What is Akash Network（AKT）？The first open-sourced cloud service

What is Akash Network? Akash Network is a decentralized, peer-to-peer marketplace for cloud services. Often self-described as the Airbnb of cloud services, it allows users and companies of different scales to use their services in a quick, steady and cost-efficient manner. Akash Network allows subscribers to execute applications in their cloud services for up to a third of the cost in traditional options like Amazon Web Services (AWS) - currently the most popular cloud provider.

What makes Akash more attractive than other services?

- Cheaper than other cloud services, only a third of the cost of products like AWS and Google Cloud.
- Easy to deploy and utilize - detail your requirements, choose the cheapest option from cloud providers in the Akash Marketplace and you’re ready to go.
- Ability to deploy services through any cloud-native application.

The AKT Token:

Used as a governance tool for not only project upgrades but even its tokenomics, making Akash Network a truly decentralized and open-sourced service.

The token is also used as an incentive for cloud providers to offer low prices to customers, receiving AKT in rewards. It also provides the traditional staking rewards for investors.

Akash’s network is expected to provide further rewards once the platform crosses a particular Gross Merchandise Value threshold.


As investors and enthusiasts of the crypto markets, it is not uncommon to lose grasp of just how diverse and exponentially branching the ecosystem truly is. It seems like every day new functionalities and ways to leverage blockchain are introduced into our daily lives and products from several different verticals.

That includes the field of SaaS, or Software as a Service, where companies introduce sub_script_ion-based software models to be adopted and integrated into other companies or individual users. In this particular field, Akash Network remains one of the most interesting projects to leverage blockchain technology, through its decentralized cloud services.

In this article, we have a look at the Akash Network and what makes this company special in blockchain - its services, tools, technology and functionalities of the AKT token.

What is Akash Network?

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In a nutshell, Akash Network is a decentralized, peer-to-peer marketplace for cloud services. Often self-described as the Airbnb of cloud services, it allows users and companies of different scales to use their services in a quick, steady and cost-efficient manner.

As part of the advantages of being an open cloud platform, Akash Network allows subscribers to execute applications in their cloud services for less than the cost of Amazon Web Services (AWS) - currently the most popular cloud provider.

The process works in the following manner; Firstly, the potential subscriber defines their application needs such as the needed CPU, Memory and Storage to run their application. That is followed by a price set by the customer. Since Akash is a peer-to-peer cloud service, independent providers within the network will bid on providing those demands along with their respective prices.

Once the user chooses an option, preferably the one with the lowest price, they can deploy the application right away without needing to set up or manage the servers - something that is always needed in AWS and Google Cloud services. The entire deployment process can be conducted through the Akash Marketplace and users can also receive rewards in AKT according to their performance, which will address later in the AKT token section.

What makes Akash more attractive than traditional platforms?

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For starters, as the developers mention in their official documents and previously in this article, Akash is actually cheaper than centralized services like AWS and Google Cloud. According to the network, users are able to deploy their applications for up to a third of the cost that would usually be needed for other services, which is quite a substantial difference.

Due to its decentralized peer-to-peer nature, Akash’s cloud services are also much easier to deploy and utilize - there’s no need to self manage the systems or constantly set up your required needs, as the whole process was previously established before entering the marketplace bidding with providers. It gives you control over the fees you are paying and also the features that you’d like to include, which can be updated anytime.

Also, unlike any other service that is known to date, the Akash Network is able to deploy through any cloud-native application. Therefore, it supports builds in any architecture so subscribers don’t have to rewrite their application in case they were previously using a different service that only supported a specific process.

The AKT token

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The AKT token, built on the Cosmos blockchain much like Akash’s marketplace and overall blockchain structure, serves a range of different functions for the community of investors and subscribers of their cloud services.

The AKT token is used mainly to govern the platform, secure the blockchain technology and incentivize subscribers of the cloud services. Like other decentralized projects that involved crypto such as DAOs, Akash utilizes AKT as a governance tool for participants to vote on updates to the platform. But unlike other initiatives, Akash’s native token also allows holders of AKT to actually make changes on how the tokens are distributed for the foundation’s funds and resources. In most projects that have governance tokens, holders can vote on changes to the project but not its tokenomics. This particular difference makes Akash Network a truly decentralized, open-source project unlike most available in the crypto ecosystem.

AKT also provides quite an original form of incentive, where cloud providers within the network are encouraged to offer lower prices to potential customers and receive AKT tokens in return. There is also the more traditional incentive through staking options for investors of the network to continue contributing to the project’s structure.

Another innovation created through the AKT token is using it as an incentive once the entire network reaches a particular Gross Merchandise Value. Once that occurs, rewards will be provided in AKT across investors and subscribers - which directly contribute to Akash’s business expansion.



Author: Gate.io Researcher: Victor Bastos
* This article represents only the views of the researcher and does not constitute any investment suggestions.
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