Imagine a platform where you can buy and sell computing resources in a decentralized marketplace. Well Akash Network does exactly that and in this video we are going to find out how.
Akash Network also known by the market ticker AKT, is a blockchain-based and decentralized cloud computing platform that aims to provide a secure and open marketplace for cloud resources.
It is designed to enable users to lease their idle computing resources, in this case, GPU power.
Akash Network focuses heavily on AI developers and researchers who require the ability to process immense amounts of data for their machine learning algorithms.
In principle, Akash aims to become the intermediary between those who need large quantities of GPU power, and those who have a large quantity of GPU power sitting idle.
What is Akash Network?
Akash was founded by Greg and Adam, with their whitepaper being released in December 2017 and the Akash blockchain itself would go live in 2020.
At its core, Akash Network is an open-source cloud-based marketplace that allows users to buy and sell computing resources.
Akash operates as a decentralized public utility, which includes a “reverse auction” system that ensures their prices are always the most competitive on the market.
But how exactly does a reverse auction work?
Instead of who will pay the most, it’s a case of who will do the work for the least. So, say you’ve got $100 to spend for a certain amount of GPU power.
In a reverse auction, you name your price and your requirements, for example how much processing power you need, and then GPU-power providers compete to provide the service cheaper.
Maybe one GPU-power provider will give you the required processing power for $90. Maybe another will do it for $80, etc, until it reaches a floor where no one is willing to do the work for less.
Ultimately, this ensures the cheapest possible price for the user, which fits with Akash’s key objective of being a developer and user-centric platform first and foremost.
Though, that leads us to the question. How does it all work?
How does Akash Network work?
The Akash Network was built using the Cosmos SDK, meaning it is a Proof-of-Stake based blockchain, which uses the Tendermint consensus mechanism to verify its transactions, and utilizes a Byzantine Fault Tolerance (BFT) to ensure accuracy.
But that is a lot of crypto buzzwords. So, let’s quickly get our definitions defined so we’re all on the same page.
First, the Cosmos Software Development Kit, or SDK, is a blockchain development framework that empowers developers to create their own customized blockchain networks.The SDK operates using a modular architecture, which allows developers to assemble and customize various components to suit their specific needs.
Next, and key to its functionality, is the Tendermint consensus mechanism, which is a Proof-of-Stake based consensus mechanism that provides a secure and efficient consensus.
To ensure a secure and efficient consensus, Tendermint utilizes a Byzantine Fault Tolerance to ensure the accuracy of the data being provided to the blockchain.
Byzantine Fault Tolerance, or BFT, is a concept in distributed systems, which ensures the reliability of a network even when some nodes act maliciously or fail. BFT functions by having nodes in the network communicate and agree on a single, consistent state despite potential discrepancies or malicious actions.
In short, as long as at least two-thirds of the nodes are honest and agree on a value, the network can reach a consensus and continue through faults and the occasional bad actors.
Lastly, the Akash network has the SDK’s Inter-Blockchain Communication Protocol, or IBC Protocol, enabled which allows interoperability between different blockchains in the Cosmos ecosystem, creating a decentralized internet of independent blockchains.
As you can see, the main benefit of the Cosmos SDK for developers is that this framework simplifies blockchain development, offering flexibility and scalability while maintaining security and compatibility with other blockchain networks.
What makes Akash Network unique?
Akash was the first open-source, decentralized cloud platform, which is its main selling point.
Though, more specifically, what makes Akash truly unique is the way it has not pitched itself as a cryptocurrency just used for network payments, but pitches itself more so as a unit of measure for pricing settlements on its platform.
That is because, on the Akash platform, you don’t need to pay in AKT for their services. There are a handful of whitelisted cryptocurrencies they are willing to accept, though AKT will be the unit of measurement for the prices regardless of what currency you pay in, to ensure consistency for the user.
Meaning if you want to buy idle GPU power in BTC, on Akash you can.
In a summary, what makes Akash unique from its peers, it’s a mix of all the above.
It’s a permissionless, 24/7, decentralized cloud-computing service that provides quick, cheap, and green GPU power to those who need it.
But how about the Tokenomics?
AKT Tokenomics
Like most Proof-of-Stake based tokens, AKT can be used for the classics of payments, staking for rewards, and governance.
AKT has a maximum supply of around 388 million tokens, with 100 million being released at launch, and the rest slowly being released over time.
In the beginning, AKT was launched with a high level of inflation which helped to keep the costs of service low and increased early adoption.
This inflation rate is set to halve every 2-to-4 years, until 2030 when the last of the 388 million will have been released.
This will lead to AKT going from an inflationary to a deflationary token as the rate of tokens being used exceeds the rate at which they are produced.
Akash has managed to create a project with real-world utility and a legitimate use case and application for that end.
In short, if you need GPU power for a project, Akash knows a person, and they’ll link you up.
With the demand for idle computing power only likely to increase with time, it seems possible that the best days for the Akash network may still lay ahead.
Though, as always, it is wise to remember that nothing is guaranteed in crypto, of course.
Akash Network FAQ
What is Akash Network?
Akash Network is a blockchain-based and decentralized cloud computing platform that provides a secure and open marketplace for cloud resources, particularly focusing on GPU power for AI developers and researchers.
When was Akash Network founded and by whom?
Akash Network was founded by Greg and Adam. Their whitepaper was released in December 2017, and the Akash blockchain went live in 2020.
What blockchain technology does Akash use?
Akash Network was built using the Cosmos SDK, which means it’s a Proof-of-Stake based blockchain that uses the Tendermint consensus mechanism and Byzantine Fault Tolerance (BFT) for accuracy.
How does Akash Network work?
Akash operates as a decentralized public utility with a “reverse auction” system. Users name their price and requirements, and GPU-power providers compete to offer the service at the lowest price.
What makes Akash Network unique?
Akash was the first open-source, decentralized cloud platform. It’s unique in how it positions its token (AKT) as a unit of measure for pricing settlements rather than just a cryptocurrency for network payments.
Can users pay with cryptocurrencies other than AKT on Akash?
Yes, Akash accepts a handful of whitelisted cryptocurrencies for payment, though AKT is used as the unit of measurement for prices to ensure consistency.
What is the total supply of AKT tokens?
AKT has a maximum supply of around 388 million tokens, with 100 million released at launch and the rest being released over time.
How are AKT tokens used in the ecosystem?
AKT tokens can be used for payments, staking for rewards, and governance within the Akash Network ecosystem.
Is AKT an inflationary or deflationary token?
AKT started as an inflationary token to keep service costs low and increase early adoption. The inflation rate is set to halve every 2-to-4 years until 2030, after which it will become deflationary.
What is Akash’s main target audience?
Akash Network primarily focuses on AI developers and researchers who require large amounts of GPU power for processing data in machine learning algorithms.