future.
GLM is an essential component of the Golem network, enabling transactions, incentivizing participation, and contributing to the decentralized nature of the platform. However, it’s important to note that the value and utility of GLM, like any other cryptocurrency, can be subject to market fluctuations and should be carefully considered before participating in the Golem network or trading GLM tokens.
The history of Golem (GLM)
Golem (GLM) is a decentralized peer-to-peer marketplace for computing power that is built on the Ethereum blockchain. The project was first conceptualized by Julian Zawistowski, Piotr Janiuk, and Andrzej Regulski in 2014, with the aim of creating a decentralized network that allows users to share and monetize their idle computing resources.
The Golem project held its initial coin offering (ICO) in November 2016, raising over $8 million in Ethereum (ETH) at that time. The GLM token was introduced as the native cryptocurrency of the Golem network, and it serves as a medium of exchange for transactions and payments within the network.
In April 2018, Golem released its first mainnet version called Brass Golem, which allowed users to start buying and selling computing power on the network. Since then, the Golem project has gone through several updates and improvements, with new features and functionalities being added over time.
In November 2020, the Golem project announced the launch of the Golem Network DAO (Decentralized Autonomous Organization), which aims to decentralize the governance and decision-making of the Golem network, allowing GLM token holders to participate in the project’s development and decision-making processes.
As of the knowledge cutoff date of this model (September 2021), Golem continues to be an active project with ongoing development and updates. It is important to refer to the official Golem project documentation or other reputable sources for the most up-to-date information on the history and progress of Golem (GLM).
How Golem (GLM) works
Golem (GLM) is a decentralized peer-to-peer marketplace for computing power that utilizes blockchain technology, specifically the Ethereum blockchain, to enable users to buy and sell computational resources in a distributed and decentralized manner. Here’s a high-level overview of how Golem (GLM) works:
- Requestors: Users who need computing resources for tasks, such as rendering CGI images, running simulations, or processing data, are referred to as requestors. Requestors create tasks and define the requirements for their tasks, such as the type of computing resources needed, the deadline for the task, and the amount they are willing to pay in GLM tokens.
- Providers: Users who share their computing resources with the Golem network are referred to as providers. Providers can offer their idle computing resources, such as CPU and GPU power, to the network and earn GLM tokens as compensation for providing these resources.
- Marketplace: Golem provides a decentralized marketplace where requestors and providers can connect. Requestors can submit their tasks to the marketplace, and providers can choose to accept tasks based on the requirements and rewards offered by requestors. Providers can also set their own prices for their computing resources.
- Smart contracts: Once a task is accepted, a smart contract is created on the Ethereum blockchain, which serves as an agreement between the requestor and the provider. The smart contract includes the details of the task, the agreed-upon price in GLM tokens, and other terms and conditions.
- Task execution: Providers download the necessary software and data for the task, and then use their computing resources to execute the task. The results are generated and returned to the requestor upon completion.
- Payment: After the task is completed, the requestor verifies the results, and if satisfactory, the smart contract is executed, and the provider is paid in GLM tokens. The smart contract ensures that the payment is made automatically and transparently, based on the agreed-upon terms.
- Reputation and staking: Providers can earn reputation scores based on their performance and reliability in completing tasks. Reputation scores can be used to increase the chances of securing future tasks. Providers can also stake GLM tokens as collateral to participate in the network and earn higher reputation scores.
- Governance: GLM token holders have the ability to participate in the governance of the Golem network through the Golem Network DAO (Decentralized Autonomous Organization). They can vote on proposals and decisions related to the development and direction of the project.
- Wallets and exchanges: GLM tokens can be stored in Ethereum-compatible wallets and traded on various cryptocurrency exchanges that support ERC-20 tokens.
Overall, Golem (GLM) works by creating a decentralized marketplace for computing power, where requestors and providers can connect, negotiate, and transact directly, using smart contracts on the Ethereum blockchain to facilitate secure and transparent transactions.
Can Golem (GLM) be trusted
As with any cryptocurrency project, the level of trust in Golem (GLM) depends on various factors, including its technology, security, team, community, and governance. Here are some factors that may help users assess the trustworthiness of Golem (GLM):
- Technology: Golem utilizes blockchain technology, specifically the Ethereum blockchain, to create a decentralized marketplace for computing power. The technology has been audited and tested by the Golem team and the community, and regular updates and improvements are released to ensure the security and functionality of the platform.
- Security: Golem takes security seriously and implements various measures to protect user data and transactions. For example, smart contracts are used to create agreements between requestors and providers, and payments are made automatically based on the terms of the smart contracts. However, like any blockchain-based project, there are inherent risks associated with smart contracts, such as potential vulnerabilities, hacks, or bugs, which could impact the security of the platform.
- Team: Golem has an experienced team of developers, researchers, and community members who are actively involved in the development and improvement of the project. The team’s expertise, credentials, and reputation can be assessed to gauge their ability to deliver on the project’s goals.
- Community: Golem has a supportive and active community of users, developers, and stakeholders who contribute to the project’s development and governance. A strong and engaged community can indicate trust in the project and its long-term viability.
- Governance: Golem has implemented the Golem Network DAO, which allows GLM token holders to participate in the governance and decision-making of the project. This decentralized approach to governance can be seen as a positive sign of trust, as it gives the community a voice in shaping the future of the project.
- Reputation: Golem has been in the market since 2016 and has gained a reputation as a pioneer in the field of decentralized computing power marketplaces. However, it’s important to conduct due diligence and research on the project’s history, track record, and reputation in the cryptocurrency community.
- Risks: It’s important to understand that as with any cryptocurrency investment or participation in a decentralized network, there are risks involved. These risks can include potential price volatility of GLM tokens, potential technical vulnerabilities, regulatory changes, and other unforeseen risks that could impact the project’s trustworthiness.
It’s essential to do your own research and assess the risks and benefits of using Golem (GLM) or any other cryptocurrency project. Consulting official Golem documentation, community forums, and other reputable sources can help you make an informed decision about the level of trustworthiness of the Golem project.
How to get Golem (GLM)
Here is a step-by-step guide on how to get Golem (GLM):
Step 1: Create a Wallet To store your Golem (GLM) tokens, you will need a compatible Ethereum wallet. You can use popular wallets such as MetaMask, MyEtherWallet, Ledger, Trezor, or any other ERC20 compatible wallet.
Step 2: Get ETH Since Golem (GLM) is built on the Ethereum blockchain, you will need some Ether (ETH) to pay for transaction fees and interact with the Ethereum network. You can purchase ETH from various cryptocurrency exchanges or peer-to-peer platforms.
Step 3: Choose an Exchange Next, you will need to find a cryptocurrency exchange that supports Golem (GLM). Some popular exchanges that list GLM include Binance, Huobi, OKEx, Kraken, and others. Create an account on the exchange of your choice and complete the necessary verification steps, if required.
Step 4: Deposit ETH to the Exchange After your exchange account is set up, deposit the desired amount of ETH from your wallet to the exchange’s ETH deposit address. This may involve generating a deposit address on the exchange and initiating a transfer from your wallet to that address. Wait for the transaction to be confirmed on the Ethereum blockchain.
Step 5: Place an Order for GLM Once you have ETH on the exchange, you can place an order to buy GLM. Navigate to the GLM trading pair on the exchange (e.g., GLM/ETH) and place a buy order at the desired price and quantity. Make sure to review and confirm the details of your order before submitting it.
Step 6: Withdraw GLM to Your Wallet Once your buy order is executed, you will see your GLM tokens in your exchange account. It is generally recommended to withdraw your GLM tokens to your personal Ethereum wallet for better security. Locate the withdrawal option on the exchange and provide your Ethereum wallet address to initiate the withdrawal. Confirm the withdrawal and wait for the transaction to be processed on the Ethereum blockchain.
Step 7: Manage Your GLM Tokens in Your Wallet After the withdrawal is complete, you should see your GLM tokens in your Ethereum wallet. You can now manage your GLM tokens in your wallet, such as sending, receiving, or holding them as desired. Make sure to keep your wallet’s private keys and seed phrases safe and secure to protect your GLM tokens.
Note: The process of buying GLM may vary slightly depending on the exchange and wallet you use, as well as any local regulations and requirements. Always follow the instructions provided by the exchange and wallet, and be cautious of potential risks, such as scams or phishing attempts.