What is Akash Network? Introduction to Decentralized Cloud Services Platform

What is Akash Network

Image:https://akash.network/

Akash Network is a decentralized cloud computing platform built on the Cosmos ecosystem. It allows individuals or organizations to rent out idle computing resources (such as CPU, GPU) to developers and projects, known as the 'Airbnb of Web3'.

Traditional cloud computing services (such as AWS, Google Cloud) are usually expensive and centralized in terms of permissions, while Akash, through blockchain technology and open-source protocols, provides a more flexible, open, and cost-effective alternative. Its core goal is to break the monopoly of centralized tech giants on computing resources, allowing more people to access cloud computing capabilities freely and efficiently.

Operating Mechanism of Akash Network

The platform operation process of Akash can be summarized in the following four steps:

• Suppliers (Providers)Any user with server resources can connect to Akash, provide CPU/GPU power, and set service prices.

• Demand side (Tenants): Developers submit deployment requests, including required resources, operating system, runtime environment, etc.

• Decentralized reverse auction: Multiple suppliers submit quotations based on demand, and the system automatically selects the service provider with the best cost performance ratio.

• Deployment and VerificationAfter the contract is signed, the application will be automatically deployed, and relevant data will be recorded on the chain to ensure transparency and trustworthiness.

The entire process is completed without intermediaries and automatically, achieving true decentralization cloud computing.

Akash Network: Fundamental and Token Economic Analysis

The native token of Akash Network is AKT, it plays a central role in the entire ecosystem and has the following functions:

1）Network Security and Staking Rewards

Users can participate in the consensus mechanism (PoS) by staking AKT to maintain network security. The current staking annual yield is 10%-13%Between, non-technical users can also obtain rewards by delegating to validators.

2) Governance Participation

Staking AKT can be used to participate in on-chain governance, such as protocol upgrades, parameter adjustments, community fund allocation, etc. Governance weight is allocated based on the amount of coins held and the duration of staking.

3) Payment and Resource Pricing

AKT is the unit of account in the Akash Network, and it is the default bidding payment when deploying leasing services, with lower costs (4% fee). The platform also supports stablecoins (such as USDC) for payment, but with higher fees (20%), which mechanismically encourages the use of AKT.

4) Inflation and Destruction Mechanism

Akash adopts an inflation model (with a maximum annual inflation of 13%) to incentivize network participants. A portion of the transaction fees will be burned, creating a certain deflationary mechanism that helps maintain the long-term value of the token.

The application scenarios and market performance of Akash Network

Akash is not limited to general computing services, its use cases include but are not limited to:

• Web3 Node Deployment and Backend Services

• AI model inference and training

• Video transcoding and data analysis tasks

• Automated testing and development environments (such as CI/CD)

Especially in AI and DePIN (Decentralized Physical Infrastructure)In the current hot trend, Akash is becoming the preferred platform for developers to deploy compute-intensive tasks.

Image:https://www.Gate.com/trade/AKT_USDT

Price performance aspectIn Q1 2025, AKT fluctuated with the overall market. As of May 10th, the price is 1.7 US dollarsLeft and right, there has been significant volatility recently, so investment needs to be cautious of risks.

Summary

Akash Network is a new decentralized cloud platform that breaks the centralized limitations of traditional cloud services, providing a more open, customizable, and cost-effective cloud computing capability. It integrates global idle resources through blockchain bidding mechanisms to provide elastic computing infrastructure for AI, Web3, DePIN, and other fields. Despite the market fluctuations of its native token AKT, Akash's first-mover advantage and continuous ecological expansion in the decentralized cloud services track make it one of the most promising projects in this field.

In the future, as the demand for decentralized computing grows, Akash Network may play an increasingly important role. However, for ordinary users, it is still necessary to fully understand its mechanisms and risks before participating and make rational judgments.