Golem - Perhaps a good example for Bitcoin Cash-based Colored Coins

Golem (GNT) is an erc20 token (EDIT Nov. 12, 2018: GNT is not an ERC20 token ?) on the Ethereum blockchain. Golem is also a decentralized application or dapp/dApp decentralized app.

Golem doesn't have any plans for becoming a Blockchain (unlike some other erc20 tokens such as EOS which is moving to their own blockchain).

Anyone can create an erc20 token (please see: UET: Useless Ethereum Token) but not everyone has the time, creativity and ambition to create a distinctively useful and unique dapp.

What makes the Golem dapp useful and unique?

Answer: It's a decentralized global market for idle computer power. You can buy and sell processing power with Golem.

The idea is not entirely and unconditionally unique because mining bitcoin is basically an already existing implementation of the same idea. Moreover, there are websites which already exist which allow the buying and selling of processing/computing power over the internet.

However, Golem seems to be unique in that the processing power can be used for anything (perhaps even quantum computing?) and not just for mining (also note that mining with it might not be a good idea financially). Moreover, Golem is decentralized which is an advantage over the centralized websites which currently allow buy/sell of processing power. Also note that Golem uses Smart Contracts while the said websites (albeit unnamed for the purposes of this article) are centralized deal makers and you're at their mercy (and perhaps their whims).

Internal currencies (e.g., Golem) are important for monetization of dapps (e.g., Golem). Developers need a way to make money and, depending on what the dapp does, users might need a way to make money (or maybe at least send and receive money). Or at least that's my position. This also supports my position that dapps needs to be both useful and unique otherwise I don't see the need to not use Bitcoin (BCH or BTC) itself to pay for whatever service is offered. Example: if you create a dapp to pay the Dentist, or for dental work, why not just pay the dentist in bitcoin (BCH or BTC) through your dapp? Moreover, why use the dapp in the first place and not just send bitcoin directly to the dentist?

All of the foregoing are just my personal thoughts and understanding, somewhat impromptu (time is valuable!), so all mistakes/errors (if there are any) in the foregoing are mine alone.

Sometime relatively soon creators of dapps may have the opportunity to also create Bitcoin Cash-based colored coins which are similar to Ethereum's erc20 tokens.

The idea isn't new. As a matter of fact Vitalik Buterin was originally going to build Ethereum itself on top of the Bitcoin blockchain but at the time the developers of Bitcoin were making this too difficult to do:

It should also be noted that by December 2017 that colored coins, even if possible to create, probably wouldn't have been viable because of exceptionally high transactions fees on the Bitcoin blockchain.

It appears that Bitcoin Cash (BCH), or perhaps better just know as Bitcoin (BCH), will make colored coins and smart contracts possible again. Please see Jamie Redman's article (Apr. 17, 2018) at news.bitcoin com: Op-Codes and Scripting Capabilities Coming to Bitcoin Cash

Jamie Redman has previously written about the subject, at news.bitcoin com, in his article (Nov. 23, 2017): Developers Invoke the Idea of Bitcoin Cash-Based Colored Coins

I also recommend watching the following video (Jan 22, 2018) by Noah of the Decentralized Thought youtube channel, Bitcoin Cash Colored Coins | Simply Explained:

The scheduled activation time for the hard fork network upgrade is set for May 15, 2018 (no specific block height for this hard fork). Please see the announcement from Bitcoin ABC: Bitcoin ABC Releases Version 0.17.0 For May 15th Hard Fork Network Upgrade.

Jamie Redman also wrote about this upcoming hardfork in his article (Apr. 6, 2018), at news.bitcoin com, Upgrade Time: Bitcoin Cash Plans a 32 MB Hard Fork

The Nandi Bear first learned of the Golem network in mid-2017 and starting buying their tokens, here and there, in August of the same year. I don't officially endorse or officially support Golem. However, I am fascinated by the thought-provoking project and am very much interested in it.

I believe that my first couple hundred or so Golem (GNT) tokens were bought at Changelly (for readers who aren't already familiar it's an exchange site). I don't officially endorse or officially support Changelly. Having said that, using Changelly does have some advantages over many other exchanges. For example, you can use fiat currency (bank card) to buy cryptocurrency:

You could do the same at places like Coinbase and Gemini but some major differences include the fact that the approval/verification process at Coinbase and Gemini is typically much, much more strict. Moreover, Coinbase and Gemini only offer a few coins (i.e., BTC, BCH, ETH and LTC).

Some disadvantage of using Changelly include paying higher prices (probably because they take more risks than places like Coinbase and Gemini). Also, you can't sell cryptocurrency for fiat at their exchange (unlike Coinbase and Gemini which will buy your coins). However, you can't sell your coins anyway at other non-fiat exchanges (e.g., Binance).

Nowadays I use use my Exodus wallet to store and buy Golem (GNT). For readers who aren't already aware there's an exchange feature built into the Exodus wallet which allows you to trade coins via the ShapeShift. exchange. For example, you can trade Bitcoin Cash (BCH) for Golem (GNT) with just a couple of clicks in the Exodus wallet. I don't officially endorse or officially support Exodus or ShapeShift. However, I really like their products/services.

Golem recently (c. April 10, 2018) released their beta mainnet which is called Golem Brass. Just a reminder (if you missed it in the foregoing): Golem has no plans for becoming a blockchain. Their mainnet is not a blockchain (i.e., Golem will remain as an erc20 token on the Etheruem blockchain) but rather it is their dapp. You can download the Golem dapp (current version as of writing this article is Brass Golem Beta 0.15.0) at either of the following links:

https://golem.network/renderin/download/

https://github.com/golemfactory/golem/releases

Here's a tutorial video of how to install Golem Brass on Windows 10:

To learn more about decentralized applications (especially if you're a beginner, because my articles aren't designed for experienced developers, unless they're looking for laughs, because I'm just a simple Nandi bear!) you might also want to read/watch:

Bitcoin book review episode 2 - Decentralized Applications: Harnessing Bitcoins Blockchain Technology by Siraj Raval

If you have a copy of the book which is referenced in that article please see page 6 under section: Feature 2: Internal Currency and pages 54 thru 60 under section: Dapp Economics.

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