The Golem (GNT) distributed supercomputer could be the most disruptive blockchain project you have never heard of it.
To explain Golem’s ecosystem is a blockchain marketplace designed to let users rent out any amount of computing power. Theoretically, Golem could support any computer ranging from your desktop to a giant data center. Potential uses for Golem include computer generated imagery (CGI), scientific computing, trading and e-commerce.
Thus Golem’s plan is to give everybody, everywhere easy access to a supercomputer. Golem ecosystem users will pay with an Ethereum Request for Comment (ERC20) token they call the Golem Network Token (GNT).
How Golem Works
Golem plans to build the distributed supercomputer by connecting thousands or tens of computers all over the world through its blockchain.
Owners will put their computers up for rent on Golem and users will pay for computing power with GNT. Tasks you could perform on Golem include training artificial intelligence (AI), simulating neural networks, sequencing DNA, modeling, CGI animation, and building simulations.
Interestingly, Golem is building its decentralized supercomputer on the Ethereum blockchain. Ironically, Ethereum itself is a decentralized computer. Thus Golem is a decentralized supercomputer inside a decentralized computer.
How Golem could make Money
The hope at Golem is that people and organizations that need supercomputers will rent them through Golem. The renting out of computer and cloud space is already big business.
Statista estimates the value of the global cloud computing and hosting market at $136.22 billion in 2019. Furthermore, Statista forecasts the value of the cloud computing and hosting market could grow to $156.4 billion in 2020. Hosting is growing dramatically Statista estimates the value of the global hosting market at $101.21 billion in 2017 and $117.96 billion in 2018.
Moreover, hosting is one foundation of the fortune of the world’s richest man Amazon (NASDAQ: AMZN) Jeff Bezos. Forbes estimates Bezos was worth $108.1 billion on 4 October 2019. Revenues at Amazon Web Services (AWS) grew by 37% during 2nd Quarter 2019, CNBC estimates. AWS revenues rose to $8.38 billion in 2nd Quarter 2019.
Additionally, AWS’s competitor Microsoft (NASDAQ: AZURE) Azure’s revenues grew by 64% in 2nd Quarter 2019, CNBC claims. Azure generated $2.12 billion in revenue during 2nd Quarter 2019. Plus, Azure’s revenue grew from $1.64 billion in 2nd Quarter 2018 to $2.12 billion a year later.
Could Golem make money from Artificial Intelligence and Supercomputing?
I think Golem could become a profitable hosting solution – if it works as advertised.
In particular, Golem could make money by hosting digital supercomputers and artificial intelligences (AI). For instance, a university with a lightly used supercomputer could rent space on that computer through Golem.
Meanwhile, a tech startup that needs a supercomputer could build a digital supercomputer in Golem. Instead of buying or renting a supercomputer, the tech startup will use Golem to rent the university’s supercomputer.
Unfortunately, there is no evidence any AI or supercomputer is operating through Golem. Yet there could be a huge market for Golem.
Notably, Golem’s website mentions the possibility of Golem decentralized apps (DApps). I think those DApps could be digital supercomputers or artificial intelligences.
I believe there could be a huge market for the Golem DApps. For example, a moviemaker in Nigeria who wants to add to CGI to her film could access a Golem CGI DApp. A DAppp maker in Ohio could make money by renting or selling the DApp to the Nigerian filmmaker.
Can Golem Make Money from AI and supercomputer DApps?
I think there will be a huge market for AI and supercomputer DApps. Hence a network that can host and transmit AI and supercomputer DApps could make money.
Potential uses for supercomputer DApps; include designing and building games, data harvesting, Big Data, intelligence, internet surveillance, data collection, databases, gaming, financial research, social media, scientific research, product design and development, finance, building artificial intelligences, and building supercomputer DApps.
Possible uses for AI DApps include operating systems for self-driving vehicles, managing hedge funds, managing stores, investing money, gambling, banking, operating systems for robots and industrial equipment, and scientific research.
Will Supercomputer DApps Make Money?
Obviously the AI and supercomputer DApps are theoretical. However, the potential for such solutions is there. Notably regular apps are already big business.
For example, Statista estimates Apple (NASDAQ: AAPL) App Store apps generated $120 billion in cumulative revenue for developers by January 2019. Plus app store developers made $100 billion in cumulative revenues as of January 2018. Therefore, I estimate App Store developers earned $20 billion in revenue in 2018.
Notably, App Store developers made that money with simple entertainment and gaming apps. Theoretically, Golem could offer complex apps that can do far more. For example, somebody could create a supercomputer app anybody can download through the Golem Network.
Governments, businesses, universities, laboratories, researchers, and other organizations could pay a fortune to access such an app. There is an obvious dark side to a supercomputer app. Terrorists could use the supercomputer app to create genetically engineered biological weapons or design nuclear bombs, for example.
Is Golem (GNT) a Good Cryptocrrency?
I consider Golem an idea for a disruptive and potentially lucrative blockchain application rather than a cryptocurrency. Until Golem builds a blockchain supercomputer its’ value is purely theoretical.
Mr. Market, however, assigns some value to Golem (GNT). CoinMarketCap listed Golem as its 85th most valuable cryptocurrency on 4 October 2019.
Specifically, Golem had a Coin Price of 4.6₵, a Market Capitalization of $45.136 million, and a 24-Hour Market Volume of $3.071 million on October 4, 2019. CoinMarketCap based those numbers on a Circulating Supply of 979.450 million GNT and a Total Supply of one billion GNT.
If you are seeking a cryptocurrency that could make a lot of money and you can afford to lose money, Golem (GNT) is an interesting speculative investment. In particular, Golem is cheap now but its blockchain could have a lot of potential. However, Golem (GNT) is not for ordinary people because there is no evidence that its blockhain makes money.