Akash Network (AKT) is a decentralized blockchain, decentralized finance (DeFi), and decentralized cloud provider.
A Comprehensive Guide To Akash Network (AKT)- 2023
The Akash Network constitutes a decentralized, open-source cloud computing marketplace with a primary focus on the decentralized finance (DeFi) industry. Functioning as a self-described “DeCloud for DeFi,” the Akash Network presents a solution for developers seeking to construct decentralized applications (dApps) using cloud-based infrastructure that is more affordable, efficient, and adaptable than what is currently available from existing providers. Engineered to align with conventional cloud service providers, the Akash employs a service model that wrests control over cloud computing services from corporations and entrusts more authority to end users.
What is Akash Network?
Akash stands as a decentralized cloud computing marketplace that targets not only decentralized application (dApp) developers in the realm of decentralized finance (DeFi) but also other high-computational, high-growth domains such as machine learning. As a component of the Cosmos Hub, Akash extends its reach across diverse blockchain networks, offering services to a multitude of development platforms. Functioning as a decentralized marketplace, Akash Network aspires to democratize the potential of cloud computing while concurrently delivering more flexible cloud services to end users at reduced costs. Collaborating closely with major players in the existing cloud service provider landscape, Akash aims to introduce a more equitable and efficient approach to the cloud computing industry.
Understanding Akash’s distinctive approach to decentralized cloud computing necessitates an appreciation of the traditional cloud computing model it aims to disrupt.
Traditional cloud computing entails the provisioning of computational resources (typically in the forms of data storage and processing power) on the web, following a pay-as-you-go service model. Many cloud computing providers, constituting subsidiaries of prominent technology giants that have come to dominate around 70% of the total market share as of 2021, adhere to this model.
While cloud service providers empower developers to swiftly launch applications without the concern of server setup and management, customers are often constrained in terms of provider options and functionality. Research indicates that numerous developers settle for underutilized fixed hosting capacity, leading to excessive and often unnecessary premiums paid for cloud services.
In contrast, Akash represents a decentralized iteration of the cloud hosting model, delivering a swifter and more cost-effective experience for developers. Roughly 85% of cloud computing, managed by Akash, leverages underutilized existing data centers. By enabling existing cloud service providers to offload their excess capacities within the Akash marketplace, providers can competitively vie for workloads, ultimately reducing costs for developers and end users of the resultant products and services.
Furthermore, Akash Network endeavors to offer developers and enterprises a flexible and efficient payment model, enabling them to pay as needed. This model obviates the rigidity inherent in direct agreements, involving fixed quantities of server capacity, often brokered through conventional cloud service providers.
Akash Blockchain Structure
The foundational architecture of Akash is a Proof-of-Stake (PoS) blockchain, built in consideration of interoperability using the Cosmos software development kit (SDK), which encompasses the Byzantine fault-tolerant design of the Tendermint algorithm. As a component of the Cosmos Hub, Akash Network resides within a multi-chain ecosystem, designed to enhance cross-chain interoperability. Similar to several PoS blockchains within the Cosmos framework, Akash Network utilizes a native utility token, for securing the network through staking and serving as the default reserve currency within the multi-blockchain ecosystem, thereby empowering Akash Network’s decentralized cloud or DeCloud offering, and functioning as the native medium for value transfer and storage on the network.
Following the mainnet version 1.0 launch of Akash in September 2020, an initial supply of 100,000,000 pre-mined AKT tokens was distributed, with a maximum supply cap of 388,539,008 AKT. The initial supply was divided among investors, the Akash Network Foundation, and the project’s team. Additionally, a public sale of 1,800,000 AKT took place. Approximately 75% of the maximum supply will eventually be distributed as network rewards over time, gradually decreasing as rewards, serving to incentivize the network.
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