Golem is a decentralized distributed computation network using Ethereum’s smart contracts as transaction system. It was created to replace the work that is currently done by centralized servers, computing farms or supercomputers. Using Golem anyone can sell or buy computational power in a decentralized manner and for a cheaper price than traditional cloud-based platforms, that offer on‑demand computing infrastructure, like Google Cloud Platform and Microsoft Azure.
The Golem Network can be used for Stock market simulations, Computer Graphics, Medical research (like protein folding), Artificial Intelligence and even cloud mining.
Golem allows buyers to perform computational heavy tasks that they could not complete with their own hardware, and sellers to monetize their idle processing power. Golem is comprised of nodes running the Golem App. Every node can be both a requester and a provider of computing power according to their needs, making Golem a prosumer’s market.
In order to sell or buy computing power, Golem users will have access a multi-agent trading system for matching users requesting computational power with its providers and vice-versa, meaning that there is no set price for computational power, and instead buyers and sellers will create or take trade offers much like an exchange market. Owners of the host machines will be able to decide how many CPU cores, and how much RAM and disk space they would like to share with other Golem users.
Since tasks can be split into multiple subtasks that can be as cheap as $0.01 or even $0.001 for some types of tasks, Golem will also provide an efficient probabilistic micropayment scheme, implemented using Ethereum, for remunerating users that share their computational resources, learn more about Golem’s nano payments.
“If task worth $8 was conducted by 400 nodes, then the payer would have to transfer $0,02 to 400 different users; For all existing transaction systems but Ethereum transaction costs would be comparable or higher than the total transaction value, additionally blockchain could potentially experience capacity issues.”
When a Requester (buyer) wants to use additional computational power, he will define computational tasks easily using Golem’s Task Definition Framework and libraries for high-level programming languages and then submit tasks requiring computing power to the Golem Net, that are then divided into multiple independent subtasks. Golem will then automatically distribute each task over the network of computing nodes, the providers. The providers (sellers) will perform the tasks on a Virtual Machine, using their spare computing resources.
The task computation in Golem nodes will take place inside virtual machines and will be isolated from the host environment for security reasons.
Golem will implement a reputation system to enforce good behavior of nodes without relying on any supervising institution. This will allow nodes to attribute a reputation rank to their peers.
In order to further fund the development of the Golem Network, an Initial Coin Offering will take place, in which a yet unknown amount of Golem tokens will be sold. Tokens sold during this ICO will pay dividends from the task fees charged on the network.