Akash Network is revolutionizing the cloud computing industry by introducing a decentralized, blockchain-powered marketplace for computing resources. Unlike traditional cloud providers that operate under centralized control, Akash enables peer-to-peer transactions between resource providers and consumers, creating a more open, affordable, and resilient infrastructure. Built on the Cosmos SDK and secured through a Proof-of-Stake (PoS) consensus mechanism, Akash leverages its native AKT token to power transactions, incentivize participation, and maintain network integrity.
This innovative platform allows anyone—from data centers to individual users with spare computing capacity—to become cloud providers. Consumers, in turn, can deploy applications using cost-effective, secure, and transparent resources from a global network of nodes. As demand for decentralized infrastructure grows, Akash stands out as a key player in the Web3 ecosystem.
Founding and Development
Akash Network was founded in 2015 by Greg Osuri and Adam Bozanich under Overclock Labs. The vision was clear: to democratize cloud computing by eliminating monopolistic pricing and vendor lock-in associated with giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).
The project launched its Mainnet 1.0 in September 2020, featuring a genesis supply of 100 million AKT tokens and a maximum cap of 388,539,008 AKT. These tokens were distributed among investors, the Akash Network Foundation, core team members, and early supporters, with a public sale offering 1.8 million AKT.
In March 2021, Akash rolled out Mainnet 2.0, marking its transition to a fully public and live decentralized cloud infrastructure. This version enabled developers to test deployments and introduced the Supermicro—a compact supercomputer that allowed everyday users to contribute their idle computing power and earn passive income in AKT tokens.
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Major Upgrades and Technological Advancements
Akash has consistently evolved through strategic upgrades to enhance functionality, usability, and cross-chain compatibility.
- Mainnet 4 (November 2022): Introduced IP leases, enabling services to bind to publicly routable IP addresses—a critical feature for running public-facing applications. The upgrade also integrated Cosmos IBC (Inter-Blockchain Communication) protocol version 3 and Interchain Accounts (ICA), improving interoperability within the Cosmos ecosystem.
- Mainnet 6 (August 2023): Brought support for GPU resources, opening the door for AI/ML workloads, high-performance computing, and graphics-intensive applications. This update also enabled USDC settlement, providing stablecoin payment options for lease agreements. Additionally, Akash laid the foundation for an open-source marketplace for high-density GPUs, initially focusing on NVIDIA hardware with plans to expand support.
These upgrades have positioned Akash as a go-to platform for decentralized AI, machine learning models, and scalable web applications requiring powerful compute resources.
The Role of the AKT Token
The AKT token is the lifeblood of the Akash Network. As a utility token built on the Cosmos hub, AKT serves multiple critical functions:
- Staking and Security: Providers and validators stake AKT to secure the network and ensure service reliability.
- Governance: Token holders can participate in decision-making processes, voting on protocol upgrades and ecosystem developments.
- Payment and Settlement: AKT is used to pay for cloud leases, though recent updates now allow USDC settlements.
- Incentives: Active participants—including validators, developers, and providers—are rewarded with AKT for contributing to network growth.
AKT 2.0: Expanding Utility and Value
The upcoming AKT 2.0 upgrade aims to deepen token utility and drive long-term value creation. Key features include:
- Take-and-make fees: Incentivizing market makers and liquidity providers.
- Stable payments: Allowing lease settlements in stablecoins like USDC.
- Incentive Distribution Pool: Funding ecosystem growth through developer grants and provider subsidies.
- Public Goods Fund: Supporting open-source projects and community-driven initiatives.
By expanding use cases beyond staking and payments, AKT 2.0 seeks to transform the token into a foundational asset within the decentralized cloud economy.
Core Features of Akash Network
IP Leases
Akash allows users to request publicly routable IP addresses for their deployments. This enables static public IPs and port mappings—essential for hosting websites, APIs, or any service requiring consistent external access. While migration between deployments preserves the reserved address, availability depends on provider capabilities.
Persistent Storage
Deployments can utilize persistent storage, where disk volumes are mounted directly into containers. Data remains intact throughout the lease period but is lost upon migration or termination. Each service supports one persistent volume per definition, ensuring data consistency during runtime.
Authorized Spend
This feature lets users authorize a specific amount of tokens from one wallet to be spent on deployments in another wallet. It enhances collaboration by allowing teams to manage shared infrastructure without pooling funds into a single account—ideal for decentralized organizations (DAOs) and developer collectives.
Fractional uAKT
To improve pricing precision, Akash introduced fractional uAKT (micro-AKT), enabling granular billing for low-resource workloads. This eliminates artificial minimum costs, making small-scale deployments more economical.
Deployment Shell Access
Operators gain CLI/shell access to running containers, allowing real-time command execution and debugging. Files can also be copied from active deployments to local machines for inspection—streamlining troubleshooting and monitoring.
Deployment HTTP Options
With http_options in the Service Definition Language (SDL), users can fine-tune HTTP endpoint configurations such as health checks, headers, and routing rules. This ensures seamless transitions during deployment updates without service interruption.
Why Akash Stands Out
- Decentralization: Running on the Cosmos network ensures no single point of failure, enhancing security and censorship resistance.
- Global Marketplace: Providers list available resources globally, creating dynamic pricing and efficient allocation.
- Containerization: Leverages Docker containers for easy packaging, deployment, and scaling of applications.
- Security: Blockchain-based verification and cryptographic proofs protect data integrity and transaction authenticity.
- Economic Incentives: The AKT token motivates providers to offer reliable resources while rewarding participation.
- Open Source: Full transparency fosters trust, innovation, and community-driven development.
- Cost Efficiency: By cutting out intermediaries, Akash delivers cloud computing at up to 70% lower cost than traditional providers.
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Frequently Asked Questions (FAQ)
Q: What is Akash Network used for?
A: Akash Network provides decentralized cloud computing services, allowing users to deploy applications using resources from a global network of providers. It’s ideal for developers, startups, and AI projects seeking affordable, secure, and scalable infrastructure.
Q: How does Akash compare to AWS or Google Cloud?
A: Unlike centralized providers, Akash offers lower costs due to its peer-to-peer marketplace model. It also provides greater transparency, avoids vendor lock-in, and supports permissionless access—making it a compelling alternative for Web3 and decentralized applications.
Q: Can I run AI models on Akash?
A: Yes. With GPU support introduced in Mainnet 6, Akash is well-suited for AI/ML training and inference workloads. Developers can deploy large language models (LLMs) or computer vision systems using high-performance NVIDIA GPUs available through the network.
Q: How do I become a provider on Akash?
A: Anyone with compatible hardware can become a provider by staking AKT tokens and listing their resources on the marketplace. Users can start with consumer-grade GPUs or scale up using server-grade infrastructure.
Q: Is Akash secure?
A: Yes. Akash uses blockchain-based verification, cryptographic proofs, and staking mechanisms to ensure provider accountability and data integrity. Container isolation further enhances security by sandboxing deployments.
Q: What is the future of AKT?
A: With AKT 2.0 on the horizon, the token is poised to gain broader utility through enhanced incentives, stablecoin settlements, and ecosystem funding—potentially increasing demand and long-term value.