Akash Network (AKT): A Decentralized Cloud for DeFi

UTC by Beatrice Mastropietro · 10 min read
Akash Network (AKT): A Decentralized Cloud for DeFi
Photo: Shutterstock

Akash Network is a decentralized cloud computing platform that enables developers to build and deploy decentralized applications. In this guide, we will explore the features of Akash Network and how it can be used for Decentralized Finance (DeFi).

If you’re a decentralized application (dApp) developer, you know that cloud computing is essential to your work. But did you know that a few large providers dominate the current cloud computing marketplace? This can make it difficult for smaller developers to access the resources they need at a price they can afford. The Akash Network (AKT) is seeking to change all that. Akash is a decentralized cloud computing marketplace that seeks to democratize the power of cloud computing and provide more flexible and affordable services to end users. With Akash, developers can access a wide range of resources, making it easier than ever to build amazing dApps.

The Akash Network is built on the Interplanetary File System (IPFS), a decentralized network that allows for storing and sharing data in a peer-to-peer fashion. This means anyone can join the Akash Network and contribute their unused computing resources to the marketplace. In return, they’ll be compensated with AKT, the native token of the Akash Network. This decentralized approach to cloud computing has a number of advantages over traditional centralized systems.

For one, it’s more secure. With Akash, there is no single point of failure. Because Akash runs on IPFS, data is stored in a distributed manner, making it tamper-proof. Besides, Akash is more resilient to censorship than traditional systems because there is no central authority to censor content.

Akash Network Defined

Akash Network is a decentralized cloud service platform that enables anyone to launch and operate decentralized applications with ease. The Akash Network (AKT) provides a marketplace for cloud resources that allows users to buy and sell excess capacity from any provider, including major public clouds such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure.

The Akash Network is powered by the native AKT token, which is used to pay for cloud services on the platform. It also features a unique staking mechanism that allows users to earn rewards for participating in the network.

Akash History and Roadmap

Akash Network is a decentralized cloud platform that enables anyone to launch and operate applications with unprecedented security, efficiency, and affordability. The project was launched in 2017 by a team of experienced engineers and entrepreneurs from UCLA, Stanford, Google, and Microsoft.

The Akash Network roadmap includes the following milestones:

  • 2017: Launch of Akash Network testnet;
  • 2018: Launch of Akash Network mainnet;
  • 2019: Launch of Decentralized Exchange (DEX);
  • 2020: Launch of Akash ID (decentralized identity service);
  • 2021: Launch of Akash Marketplace (decentralized application store).

The Akash Network is live and operational with a growing community of developers and users. The team is constantly releasing new features and improvements, making the network more scalable, secure, and user-friendly.

The Akash Network has the potential to disrupt the cloud computing industry and become the go-to platform for decentralized applications. With its intuitive interface and powerful features, the Akash Network is well on its way to becoming the leading platform for Decentralized Finance (DeFi) applications.

How Akash Works

The Akash Network enables anyone to launch and operate applications with confidence at scale. Akash does this by allowing users to rent compute and storage resources from a network of providers in exchange for AKT, the native token of the Akash Network.

Using the Akash platform, developers can launch infinitely scalable applications without worrying about provisioning or managing infrastructure. And because Akash runs on a decentralized network of providers, users can be confident that their applications will always be available, even if individual providers go offline.

With Akash, you pay only for the resources you use, and you can trade or sell those resources on the open market when you’re finished with them. This makes Akash the most cost-effective way to launch and operate applications at scale.

The Akash Network is powered by a novel consensus algorithm called Delegated Proof of Stake (DPoS). Under DPoS, users stake AKT to vote for validators, who are responsible for verifying transactions and maintaining the blockchain. The more AKT a user stakes, the more weight their vote has.

Validators are rewarded for their work with transaction fees. They must also keep a portion of their rewards in an unbonded reserve to be eligible to participate in consensus. If a validator becomes unavailable or tries to cheat, their unbonded reserve is slashed, and they are removed from the network.

The Akash Network also features a decentralized exchange (DEX), which allows users to buy and sell compute and storage resources on the open market. The DEX is powered by an Automated Market Maker (AMM) that ensures there is always enough liquidity for users to buy or sell resources at fair prices.

The Akash Network is launching with support for Ethereum (ETH) applications, and it will eventually support any blockchain or platform that can run smart contracts. This makes Akash the perfect platform for launching decentralized applications, from DeFi protocols to gaming platforms and everything in between.

If you’re looking for a scalable, reliable, and cost-effective way to launch and operate your decentralized application, Akash is your platform.

Akash Network’s Structure

Akash Network is made up of three main components:

  1. The Akash Decentralized Exchange (DEX). The DEX is a marketplace where users can buy and sell compute resources. The DEX allows users to list their unused compute resources and set a price. Other users can then browse the listings and purchase the resources they need.
  2. The Akash Staking Pool. The staking pool is where users can deposit their tokens and earn interest on them. The staking pool provides liquidity for the DEX and secures the network.
  3. The Akash Nodes. Akash Nodes are the machines that provide the compute resources. Anyone can run Akash Nodes, and they are rewarded with tokens for providing their resources to the network.

Akash Network has partnerships with a number of companies in the blockchain space, including ConsenSys, Status, Chainlink, and MakerDAO.

Akash Marketplace

The Akash Marketplace is a decentralized cloud marketplace that enables users to buy and sell cloud resources transparently, openly, and efficiently. The marketplace is powered by the Akash Network token (AKT), an ERC20 token used to pay for cloud resources on the network.

The Akash Marketplace offers a variety of features that make it an attractive option for users looking for a decentralized cloud solution. First, the marketplace offers users a wide range of options when it comes to cloud providers. There are over 20 different cloud providers on the network as of 2022, each with its unique offering. This gives users the ability to find the perfect provider for their needs.

Second, the marketplace offers competitive pricing for cloud resources. The market sets prices, and users can be sure they are getting a fair price for the resources they purchase.

Third, the marketplace is powered by smart contracts, which ensure that all transactions are transparent and secure. This also means that there is no need for a third party to oversee or manage the marketplace.

Fourth, the Akash Marketplace has a strong community of developers constantly working on new features and improvements. This ensures that the marketplace is constantly evolving and growing to meet the needs of its users.

Overall, the Akash Marketplace is an excellent option for users looking for a decentralized cloud solution. The marketplace offers a wide range of options, competitive pricing, transparency, security, and a strong community of developers. If you are looking for a cloud solution that offers all of these things, then the Akash Marketplace is worth considering.

AKT Token

The AKT token is the native cryptocurrency of the Akash Network. It is used to power all transactions on the network and provides access to Akash’s decentralized cloud services. The total supply of AKT is fixed at 10 billion tokens.

The AKT token was distributed through a public sale in which 8% of the total supply was sold to early supporters and contributors. The remaining 92% of tokens are reserved for different purposes, including:

  • 60% for staking and governance (to be released over time);
  • 20% for the Akash team (locked for 4 years);
  • 10% for ecosystem development (to be used to incentivize adoption and growth);
  • 2% for airdrops and bounties.

The primary use case for the AKT token is staking, which is required to run a validator node on the network. Validators earn rewards for verifying transactions and maintaining the ledger paid out in AKT tokens. In addition, users can lock up their AKT tokens to access discounted cloud services on the Akash Network.

The AKT token is listed on a number of major cryptocurrency exchanges, including Binance, Huobi, and OKEx. It is also available for purchase with fiat currencies on the Akash Network’s own decentralized exchange, Akash DEX.

Use Cases

Akash Network (AKT) provides a decentralized cloud that can be used for various DeFi applications. Here are some examples of how AKT can be used in the DeFi space:

  1. Decentralized exchanges. AKT can be used to host decentralized exchanges (DEXes). DEXes built on AKT will benefit from the network’s low latency and high throughput.
  2. Lending platforms. AKT can be used to build lending platforms. Lenders can use the Akash Network to power their lending operations and borrow against their collateral.
  3. Savings platforms. AKT can be used to build savings platforms. Users can earn interest on their savings by staking their AKT tokens.
  4. Insurance platforms. AKT can be used to build insurance platforms. Insurers can use the Akash Network to power their operations and offer insurance products to users.
  5. Predictive markets. AKT can be used to build predictive markets. Market participants will be able to use the Akash Network to trade on the outcomes of events.
  6. Identity management. AKT can be used to build identity management systems. Users can use the Akash Network to store and manage their identity information.
  7. Supply chain management. AKT can be used to build supply chain management systems. Businesses can use the Akash Network to track and manage their supply chains.
  8. Decentralized applications. AKT can be used to host decentralized applications (dApps). DApps built on AKT will benefit from the network’s low latency and high throughput.
  9. Data storage. AKT can be used to store data. Users are able to employ the Akash Network to store their data in a secure and decentralized manner.
  10. Machine learning. AKT can be used for machine learning. Akash’s machine learning capabilities can be used to train models and run predictions on the data stored on the network.

Benefits of Akash

Akash Network’s key benefits include:

  • Security. Akash Network is secured by Proof-of-Stake consensus and utilizes Kubernetes security primitives to ensure that user data is safe and secure.
  • Scalability. Akash Network can scale horizontally to support many users and transactions.
  • Reliability. Akash Network is powered by a decentralized network of nodes that trusted institutions worldwide run. This ensures that the network is always available and can resist attacks.
  • Developer friendly. Akash Network provides an easy-to-use platform for developers to launch DeFi applications quickly and efficiently.
  • Cost-effective. Akash Network’s decentralized infrastructure is more cost-effective than traditional cloud providers.

Bottom Line

Akash Network (AKT) is a decentralized cloud platform that enables developers to build and deploy applications on a blockchain network. The native token of the Akash Network is AKT, which is used to pay for resources on the network. The Akash Network offers developers access to a wide range of tools and services to help them build decentralized applications.

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FAQ

What is Akash network?

Akash Network is a decentralized cloud service that enables the deployment and hosting of applications and services on a secure, scalable, and cost-effective platform.

When did Akash appear?

Akash Network was first introduced in October 2017 by Akasha Foundation, a nonprofit organization based in Zug, Switzerland. The foundation’s goal is to promote and support the development of decentralized technologies that can help further the adoption of the Internet of Value.

How does Akash work?

Applications are deployed onto the Akash Network in so-called “deployments.” Deployment is simply a smart contract that encodes the application logic and can be deployed by anyone. Once deployed, an application is accessible to anyone who wants to use it. Users pay for the resources they consume, and fees are paid to the node operators who provide those resources. The Akash Network is highly scalable, with minimal latency and transaction costs. It is also designed to be secure, with a number of features that make it resistant to hacking and other attacks.

What are the key elements of Akash blockchain structure?

Three key components power the Akash network. The Akash Provider allows users to offer their idle computing resources in exchange for AKT. Further, the Akash Consumer allows users to consume computational resources from the network in exchange for AKT. Finally, the Akash Decentralized Exchange (DEX) is responsible for matching providers and consumers and facilitating the exchange of AKT.

What is Akash marketplace?

Akash marketplace is a decentralized cloud platform that enables anyone to deploy and host decentralized applications (dApps) easily. The platform uses AKT, its native token, to power its ecosystem. Akash marketplace is designed to be the go-to platform for dApp developers looking for a safe, secure, and reliable way to deploy their apps.

What is AKT token?

The AKT token is the native utility token of the Akash Network. It performs different network actions, including but not limited to staking, deploying applications, and accessing services.

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