The Golem Network Token (GLM)

The Golem Network Token (GLM) is an ERC-20 utility token that powers the Golem network – a decentralized peer-to-peer marketplace for computing power.

Overview

The Golem network enables users to buy and sell computational resources using GLM tokens. Users who need extra computing power to run resource intensive applications like machine learning or graphic rendering can use Golem to tap into the unused computing resources of other users on the network.

The Golem protocol is built on Ethereum as a series of smart contracts that facilitate transactions between resource requestors and providers. Payments are made directly from requestors to providers using the GLM token.

How Golem Works

The Golem network functions through the interaction between three types of users:

  • Requestors – Users who need extra computing power to run their applications. They create computation requests and pay for resources with GLM tokens.
  • Providers – Users who offer their spare computing resources in exchange for GLM token payments. The Golem software allows them to become providers.
  • Software developers – Developers who create software that runs on the Golem network. They publish their software to the Golem Application Registry.

To make a request, the requestor chooses an application from the Application Registry along with specific parameters for their job. The Golem network software breaks the job down into smaller computation tasks and distributes them to providers based on reputation and price.

When the job is finished, the provider nodes send results back to the requestor who pays them directly using GLM tokens according to smart contract mediated terms.

Unique Aspects

Golem offers a decentralized alternative to centralized cloud computing providers by enabling a peer-to-peer market. Key benefits include:

  • Lower Cost – Prices are set by providers based on demand, not by a central company. This leads to lower prices.
  • More Control – Requestors choose exactly what resources they need for their specific application.
  • User Run – There is no centralized third party controlling or limiting the network.

GLM Token

As an ERC-20 token, GLM relies on the underlying Ethereum network for transaction processing and security. All transactions are immutably recorded on the Ethereum blockchain.

The GLM token incentivizes the provision of computing resources by allowing providers to earn GLM for sharing their spare computing power. It also allows software developers to earn GLM by publishing useful applications to the Application Registry.

The total fixed supply of GLM is 1 billion tokens. New tokens can not be created. GLM for provider rewards and developer incentives come from a rotating community fund allocated during network launch.

Future Development

Long term goals for Golem development include:

  • Support for additional computation tasks beyond CPU and GPU like database, network, and memory intensive jobs.
  • Further tools for requestor workflows
  • Reputation management improvements
  • Enhanced cybersecurity protections

Overall, Golem aims to become a fundamental building block of Web 3.0 by providing the computational power needed for the decentralized applications of the future.

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