Alex Sunnarborg is the founder of Lawnmower, a blockchain investing and market data platform founded in 2015. Here Sunnarborg takes an in-depth look at the imminent crowdfunding effort by Golem, an ethereum-based market for computer processing power, which launches today.
This publication is not intended to constitute investment advice. Please consider all blockchain investments with caution.
Often described as “Airbnb for computers”, the Golem team intends to use the funding to build out a network for renting unused computing power (CPU or GPU cycles) amongst users, existing as decentralized, open-source software on the ethereum blockchain.
As a two-sided market, Golem allows users to either:
- Sell unused computational resources (CPU or GPU time) to others, or
- Buy unused computational resources (CPU or GPU time) from others.
As consumers’ and businesses’ requirements for processing power differ greatly, Golem looks to take advantage of the varying needs of end users and tasks to create an alternative cloud computing network and market.
As an example of the stark contrast in computational needs, imagine someone who uses their computer primarily for Facebook and email as compared to someone who frequently uses one for work or research related to resource-heavy fields and tasks like high definition image rendering, stock market simulations and back-testing, DNA analysis, machine learning or big data.
The Facebook and email user likely uses their computer’s CPU or GPU to nowhere near their capacity, and could use Golem to sell processing time directly to a user who likely often needs to shop around for additional computational resources during periods of heavy analysis, and currently may turn to services and corporate giants like Amazon, Google, Microsoft and IBM.
The marketplace is anticipated to include individuals, organizations, data centers, and more, and allow for complete flexibility and customization for both buyers and sellers on terms including price, time or task, and amount or percent of resources.
The upcoming crowdfunding is for a token on the ethereum platform called the Golem Network Token (GNT), intended to be core to Golem and “ensure flexibility and control over the future evolution of the project and attributed to a variety of functions in the Golem network following the first major release” (including being the only type of payment permitted for buying computing resources).
The crowdfunding for GNT will last three weeks, or until 820,000 Ether (ETH) is raised. If less than 150,000 ETH are raised in three weeks, the crowdfunding will be deemed a failure and the ETH will be returned to the original owners.
Article Source: http://www.coindesk.com