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What is Akash Network (AKT) - A Comprehensive Overview
Discover Akash, a decentralized alternative to traditional cloud services, leveraging blockchain for lower costs and greater security
Author
Imperator
Date
Oct 29, 2024
In today's digital landscape, cloud computing is dominated by major players like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). This concentration of power results in high costs, fewer choices, and privacy issues. Akash Network offers a decentralized alternative that aims to change this.
This Akash blockchain presentation explores the platform, its consensus mechanism, use cases, native token $AKT, and Akash staking.
What is Akash Network?
Akash Network ($AKT) is a decentralized cloud computing platform that leverages blockchain technology to create an open, global marketplace for computing resources.
Powered by Cosmos SDK
Built on the Cosmos SDK and utilizing a Proof-of-Stake (PoS) consensus mechanism, Akash offers an alternative to traditional cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).
By allowing anyone with spare computing capacity to become a cloud provider, Akash fosters a competitive environment that drives down costs and increases efficiency.
Role of the AKT Token
The network's native utility token, AKT, plays a central role in the Akash ecosystem. Users use AKT to pay for cloud services, while providers earn it by leasing out their unused computing power.
Additionally, AKT holders can stake their tokens to participate in network governance and earn rewards, contributing to the network's security and sustainability.
Enhanced Security and Cross-Chain Compatibility
Akash Network's decentralized framework enhances security and transparency, as data and transactions are secured on the blockchain. This reduces the risks associated with centralized data storage.
Its blockchain-agnostic design allows for interoperability with other networks, promoting cross-chain collaborations.
Energy Efficiency of Akash
By using a PoS consensus mechanism, Akash is more energy-efficient and eco-friendly compared to networks that rely on energy-intensive Proof-of-Work algorithms.
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How does Akash Network work?
Akash Network functions as a decentralized marketplace for cloud computing resources, revolutionizing the traditional client-provider relationship.
Akash Deployment Workflow
The technical backbone of Akash Network is its deployment process facilitated by a YAML-based Stack Definition Language (SDL).
This intuitive language allows users to define complex cloud infrastructure requirements with simplicity and precision. By specifying computing needs in SDL, users can seamlessly deploy applications on Akash.
Kubernetes for Reliable Hosting
Integrating Kubernetes—a leading open-source platform for automating deployment, scaling, and management of containerized applications—Akash ensures that hosting on its platform is as reliable and scalable as traditional centralized providers.
Kubernetes orchestrates workloads across the decentralized network, maintaining high availability and performance.
Core Capabilities of Akash Network
Akash Network offers a range of functionalities that enhance its decentralized cloud computing platform, providing users with flexibility, efficiency, and security.
Below are the main functions that make Akash a versatile solution for cloud services:
IP Leases
Akash allows tenants to request publicly routable IP addresses for their services. This feature provides static public IP addresses and static port mappings, enabling the use of all ports within the 1–65,535 range.
The retention of an IP lease is tied to the deployment; closing the lease results in the loss of the reserved IP address.
Persistent Storage
Persistent storage on Akash blockchain allows deployment data to persist throughout the lease duration.
Providers create a volume on disk that is mounted into the deployment, mimicking container persistent storage. This persistence is tied to the lease and is lost during migration or closure.
Authorized Spend
The Authorized Spend feature enables users to authorize spending a set number of tokens from a source wallet to a designated, funded destination wallet.
This functionality is restricted to Akash deployment activities, ensuring that tokens are exclusively used for deployment purposes.
The AKT Token
What is the AKT Token?
AKT is the native token of Akash Network, essential for the platform's operations. It is used for securing the network through staking, paying for cloud services, and acting as the primary utility for on-chain activities.
Staking and Utility
AKT holders can stake their tokens to validate transactions, earning rewards in return, which enhances Akash Network's security and decentralization, similar to the staking models used in Avalanche Network and the Injective blockchain.
Additionally, AKT serves as the unit of payment for cloud services provided on Akash.
AKT Tokenomics
At its genesis in September 2020, Akash Network distributed 100 million AKT tokens among various stakeholders. The allocations were as follows:
Investors (34.5% or 34.5 million AKT): After a one-year lock-up, approximately 17.3 million AKT were released, with about 8.6 million AKT unlocking every six months thereafter.
Team & Advisors (27% or 27 million AKT): Following a one-year lock-up, 11 million AKT were released, with subsequent releases of 6 million AKT every six months.
Decentralized Cloud Foundation (19.7%): An initial 1 million AKT unlocked at launch, with the remainder vesting over several intervals.
Ecosystem, Testnets, Vendors & Marketing: Smaller allocations with varying lock-up periods and graded vesting schedules.
Additionally, approximately 289 million AKT are scheduled for release as inflationary emissions to stakers.
How to Get Started with Akash Network
Create a Wallet
Users require an AKT-compatible wallet to store and manage tokens. Several platforms, including self-custody wallets, centralized exchanges, and institutional custodians, support AKT.
Users should research thoroughly and choose a suitable wallet that fits their needs. Self-custody wallets are recommended for long-term cryptocurrency holding.
Buy AKT Tokens
Follow these steps to buy AKT tokens:
Sign up or log into a cryptocurrency exchange that supports AKT.
Search for AKT tokens and buy them using approved payment methods.
Transfer the tokens to your AKT-compatible wallet.
Staking AKT Tokens
Token holders who stake AKT earn rewards in exchange for securing the network, facilitating transaction validation, and contributing to the stability of the Akash blockchain.
We’ve written a comprehensive guide to the best Akash validators to help you get started with staking.
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Akash Team and Partners
Overclock Labs, Inc. operates as a software development company focusing on automating cloud infrastructure management for enterprises.
Core Team of Akash Network
The core team of Overclock Labs, the creators of Akash, includes the CEO, CTO, and COO, who are actively building and promoting the network.
You can find the entire team on the official website.
Greg Osuri – CEO: Co-founder and CEO of Akash Network, Greg previously founded AngelHack, the world’s largest hackathon organization. Greg has also helped launch companies like Firebase, which was later acquired by Google.
Adam Bozanich – CTO: Co-founder and Chief Technology Officer of Akash, Adam previously led software development at Symantec and worked as an engineer for Topspin, which was acquired by Apple. He holds a U.S. patent for inventing network protocol fuzzing.
Boz Menzalji – COO: As COO, Boz manages strategy, business development, and operations for Akash Network. Previously, he was General Manager at Refereum and has led business development for several SaaS startups.
What is Akash: Closing thoughts
Akash Network represents a new approach to cloud computing, leveraging blockchain to decentralize the market and make cloud resources more accessible and affordable.
By addressing the limitations of traditional cloud providers, such as high costs, privacy concerns, and limited choice, Akash provides a compelling alternative that empowers users and reduces reliance on centralized entities.
Whether you're an individual developer or a company seeking scalable and cost-effective cloud infrastructure, Akash offers a robust solution.
FAQ about Akash Network
What is Akash Network?
Akash Network is a decentralized cloud computing platform leveraging blockchain to create an open marketplace for computing resources. It provides a cost-effective alternative to traditional cloud providers like AWS, allowing anyone with spare capacity to participate.
How does Akash ensure data security?
Akash secures data through blockchain technology, offering transparency and reducing risks associated with centralized data storage. Its decentralized structure helps enhance security by avoiding single points of failure.
What is the role of the AKT token?
AKT is the native token used for paying cloud services, staking to secure the network, and participating in governance. It is central to Akash's ecosystem and helps maintain network security.
How do I start staking AKT tokens?
To start staking AKT tokens, you'll need an AKT-compatible wallet and access to a cryptocurrency exchange to buy tokens. Once you have AKT, you can stake it to earn rewards. Check our guide on the best Akash validators for more details.
What is the Cosmos SDK, and why is it used?
Cosmos SDK is a modular framework for building blockchains. Akash uses Cosmos SDK for its scalability, interoperability, and ease of integration with other Cosmos ecosystem projects, allowing Akash to interact seamlessly with other networks.
How does Akash use Kubernetes?
Akash integrates Kubernetes for automating the deployment, scaling, and management of containerized applications. This integration ensures that applications hosted on Akash are as reliable and scalable as those on traditional centralized platforms.
What are IP leases in Akash Network?
IP leases allow tenants to request static public IP addresses for their services. These IP addresses are tied to a deployment, providing stable access until the lease or deployment ends, after which the IP address is released.
What is cloud computing?
Cloud computing is the delivery of computing services over the internet. It allows users to access resources like storage, databases, and servers on-demand without needing physical infrastructure, making it more flexible and cost-efficient.
What is Software Definition Language (SDL)?
Software Definition Language (SDL) is a YAML-based language used by Akash to define cloud infrastructure requirements. It allows users to specify their computing needs simply, enabling easy deployment of applications on the Akash Network.
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Maximize your AKT staking rewards : earn more, start now.
