What you need to understand about the Golem app from Ethereum
Following its live Mainnet launch in April 2018 on the Ethereum blockchain, the Golem project has sold all its GNT coin tokens in under 20 minutes and has raised a crowdfund of 820,000 ETH, worth around $340 million.
Launched in April 2018 after over three years of app development, Golem is a peer-to-peer market project set to create a global supercomputer by combining computers across the globe into a single Golem network (or GNT).
Following its live Mainnet launch in April 2018 on the Ethereum blockchain, the Golem project has sold all its GNT coin tokens in under 20 minutes and has raised a crowdfund of 820,000 ETH, worth around $340 million. Currently ranked 52 among cryptocurrencies with the most market cap, Golem Price is now around $0.28 with a market cap valued at around $234 million. To get an idea of its price value, As per the major cryptocurrency exchange CoinSwitch, the current Bitcoin Price suggests that currently, 1 ETH coin equals 0.073129 Bitcoin. That being said, ETH coins are extremely successful with the possibility to reach USD 600 by the close of this year, much like the spiking trends of a Litecoin Price Prediction charts this year.
As an investor, is it the right time to invest in GNT? To answer this, you need to first understand how the Golem app works and what is plans to achieve.
Understanding how the Golem app works
The Golem app works to utilize the unused CPU power of individual computers by renting it out for other computational purposes. Currently, this app enables the CPU power for creating computer-generated imagery (or CGI) using an open source computer animation software called Blender.
The Golem network basically connects the following parties:
Each of these computational tasks from the requestors are broken up into multiple subtasks and assigned to the providers. While the Golem app was not built on the blockchain, it uses the Ethereum blockchain for all interactions between the network nodes and for consensus on all GNT transactions. The project does face its share of limitations including the activity of splitting the computational task into subtasks and later reintegrating them into a single result.
According to Julian Zawistowski, the CEO and founder of the Golem app, each of these subtasks are sent over a global peer-to-peer network, are computed with the results returned to create a single computational picture. In return, all the providers are paid for allowing the use of their computers.
While the Golem project has a long way to go from building a global supercomputer, the Mainnet launch is the first step in this direction. Starting with integration with CGI rendering, the project plans to move on to more computer power-intensive applications involving machine learning and business analytics.Following its live Mainnet launch in April 2018 on the Ethereum blockchain, the Golem project has sold all its GNT coin tokens in under 20 minutes and has raised a crowdfund of 820,000 ETH, worth around $340 million.
Investing in GNT coins
The GNT tokens will be used as the primary means of transferring value from requestors to providers and even to the software developers involved in the Golem software development team. With the growing number of transactions on the Golem network, the market value and price of GNT token is expected to rise, thus resulting in a long-term price appreciation of the coin.
The increase in global demand for computational power and secure data storage makes the Golem project and GNT token a viable long-term investment for cryptocurrency investors. Provided the Golem development team does not run into any major hurdle, this digital coin has the required push to break the $0.3 barrier and even surpass the $1 mark in the years to come.