Whether you’re targeting financial freedom or simply keen for some extra cash, earning passive income can be an excellent way to give your finances a boost.
While we’ve previously explored ways to earn income on the side, this week we’re taking a closer look at the Golem Network, specifically because there’s a way you can use it to earn a few bob.
In this article, we’re going to explore what the Golem Network is and how it works. Scroll down for all of the info, or click on the links to head straight to a section.
What is the Golem Network?
Golem isn’t just a fictional character from a popular Middle-earth movie franchise. Today Golem is also the name of a decentralised, blockchain based peer-to-peer network.
If you’re confused, you’ll be pleased to know that the Golem network is quite easy to understand once you get your head around how it works and why it exists.
In layman’s terms, the Golem network allows computer users around the world to lend or borrow computing power.
In the Golem universe those looking to borrow computing power are known as ‘Requestors’ (excuse the unusual spelling). Users seeking to lend their unused computing power are known as the ‘Providers’.
There are a number of reasons why users may wish to borrow computing power from others.
Digital modelling, AI machine learning, or cryptocurrency mining… all of these online activities would typically require substantial computing power, well beyond the capabilities of a single bog-standard PC. These are just some examples that demonstrate why there’s a demand for renting computing power.
Golem: ‘connect your resources with others’
Speaking to Money Magpie, Adrian Pietraszkiewicz, Marketing Director at Golem, explained to us how the Golem Network works.
He explains: “There are numerous groups of people around the world who have limited access to computer resources such as the processing power of the processor or graphics card. With our platform, Golem Network, those who have resources can connect with those who need them.
“Even access to telescopes like those in Chile or La Palma might be achievable in the future through the use of the Golem Network platform.”
Pietraszkiewicz also highlighted how Golem does’t charge transaction fees due to its decentralised nature.
He explains: “As an open-source project funded by individuals worldwide, there are no charges for these transactions. Our marketplace links web3 application developers with resource providers, and the currency used is the GLM token.
“Currently, our platform allows for the sharing of processing power (CPU). For instance, if Lucy from Brixton is not using her computer, she can make her unused computing resources available to someone in need through the Golem Network and earn GLM tokens in return. On the other end, there could be scientists who require vast computing power to perform simulations and calculations, such as simulating the origin of life on Earth. Isn’t that amazing?”
Is golem a new concept?
Borrowing computer power isn’t a new concept. This can already be achieved through the cloud, or by buying or renting large servers.
However, one advantage of using the Golem Network is that it can be cheaper than using cloud services. Cloud services can also be slow.
Also, the Golem network doesn’t require its Providers to have lots of excess computing power at hand. This is the beauty of its peer-to-peer network. Users can lend as much, or as little, excess power as they like. Requestors are able to borrow excess power from lots of Providers at once. In other words, the Golem Network has the capability to pool resources from multiple users.
how can you earn passive income with golem?
To earn passive income through the Golem Network you’ll need to have a PC that’s reasonably powerful.
As mentioned above, one big benefit of Golem’s peer-to-peer network is that you don’t need a mammoth data centre in your spare bedroom to lend power. Running the software in the background of your PC could be enough to score yourself a profit. Obviously, the more power you lend, the greater the potential rewards.
However, before you bring out the calculator to work out how much you can earn, it’s worth knowing there’s typically an imbalance between Providers and Requestors on the Golem network. Users seeking to lend their excess computing power often outnumber those looking to borrow power. As such, if you become a Provider it may take a while to match with a Requestor.
How to become a Golem Provier to earn passive income
It’s fair to say you’ll need some technical know-how if you want to become a Golem Provider. To start with, you must have or download the Linux operating system. There’s official support for Ubuntu 18.04 LTS and 20.04 LTS, though Golem says other Linux distributions may work.
Once you’ve downloaded Linux , there are several other steps to follow including the need to run a specific ‘installation command.’.
If you’re having difficultly following all that then Golem have put together a helpful step-by-step tutorial to assist budding Providers in signing up.
Once you’ve worked it out you’ll be able to determine how much RAM or CPU power you wish to lend out.
Golem (GLM) Tokens
When you become a Golem provider and you successfully lend some of your resources, you’ll be paid in the form of Golem (GLM) tokens.
One GLM token can be stored in any any wallet that supports Ethereum – if you aren’t sure about how this all works, then do take a look at our comprehensive guide to cryptocurrency.
At the time of writing, one GLM token is worth in the region of $0.25 (£0.21). There’s approximately 1,000,000,000 GLM in circulation and, similar to Bitcoin, the supply of these coins is limited. As such, if you’ve faith in these tokens and you believe they’ll rise in value, you may decide to hold on to them. However, you may alternatively wish to trade them for other digital coins through a crypto exchange. Or, you might even wish to sell them for some old fashioned fiat currency!
To learn more about earning extra income, take a look at our guide that explores how to make £1,000 passive income for life.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice.
*This is not financial or investment advice. Remember to do your own research and speak to a professional advisor before parting with any money.
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