Ethereum Based Golem Has Gone Parabolic, But What on Earth Is It? – Trustnodes

Ethereum Based Golem Has Gone Parabolic, But What on Earth Is It?


It isn’t often the case that a project gets to raise $8 million one day and be valued at some $200 million a few months later, but that’s exactly what Golem has achieved, an ethereum based token that aims to literally create a worldwide supercomputer.

They have appreciated in value by 32% just today, rising to the top ten in market cap, surpassing Augur, after raising 820,000 eth late last year, valued at the time around $8.6 million.

Since then, eth’s price has gone up and up, with that $8.6 million now valued at some $60 million, but Golem investors have still gained 4x more than even eth’s incredible gains.

Golem’s price goes parabolic in anticipation of live launch – image from coinmarketcap

Many are wondering why it has risen so much with the answer probably containing a variety of explenations. On the surface, the team appears capable and scientifically minded. They have been testing an alpha for some time, with the project expected to go live in May. It has two components and they are unrelated.

The first and main component is the actual project. They facilitate the sharing of idle resources, such as CPU power or memory, bundle it together into one, then offer it to whoever needs extensive computer resources.

That includes “scientific research, big data analysis, graphics rendering, machine learning, AI… just about anything,” according to their website, with the main focus being on graphic rendering, presumably because that has most demand for this sort of thing. Golem says:

“CGI rendering is the first and very illustrative case of real Golem usage. Rather than using costly cloud-based services or waiting ages for one’s own machine to complete the task, CGI artists can now rent compute resources from other users to render an image quickly.

The payment from a requestor (in this case, a CGI artist) is sent directly to providers who made their resources available. In addition, when the artist’s machine is idle, it can itself accept tasks from other users.”

That sounds amazing. Getting all these idle resources together and putting them to use allowing whoever needs to tap them sounds a bit like a different level. That means it needs to prove itself.

They are to launch Brass Golem in May, if it’s ready, which is Golem’s first mainnet version with proper commercial functionality. That probably explains its sudden rise, with part of the attraction perhaps the fact that you get paid.

You can set the amount you wish to charge for your computer resources, with the CGI projects agreeing to your price or otherwise, in a competitive free market manner, paid by GNT, the ethereum based token, directly from the requester to the provider.

Initially, they were to have a flat 5% fee with some of it distributed to token holders, but that received much criticism so it seems they have scrapped it.

Now, the token holders will seemingly have to depend solely on the demand of CGI renders or other scientific projects, a demand which will very much depend on how the whole thing really works in practice and whether it is really more cost effective and convenient than alternatives.

That remains to be seen, but the alpha is going well we are told. Whether the live launch will do too, with its potentially increased scrutiny as price increases, only time will tell.

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