The first cloud-based open decentralized protocol: what is Akash Network (AKT)?

More and more alternatives to traditional online services are emerging on the blockchain. One of the popular areas for which blockchain projects are being developed is cloud computing and data storage. One of the reasons for creating decentralized alternatives is the high prices for cloud services and the limitations of services.

What is Akash Network?

Akash Network is a decentralized cloud blockchain platform built on the Cosmos Software Development Kit (SDK). The Akash Network platform is used to develop and run decentralized cloud applications.

The Akash Network testnet was launched in 2017 and is the world's first and one of the leading decentralized cloud platforms based on the open-source blockchain. The mainnet, however, was only released by the Akash Network team in September 2020. Since launch, the developers have released 9 updates to the mainnet, the latest of which was an improved algorithm for coordinating validators — blockchain nodes responsible for verifying transactions and mining new blocks.

Akash Network technology

As mentioned earlier, Akash Network is developed based on the Cosmos SDK, a toolkit that allows developers to release decentralized blockchains and applications compatible with various networks.

At the heart of the Akash Network mechanism is the Delegated-Proof-of-Stake (DPoS) consensus, a variation of the Proof-of-Stake algorithm in which users can delegate their tokens to validators for staking without directly participating in the network consensus. In this case, new blocks are mined by voting validators whose voting strength depends on the number of tokens delegated for staking.

The Akash Network is performant and scalable because it utilizes the same Tendermint technology that underpins the Cosmos zero-level blockchain. The Cosmos Network is an infrastructure for building Tier 1 blockchain networks, similar to Ethereum or BNB Smart Chain, but much more performant.

Akash Network's architecture is a kind of Supercloud, which allocates unused cloud resources to improve the efficiency of services and help companies reduce costs because when there is free space, equipment is idle, which leads to additional fees. According to the Akash Network team, their cloud services are much cheaper than those of their centralized counterparts.

In addition to the high costs of cloud computing, Akash Network's blockchain platform solves another industry problem — the limitations imposed by centralized providers like Amazon Web Services, Google Cloud, and Microsoft Azure. While these large vendors have IT infrastructures that are not heavily taxed and, as a result, provide more favorable terms of use, their consumers become highly dependent on these vendors and do not have complete control over cloud computing resources. With Akash Network, developers can use resources as they see fit and create decentralized applications without restrictions.

Akash Network virtualizes computer resources and turns free computing space into containers, then rented out to private clients and companies. It all works on the principle of reverse auction: cloud providers place their orders, and the lowest bidder wins. In this way, Akash Network provides a flexible, competitive environment that keeps prices low even when demand for cloud services is high.

AKT token

Akash Network's native utility token is the AKT token. The token is used to pay network, steering, and cloud service fees. In addition, AKT is used to manage the ecosystem, which employs a voting system in which token holders participate.

At the same time, Akash Network deducts a commission of 10-20% from each successful payment, depending on the cryptocurrency used, and distributes it to AKT token holders, which creates additional incentives for them to retain their assets.

The AKT token has a cap of 388.5 billion; more than 58% of that is already circulating in the market — about 226.7 million. The AKT token price reached an all-time high of $8.08 in April 2021 - at the peak of the cryptocurrency bull market.

Does Akash Network have any prospects?

Akash Network developers confirmed in their Q4 2023 Recap report that they are ready for the "artificial intelligence boom" that is about to begin. This boom could lead to a catastrophic shortage of cloud computing resources and, as a result, uncontrollable price increases. According to the Akash Supercloud team, they are utilizing the most advanced and productive A100 and H100 processors currently available. They will be able to seriously compete with the companies dominating the market.

Starting in August 2023, the Akash Network team began to engage more closely with AI-based technologies by launching ThumperAI basic AI model training. This training aims to create an open-source AI model called Akash-Thumper (AT-1). The goal of AT-1 is to demonstrate the potential of decentralized networks to train artificial intelligence models.

As Akash Network's user base grows, the project's capitalization is likely to increase as well, as its native token ATK is the primary blockchain asset required for most transactions on the platform. This growth may well be accelerated by integration with AI solutions.