What Is Crypto Akash Network (AKT)?

Akash is an open-source and decentralized cloud computing platform built using the Cosmos software development kit (SDK) and implemented on the Cosmos blockchain.

Akash allows for the deployment of any cloud-native application, improving price-performance and scale for decentralized applications and organizations on its network. Akash is compatible with many existing cloud applications and allows businesses to participate in the decentralized cloud computing market.

Akash distributes underutilized cloud capacity to provide more efficient and cost effective cloud computing services than centralized alternatives. With its dedication to open source technology, the Akash network claims to be significantly less expensive than existing centralized cloud computing providers.

AKT is the native token powering the Akash network. It is used to govern and secure the network, store and exchange value across user, and incentivize participation in the network.

How does Akash work?

Akash is a decentralized cloud computing marketplace that pools and reallocates idle computing processing power to customers that need it. Akash’s ‘Supercloud’ connects clients with providers through a transparent, distributed leasing service and preserves the benefits of decentralized computation through the Akash blockchain.

The flexibility of the protocol allows for movement between providers while offering performance benefits that come from global deployments. Providers, in turn, earn profits from unused capacity.

Through a virtualization process, computer resources are split into containerized applications. These ‘Containers’ are then leased to ‘Tenants’, the purchasers of cloud services on the network. ‘Providers’ bid on these requests after they are validated as orders, with the lowest bid for requested resources winning the lease.

Through this process, market participants each receive a financial incentive to use the network. Providers profit from monetizing their idle resources and Tenants benefit from lower costs. Marketplace transactions all occur on the Akash blockchain.

The Akash blockchain is secured by a Delegated Proof-of-Stake (DPoS) consensus mechanism. As such, the network depends on a system of validators and delegators. Validators on the Akash network commit new blocks to the blockchain through a voting process, using the tokens staked to them by delegators. Delegators stake their tokens to their chosen validators based on public information provided on the platform.

The protocol also implements a Tendermint algorithm for increased speed and scalability. With its transparent and permissionless process, Akash represents the first open-source, decentralized cloud platform.

The Akash Network Marketplace

The Akash Network marketplace acts as a supercloud platform that provides a unified layer above all providers on their marketplace (network) to ensure clients have a single cloud platform, regardless of which particular provider they may be using. People use the Akash Network rather than traditional cloud computing services because of its usability, flexibility to move between providers, performance benefits, and cost advantage.

Cloud providers use Akash mainly because it allows them to earn profits from either dedicated or temporarily unused capacity. A computing unit (CPU) is leased as a container unit of software that packages up code and all its dependencies to ensure the application runs quickly and reliably from one environment to the other.

Interestingly, anyone with a computer or server can slice its resources into container units using a virtualization process. All marketplace transactions take place on the Akash Blockchain. To lease a container, the developer requests a deployment by specifying the type of units and the amount they need. An order is then created in the order book (after approval by a validator). The provider that matches all requirements then places a bid, and the provider that bids the lowest amount on the order wins. For every successful lease, a portion of the lease amount is paid to the blockchain.

Akash Network Tokenomics

Akash Network (AKT) stands at the intersection of blockchain technology and cloud computing, introducing a revolutionary approach to how computing resources are bought, sold, and utilized on a global scale. The native cryptocurrency token, AKT, is pivotal to the ecosystem, serving multiple crucial functions that facilitate the smooth and secure operation of the network.

  • Securing the Network

One of the primary roles of AKT is to secure the Akash Network through a process known as staking. Token holders can stake their AKT to participate in the network’s consensus mechanism, which is crucial for validating transactions and maintaining the blockchain’s integrity. This staking mechanism also acts as a deterrent against malicious activities, ensuring that the network remains secure and trustworthy.

  • Facilitating Transactions

AKT is used to pay for transactions within the Akash Network marketplace, including fees for deploying applications, renting computing resources, and other services provided by the platform. This use of AKT ensures a seamless and integrated economic system where participants are rewarded for contributing value to the ecosystem.

  • Incentivizing Participation

The tokenomics of AKT are designed to encourage active participation within the Akash Network. Staking rewards, distributed in AKT, are a key incentive, rewarding users for securing the network and participating in its governance. These incentives are crucial for building a robust and active community around the Akash Network, driving its growth and sustainability.

  • Growth and Expansion

As the Akash Network expands, the demand for AKT is expected to increase, reflecting its critical role in the ecosystem. The design of the AKT tokenomics ensures that as the network grows in usage and utility, the value and demand for AKT will likely follow, benefiting stakeholders and contributing to the network’s overall health and longevity.

Akash Network Structure

The Akash Network is built on the Cosmos SDK, renowned for its emphasis on interoperability and scalability. This choice of foundation plays a significant role in the network’s structure and capabilities, positioning Akash Network as a versatile and future-proof platform in the blockchain and cloud computing landscapes.

  • Interoperability and Cross-Chain Collaborations

Thanks to the Cosmos SDK, Akash Network (AKT) can seamlessly integrate with other blockchain networks, facilitating cross-chain collaborations and transactions. This interoperability is a significant advantage, enabling Akash Network to function within a broader ecosystem of blockchain projects and services, and potentially tapping into new markets and use cases.

  • Decentralized and Permissionless Marketplace

The decentralized nature of the Akash Network, coupled with its permissionless marketplace, ensures that anyone, anywhere, can participate in the ecosystem. This democratization of cloud computing resources is a game-changer, offering an alternative to the monopolistic tendencies of traditional cloud services providers.

Conclusion

The Akash network aims to provide decentralized cloud services at a fraction of the cost of existing legacy services. AKT is central to the goals of the network.

Network participants exchange AKT for cloud computing services on the platform. Holders of AKT can also stake their tokens for rewards and to increase their governance authority. Stakers may also delegate voting power to validators on the platform.

Those interested in using a more decentralized cloud computing service may be interested in purchasing AKT.

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