Golem Network is the very first decentralized global market for computing technology. It used to be the third-biggest Initial Coin Offering (ICO) platform. Proceeds are allocated to improve large-scale objectives of financial technology.
Golem is one of the few Blockchain technology start-ups building decentralized internet platforms. The Golem Project came up with an ICO to subsidize its development. Response to the crowdfunding campaign was simply phenomenal. The Initial Coin Offering reached the ceiling within 20 minutes right after it went live.
The Golem Network
Golem Network based in Poland is a Peer to Peer (P2P) system that does not use any central server. It permits users and apps owners to utilize providers’ resources such as equipment and obtain crypto-currency payments. Golem will use all computing resources to implement tasks based on centralized solutions. It will turn out as a decentralized bionetwork and employ shared capability of users’ hardware and software to deliver all required resources for computing functions.
Centralized cloud service providers supply said computer resources even as these are hampered by congested networks, payment methods and fixed network operations hub. Golem serves as the foundation of decentralized market for computing. It can be an Infrastructure as a Service or IaaS and Platform as a Service or PaaS.
According to reports, this ICO platform comes after Ethereum ($18 million within 42 days) and Waves ($16 million in one month). The first is a public-based and distributed Blockchain computing platform. The second is a Blockchain-powered token technology. Golem has the capacity to reduce computations of prices significantly to make apps user-friendly.
Golem has achieved enormous success lately which catapulted Golem to becoming the second-fastest ICO in the history of crypto-currencies. This transpired after Golem was able to raise around 820, 000 (ether) which is equivalent to around $8.6 million within 20 minutes last November 11 (2016).
DDoS Attacks
Distributed Denial of Service (DDoS) is defined as an attempt to overcome an online service with traffic coming from different sources. Interest in decentralized platforms was renewed in the wake of massive DDoS attacks which interrupt the worldwide web and leave major websites unreachable.
The interest of investors was stimulated by the DDoS strike. With sufficient financial resources, the Golem platform can build the most potent “super computer” on distributed cloud. It can reduce computing power costs and increase speed at the same time. This system also benefits Artificial Intelligence (AI), scientific research, data analysis, and machine education. Golem has worked on this venture during the last two years and sold one billion Golem Network Tokens. GNTs are currently listed at Coin Market Cap. The digital token is traded at the LIQUI crypto-currency exchange as well and exceeded a 24-hour trade volume of $7, 900.
At present, MaidSafe is another crypto-platform that works on decentralized web. The platform’s token (MaidSafeCoin) is ranked #10 among the 10th largest crypto-currency when it comes to market capitalization which is almost $32 million today.
Golem Deal
The Golem transaction indicates the need to revert to the Initial Coin Offering market. The Golem Network Token was developed through said ICO. It serves as medium of exchange between traders on this facility. Those who engage on this platform are software developers, users who order computing resources and infrastructure providers. These parties trade suing GNTs.
The Initial Public Offering (IPO) market used to be controlled or influenced by investment banks, However, it is currently being dislocated by financial technology players like Angel List (US website for start-ups, investors and job-seekers); Syndicate Room (UK online crowdfunding platform); Our Crowd (Equity crowdfunding platform for accredited investors); and, many other FINTECH operators.
Crowdfunding, syndication process transparency and cross-border deal facilitation are components of this disruption that facilitates access to capital. It is achieved without listing in any exchange such as public markets and improves liquidity in private shares.
How does the ICO disruption correspond with the system?
The ICO is a method of crowdfunding. It is an inexpensive and transparent process of share-ownership. In fact, ICO can be described as a Bitcoin derivative or any other digital currency. Under this method, the company that issues shares creates an Altcoin with its own name but not automatically a colored and smaller ingredient of the Bitcoin. Small denominations lead to liquidity.
Initial Coin Offerings ensure access to global capital at the same time. On the other hand, raising traditional capital begins in a single regulatory jurisdiction. It may also opt to list in another exchange. The ICO is similar to the FOREX market that engages in international trading instead of equity markets. It can be started from initial stages of business development and a cost-effective technique during the earlier stage of ventures. In the end, ICOs benefit from liquidity traction of the original crypto-currency from which it was generated.
ICO Legitimacy
Blockchain start-up entities take on an Initial Coin Offering using fragments or clips of codes or artificial descriptions about their services. The simple concept of crowdfunding an imaginary (unreal) software system has turned into a trend in the digital currency industry. Private corporations have raised a fortune to subsidize their subsequent operations.
This is the ICO’s dilemma:
Many experts are questioning the legitimacy of Initial Coin Offerings. One of their basic arguments is it is practically impossible to forecast the ICO’s outcome. This happens because users are not really aware of what to expect. The ICO is not based on real-world trade value making it susceptible to significant undervalue or asset overvaluation. Once tokens are overvalued, investors can lose a considerable amount of money. Lack of assurance for completion of projects as well as failure to deal with market values makes it hard to rationalize the legitimacy of an Initial Coin Offering.
A lot of Bitcoin specialists are doubtful of the Initial Coin Offering mainly because majority of projects engaged in ICOs hardly finished the systems’ technical aspects. Many of these experts respond cleverly when it comes to questions or discussions about the ICO’s configuration. It is not easy to explain the validity of an ICO even if projects like the Ethereum and Decent platforms have been relatively successful.
Right now, the financial technology ecosystem continues to monitor and assess the ICO market and how it relates to industry requirements.