Akash Network Meaning
What Is Akash Network?
Akash Network is an on-chain decentralized and open-source cloud computing platform that connects compute buyers and compute sellers via its own marketplace. In other words, it links server owners in need of computing power to host their applications with other network users willing to rent out or lease compute capacity.
Greg Osuri and Adam Bozanich co-founded Akash in March 2018. The network aims to provide users with a more secure, flexible, and cost-effective cloud computing resources alternative to traditional cloud services. Akash is built using the Cosmos software development kit (Cosmos SDK). It operates on the Cosmos network as an app-chain or application-specific blockchain.
How Does Akash Network (AKT) Work?
Akash uses a delegated proof of stake (DPoS) consensus algorithm, which means that it is secured by a group of validators and delegators. The validators are responsible for forging new blocks and confirming transactions within the network through a voting process. Delegators, on the other hand, stake the network’s native token, the Akash token (AKT), to vote for their preferred validator based on their reputation. Besides staking, the network’s native token is also used for governance and conducting transactions within the ecosystem.
Here’s how the network works:
- Decentralized marketplace – Its marketplace, the Akash Marketplace, allows users to offer or bid for computing resources. The buyers or users in need of computing power are known as the “Tenants” while the sellers, the ones offering their idle computing power, are known as “Providers.”
- Resource allocation – The purchasers request computing resources and the Providers place their bids on the requests. The lowest bidder wins the lease. The network uses smart contracts to automatically match the bids with the offers.
In summary, the network offers users financial incentives to participate in the network. For instance, the Providers benefit from monetizing their unused computing resources while the Tenants acquire additional computing power at lower costs.