What is ethereum based Golem? How does it work?

GOLEM

The aim of Golem is to create a worldwide super-computer that literally anybody in the world can access or rent.

This means that complex tasks that the likes of Pixar, IBM or Google can handle will become available to the masses at an affordable price, without any major investment in infrastructure for the individual or corporation wanting to use it.

Suddenly, complex computing tasks such as CGI (computer-generated imaging), machine learning and the power for artificial intelligence (AI) will become available to the whole world.

Imagine a biotech laboratory wanting to use the super-computer to work out the molecular structure of a new compound they had discovered or a YouTuber renting out the supercomputer for a few minutes to perfect a CGI technique for their latest YouTube clip.

Golem is a decentralized application (DaPP). Decentralized - means that not one person or company ‘owns’ the application (as is the current model). The computing power is spread over millions of computers worldwide with individual users or corporations agreeing to ‘rent out’ their computing power as much or as little as they desire.

As a computer owner, you will be able to rent out your computer’s processing power to the Golem network whilst you sleep – if you want to.

It is the use of millions of computers coordinated together that provided the immense computing power required for tasks such as movie rendering or artificial intelligence.

As a consequence that multiple computers are used, this builds resilience in the system so that there is no single-point of failure. If a few computers go down, that is not a problem. Also, the decentralized nature of the computing power means that costs should be kept as low as possible. There is no longer one or a handful of corporations that can charge whatever they want for your project.

Golem also works on the underpinnings of the Ethereum network. Remember, Ethereum is more than just a currency or a form of money – it is an entire network on which computer code, financial transactions and contracts can be placed.

Every task that occurs on the Golem network requires a form of Ether to be used.

With Ethereum, developers can create their own currency or Token for their network – based on Ether. The Golem network created the Golem Network Token (GNT). During the crowd-funding phase of the project the Golum team raised Ether from the public and converted them to GNT.

During the crowd-fund, 1 Ether was converted to 1000 GNT for up to the maximum of 820 000 Ether (at the time of writing; approximately $9 million).

The network has also set the maximum number of GTH that will ever be issued at 1 000 000 000 GTH.

The number of GTH will never change. This means that initial GTH investors own 82% of the entire GTH that will ever be issued.

The Golem team owns 6% of GTH and exactly 12% of all GTH has been set aside for the development of the project over the next few years.

GTH tokens are now transferable.

The Golem Project White Paper
https://golem.network/doc/Golemwhitepaper.pdf