What is Akash? (AKT)
Summary of Akash
- Akash is a decentralized cloud computing platform built with the Cosmos SDK
- The Akash network was launched in 2018 and is maintained by a renowned, global team
- By connecting providers with clients through a decentralized marketplace, Akash has created the first open source cloud platform
- AKT is the native utility and governance token of the Akash Network
Akash is an open-source and decentralized cloud computing platform built using the Cosmos software development kit (SDK) and implemented on the Cosmos blockchain.
Akash allows for the deployment of any cloud-native application, improving price-performance and scale for decentralized applications and organizations on its network. Akash is compatible with many existing cloud applications and allows businesses to participate in the decentralized cloud computing market.
Akash distributes underutilized cloud capacity to provide more efficient and cost effective cloud computing services than centralized alternatives. With its dedication to open source technology, the Akash network claims to be significantly less expensive than existing centralized cloud computing providers.
AKT is the native token powering the Akash network. It is used to govern and secure the network, store and exchange value across user, and incentivize participation in the network.
Who created Akash (AKT)?
The Akash network was launched in March, 2018 by Overclock Labs, a cloud service automation and management company. The network is maintained by a global team of renowned developers including co-founders Greg Osuri, Akash’s CEO and Adam Bozanich, the company’s CTO.
Before Akash, Osuri founded AngelHack, a global developer ecosystem and Overclock Labs, a protocol development company. Bozanich previously led software development at Symantec, a security products provider, One Kings Lane, a home decor business and Marketron, a media sales company.
How does Akash work?
Akash is a decentralized cloud computing marketplace that pools and reallocates idle computing processing power to customers that need it. Akash’s ‘Supercloud’ connects clients with providers through a transparent, distributed leasing service and preserves the benefits of decentralized computation through the Akash blockchain.
The flexibility of the protocol allows for movement between providers while offering performance benefits that come from global deployments. Providers, in turn, earn profits from unused capacity.
Through a virtualization process, computer resources are split into containerized applications. These ‘Containers’ are then leased to ‘Tenants’, the purchasers of cloud services on the network. ‘Providers’ bid on these requests after they are validated as orders, with the lowest bid for requested resources winning the lease.
Through this process, market participants each receive a financial incentive to use the network. Providers profit from monetizing their idle resources and Tenants benefit from lower costs. Marketplace transactions all occur on the Akash blockchain.
The Akash blockchain is secured by a Delegated Proof-of-Stake (DPoS) consensus mechanism. As such, the network depends on a system of validators and delegators. Validators on the Akash network commit new blocks to the blockchain through a voting process, using the tokens staked to them by delegators. Delegators stake their tokens to their chosen validators based on public information provided on the platform.
The protocol also implements a Tendermint algorithm for increased speed and scalability. With its transparent and permissionless process, Akash represents the first open-source, decentralized cloud platform.
Why does AKT have value?
AKT is the native token of the Akash blockchain. The token secures the network through staking and facilitates lease settlements in the Akash marketplace. Leases can also be settled with a number of whitelisted tokens, including Bitcoin (BTC). As such, AKT is used as a unit of measure for pricing settlements in alternative currencies. While leases remain denominated in AKT, an option exists to lock-in an exchange rate between AKT and the currency chosen for settlement.
Users are rewarded proportionally to the number of AKT tokens they stake and the length of their commitment. The network allows flexibility in the length of time participants can stake their tokens, varying from one month to one year.
AKT also functions as a governance token for the network. The blockchain relies on a set of validators to make decisions by voting on proposals. Proposals submitted to the Akash network are weighted based on the number of tokens staked by the proposer.
At genesis, 100,000,000 AKT were issued from a maximum supply of 388,539,008. AKT was introduced using an inflationary model to help lower the costs of services provided and accelerate early adoption. Inflation rates decay exponentially each day and halve over a period of two to four years.
Akash boasts an expanding list of data center, technology and capital partners. Notable capital partners include TRG Capital, Alpha Block Investments, Forbole, PeopleFund, Outpost Capital, AGE, ChainLayer and Wakem Capital Management.
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Why Buy AKT?
The Akash network aims to provide decentralized cloud services at a fraction of the cost of existing legacy services. AKT is central to the goals of the network.
Network participants exchange AKT for cloud computing services on the platform. Holders of AKT can also stake their tokens for rewards and to increase their governance authority. Stakers may also delegate voting power to validators on the platform.
Those interested in using a more decentralized cloud computing service may be interested in purchasing AKT.