What is Akash (AKT): Decentralized Cloud Computing

Introduction

The growth of the digital age has witnessed significant strides in cloud computing and infrastructure. By harnessing the power of decentralized and open-source technology, Akash Network empowers users to access cloud computing resources in an entirely new way, one that’s more cost-effective, flexible, and environmentally sustainable.

This article will explore the innovative realm of Akash Network and uncover how it’s reshaping cloud computing by offering a decentralized and community-driven solution, all while significantly reducing the barriers to entry for developers and businesses.

What is Akash Network?

Akash Network is an open-source and decentralized cloud computing platform built on the Cosmos blockchain, using the Cosmos software development kit (SDK). It is an open-source supercloud that allows users to securely and efficiently buy and sell computing resources. With Akash Network, users get to own their cloud infrastructure, deploy applications, and rent unused cloud resources.

The network allows for deploying any cloud-native application, improving performance and scale for the decentralized applications (dApps) and organizations on its network. Akash Network is also compatible with several existing cloud applications, allowing businesses to participate in the decentralized cloud computing market.

Akash Network seeks to democratize access to the power of cloud computing and minimize the influence of a few centralized companies, known as the Big Five (Google, Apple, Amazon, Meta, and Microsoft), on cloud computing, which has now led to censorship. Akash Network solves this issue since its sources are not owned by a single company or individual but come from a distributed network of cloud computing data centers situated worldwide.

History of Akash Network

Akash Network was founded in 2018 by Greg Osuri and Adam Bozanich. Greg Osuri, the Akash Network CEO, is an experienced entrepreneur who has helped launch multiple developer companies such as Firebase (acquired later by Google in 2014) and AngelHack, the world’s largest developer ecosystem.

On the other hand, Adam Bozanich, the Chief Technology Officer, has worked as a QA automation engineer at Symantec Corporation. He also worked as an engineer and developer for Topspin, a music monetization platform later acquired by Apple in 2014.

Akash Network’s whitepaper version 1 was released in December 2017, and on September 25, 2020, Akash Network launched its mainnet. On March 8, 2021, Akash Network launched Mainnet 2 on the Cosmos SDK.

How Does Akash Network Work?

Akash Network is a secure, transparent, and decentralized cloud computing marketplace connecting users who need computing resources (known as tenants) with those with the computing capacity to lease (providers). This is enabled by a blockchain-powered distributed exchange where clients post their desired resources for providers to bid on.

It acts as a super cloud platform; that is, it provides a unified layer above all providers on the marketplace to present clients with a single cloud platform, regardless of which provider they may be using. Since Akash Network is a cloud platform for real-world applications, it must adhere to the primary requirements of these applications, which involve:

• Having several workloads deployed across data centers. Workloads in Akash Network are known as Docker containers. They allow for highly isolated and configurable execution environments and are already part of many cloud-based deployments today.
• Connectivity restrictions that prevent unwanted access to workloads.
• Being self-managed so that operators do not need to tend to deployments constantly.

The primary design objective of Akash Network is to maintain a low entry barrier for providers while ensuring that clients can trust the resources the platform offers them. To achieve this, the system requires a publicly verifiable record of transactions within the network. With this marketplace, developers can set prices according to the cloud capacity, amount of nodes, and CPU capacity.

Akash Network is a peer-to-peer and interoperable marketplace where projects can interact and exchange information with other blockchains. This interoperability encourages user participation in the Akash Network marketplace. Its mainnet 2 also provides easy-to-use and seamless application deployment tools for end users.

Persistent Storage

Akash Network’s persistent storage offers a seamless storage system for preserving data, even in the case of service disruptions, including power shortages. This feature is particularly valuable for various use cases, such as databases that store large datasets.

Deploying services on Akash Network is relatively easy. Services on Akash is configured with a YAML configuration known as the Stack Development Language (SDL). With SDL, developers can determine what type of services they want to deploy, how much resources they need (like CPU, memory and storage), and even how many services they want to run.

Service on Akash is non-persistent by default. As a result, if the service is destroyed, all of its data is destroyed. To keep some data, however, developers can mount persistent storage volume on the container. Introducing persistent storage does not affect pre-existing SDLs though.

IP Leases

This feature on Akash Network allows a workload to obtain a static, reserved public IP address. It offers the option for tenants to request publicly routable IP addresses for the services they deploy, and the lease can also be ordered as part of a deployment. However if a lease is closed, the IP address will not be retained, and the reservation of the IP address will be lost.

Main Features of Akash Network

Clients use the Akash Network due to its cost advantages, usability and flexibility to move among cloud providers, and increased performance benefits of global deployments. On the other hand, providers use Akash Network because it allows them to earn revenue from dedicated or temporarily unused capacity. To cater to these needs, Akash Network offers several features and products, including:

Akash Supermini

Akash Supermini is a mini supercomputer equipped with enough power to support heavy workloads. Supermini is targeted at users looking for high-performance computing hardware, and its primary purpose is to facilitate the selling and leasing of computing resources on Akash Network. There are only just over 300 units of Supermini distributed so far, and Akash Network is still evaluating the economic viability of the product.

Escrow Accounts

Before a deployment can get to the submission stage, tenants must first submit a deposit for their requests. Akash Network uses a “deposit and withdraw” mechanism on the blockchain to ensure tenants pay the providers for the leases. After creating a lease, a provider will then receive passive payments from the deposit sum of the tenant.

Additionally, providers can withdraw any balance owed to them at any time. Tenants can also top up their deposits to ensure sustainable funds for running applications. If the funds run out, providers are free to close the lease. Conversely, if providers cease to continue the lease contract, any unspent funds will automatically be sent back to the tenant. Cryptographically-secured and smart contract-powered escrow accounts ensure both parties involved in the transaction receive a fair deal.

Another use case for the escrow accounts is for time-based payments to the provider for the lease services. The value of a lease is measured in units of blocks, with payments due to the provider for every block added to the blockchain. Implementing a micropayment service on a block-by-block basis would negatively affect the user experience and security of the platform. As such, the escrow accounts enable regular payment intervals covering a more extended period.

Akash Marketplace

The Akash Marketplace is a decentralized marketplace operating on the Akash blockchain. The Akash blockchain records all transactional data on-chain from the Akash marketplace, including requests, bids, leases, and settlements.

As stated earlier, the Akash Marketplace features two main participants: tenants and providers. Tenants deploy container applications while providers host the applications. The marketplace also uses ‘deployments’. Deployments provide a full description of the resources a tenant is requesting to host their application on the network. Deployments within themselves contain groups, which are a way of categorizing types of resources that can be leased together from one individual provider.

Deployments are submitted to the Akash blockchain, storing requests immutably on-chain. Almost instantly, the deployment submissions generate an order on the Akash Marketplace.

The marketplace uses a reverse auction method to generate leases between participations. In short, tenants create orders containing their specifications as deployments, and providers bid on them. Tenants then choose the bid that suits them best, in turn generating a lease contract.

After creating the lease, tenants must submit a manifest to the provider outlining specific workloads. The provider then executes the workloads according to the manifest, and the application goes live. Leases can be closed by either the provider or tenant at any time, and pending workloads will be shut down.

What is AKT?

AKT is the native multi-utility token of the Akash Network. It also serves as the ecosystem’s reserve currency. It is used for gas fees and as the default medium of exchange in transactions between providers and tenants. It serves three primary functionalities contributing to the network’s smooth operation and ecosystem growth. These include:

Security

Users staking AKT tokens not only assist in securing the network but also earn passive income as rewards for their contributions, thereby reinforcing the overall network security. Node operators can only validate transactions on the Akash mainnet, and they receive in-kind rewards if they have a total stake that places them among the top 100 on-chain AKT holders. This stake total includes the amount the validator allocates itself combined with the amount allocated to them, as Akash also uses a Delegated Proof of Stake consensus algorithm.

Rewards

Akash plans to charge a “take fee” for every successful lease and then send the fee to the Take Income Pool to be distributed to holders. This fee is tentatively set at 10% for AKT transactions and 20% for when other cryptocurrencies are used. The network also plans to reward holders for the time lockup of their AKT holdings. Holders staking for longer periods will be eligible for larger rewards.

Governance

Only AKT holders can participate in governance. They also have the power to vote on network improvement proposals and manage crucial parameters like inflation rate and take rates. This governance model will allow community members to actively participate in shaping the network’s future.

AKT Tokenomics

AKT has a total supply of 388.5 million tokens, with a market cap of $168 million as of this writing. It has a current circulating supply of 218 million AKT tokens. The token distribution is as follows:

• 60% was allocated to staking and governance
• 20% was reserved for the Akash team
• 10% was allotted to ecosystem development
• 2% was allocated to airdrops and bounties
• 8% was sold to early supporters and contributors

Akash Network Ecosystem

Akash Network is a dynamic and decentralized platform at the forefront of cloud computing and blockchain technology. Its ecosystem revolves around the Akash Token (AKT), the network’s native cryptocurrency, which plays a pivotal role in securing services and incentivizing both providers and clients.

With a mission to make cloud services more accessible, efficient, and open, Akash Network features a variety of projects including Anonstake, a PoS Validator, Blockless which executes smart contracts, Praetor, a developer tool, and other services and DAOs.

News on AKT

According to the whitepaper, Akash Network has multiple projects in its pipeline, including its settlement option and the take fee charges.

Is AKT a Good Investment?

Akash Network is a project with enough potential to change the cloud computing market drastically. Furthermore, as a decentralized and open-source protocol, it offers a much better deal regarding the security and privacy of user data than any of the major companies that have been dominating this sector since it was invented. However, it must be noted that the cryptocurrency market is quite volatile, so every investor is advised to do extensive research and consult qualified financial professionals before investing in AKT.

Take Action on AKT

AKT is available for purchase from centralized and decentralized exchanges, including gate.io. Check the AKT price here and begin trading your favorite pairs.

• AKT/USDT
• AKT/ETH