Is Golem's (GLM) "decentralized supercomputer" a threat to AWS and Microsoft Azure?

The Golem team introduced a project that allowed users to directly exchange computing resources of their computers and data centers through a P2P marketplace.

What is Golem?

Golem is a decentralized marketplace based on the Ethereum blockchain that shares computing resources between users and companies. Golem has been dubbed a "decentralized supercomputer" because all the computing power supplied by different nodes is pooled into one network.

The project, which previously bore the name Golem Network project, was founded in 2014 by blockchain enthusiasts who first presented the concept of a decentralized marketplace at the DEVCON conference. The Golem Network marketplace itself was launched in April 2018.

How does Golem work?

Users can rent free computing resources from providers on the Golem marketplace for a fee. The providers can rent their free computing resources to other users, receiving token rewards.

In other words, the Golem platform is an alternative to centralized services that fully control the market of computing resources, unilaterally setting their own rules. One of the main problems of centralized services is the high price of renting computing resources and various kinds of restrictions imposed by companies. For example, some cloud services do not allow using their computing resources for cryptocurrency mining.

Unlike Golem, users of centralized cloud services do not have the opportunity to become providers and provide free computing resources themselves.

Golem's platform eliminates all these problems and has other advantages, such as flexibility in renting computing resources and allowing users to determine how much they need to purchase.

Golem token

The main native asset of the decentralized Golem platform is the GLM utility token, issued on the Ethereum blockchain in ERC-20 format. Golem does not have its blockchain, and the trading platform functions as a decentralized application (DApp). In addition to Ethereum, the GLM token exists on Polygon's Layer-2 network.

The primary purpose of the GLM token is to make payments. Users renting computing resources on the Golem marketplace pay for the service with GLM tokens, and providers receive remuneration.

The Golem platform token appeared on exchanges in November 2016, but before that, it had a different name — GNT. Initially, 1 billion GNT tokens were issued and distributed during the Initial Coin Offering (ICO). In late 2020, the Golem team released an updated token called GLM, into which GNT migrated at a 1:1 ratio. That same year, the Golem Network project was renamed Golem.

At the time of listing, the price of the GLM token (then known as GNT) was $0.013. As of February 2025, it has risen over 1800% to $0.28. Golem reached its all-time high (ATH) in January 2018 at $1.25 and is trading 77% lower at the moment. Golem's market capitalization is $290 million, and according to this indicator, the GLM token is in the 152nd position among all cryptocurrencies, as evidenced by data from the CoinMarketCap service.

A total of 1 billion GLM tokens are circulating on the market — this number is the limit for this asset: there are no plans to issue new tokens.

Conclusion

The Golem team was the first in the crypto industry to introduce the concept of a decentralized marketplace for computing resources. However, despite its innovative approach, the marketplace is still much less in demand than centralized cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Yandex Compute Cloud.

Complicating the situation is the fact that large companies are partnering with blockchain projects and developing their decentralized solutions. For example, AWS has partnered with Ava Labs, the company behind the development of the Avalanche decentralized platform, to work together on scalable blockchain solutions. Amazon Web Services has also launched its own AWS Managed Blockchain solution, simplifying the development of scalable blockchains.

Microsoft Azure is partnering with Ethereum, Hyperledger Fabric, and Codra. To work with these blockchain networks, the company uses its own Microsoft Azure Blockchain platform, which provides tools for building and managing blockchain-based platforms and applications.

Nevertheless, Golem is a competitive project, although it has not demonstrated strongly positive dynamics over the past year: the GLM token remains a somewhat volatile asset, fluctuating from $0.24 to $0.70 over this period.