Akash Network: The Future of Decentralized Computing for AI?

Akash is an decentralized open network that allows users to buy and sell computing resources securely and efficiently.

In this Akash network review, I’ve taken a deep dive into the Akash network, the tokenomics, use cases, the team behind Akash, and much more to help you DYOR!

This article is provided for informational and entertainment purposes only. It is not intended to be, nor does it constitute, any form of financial advice or recommendations to buy, sell, or hold any investments or financial instruments, including cryptocurrencies.

Akash Logo

What is the Akash Network?

Akash Network represents the next step in the evolution of cloud computing, establishing itself as one of the leading decentralized compute marketplaces.

The network aims to compete with traditional centralized cloud providers by offering a decentralized cloud computing marketplace where users can securely and efficiently buy and sell computing resources.

By leveraging blockchain technology Akash Network ensures that it is permissionless, meaning that anyone can deploy applications in a secure, censorship-resistant environment.

The Akash Network is powered by a Layer One Protocol built within the Cosmos ecosystem, secured by its native token $AKT.

Akash Network supports the deployment of AI & ML applications making it a player in the AI cryptocurrency narrative alongside projects like Render ($RNDR) network.

As a community-owned and managed platform, Akash maintains a radically open stance by making its source code, a major drawcard for many users of the system.

Akash $AKT Tokenomics

$AKT is the utility token for the Akash Network. It’s used for governance, security, participant incentivization, and of course a value exchange mechanism.

  • Maximum Supply: 388,539,008

  • Circulating Supply: 228.4 Million $AKT (at the time of writing)

  • Block Time: 6 Seconds

  • Emissions (Inflation): 13%

  • Active Validators: 100

  • Consensus Mechanism: Delegated Proof of Stake (DPoS)

AKT 2.0 is an ongoing effort allowing new features and utilities to be applied to the $AKT tokenomics. The flow of tokens through the Akash Network is outlined in the infographic below.

The flowchart outlines the Akash Network cost indicating 2 sources of the $AKT token. One source from users of the network (Tenants), and the other from Inflation (token emissions).

Tenants pay a “Take Rate” to the community pool at a rate of 20%, with the remainder going to the compute provider.

Token Emissions pay a community tax into the community pool, with the remainder going to Stakers and Validators of the network.

The tokens taxed by the community pool are used for growth in health of the ecosystem by means of Developer Funds, Incentives, Bounties, Events and Hackathons, and Security Incentives.

Flowchart Update: As of Proposal #240 which took part in December 2023, Akash Network Inflation moved from 8% to 13%, and the community tax from 25% to 40%. This change passed with a 97.4% yes vote with the objective of scaling the network as popularity increases.

Akash Network Use Cases and Applications

Akash Network empowers developers and businesses through access to affordable and scalable computing power.

This paradigm shift offers a multitude of use cases and applications, especially in fields requiring significant computational resources such as AI and Machine Learning (ML).

AI and Machine Learning

AI and ML are among the sectors that stand to gain immensely from Akash Network’s capabilities.

The network facilitates the training of artificial intelligence models by providing access to vast amounts of computing power at a fraction of the cost of traditional cloud providers.

Distributed Machine Learning

The ability to perform distributed machine learning is a critical requirement for scaling ML workloads.

With its decentralized nature, Akash Network integrates seamlessly with frameworks like Ray, which are designed to parallelize and scale AI and ML workloads.

Ray cluster on Akash Network Diagram
Source: https://akash.network/blog/distributed-machine-learning-on-akash-network-with-ray/

SDXL Inference Application Development

Building inference applications, particularly for state-of-the-art AI diffusion models, demands considerable computational resources.

Akash Network’s supercloud is ideally suited for such tasks, providing the necessary infrastructure to deploy and run inference applications efficiently and cost-effectively.

The network’s ability to handle these demanding tasks opens up new possibilities for developers looking to leverage the latest AI technologies.

Web3 and Decentralized Applications (DApps)

Akash Network’s decentralized cloud infrastructure is perfectly aligned with the ethos of Web3, offering a foundation for hosting DApps that benefit from increased security, resilience, and independence from centralized control.

This alignment with Web3 principles makes Akash an attractive cloud provider for DApps developers.

Akash Network Vs Render Network

Chances are if you’re reading this article, you’ve heard about Render Network.

Akash Network and Render Network are both decentralized cloud computing platforms, but they focus on different aspects of the cloud services market.

Nevertheless, they are often compared as people ask which is the better option for decentralized computing resources.

The TLDR is this;

While both networks aim to decentralize aspects of cloud computing, Akash Network offers a broader range of cloud services, whereas Render Network specializes in graphical rendering.

If you want to learn more, below is an interesting conversation on X with Akash’s founder @boz_menzalji.

The Akash Team

Overclock Labs, creators of the Akash Network comprises a skilled group of diverse individuals giving strength in several key areas:

  • Leadership and Vision: Chanda Dharap holds a PhD in Computer science from Penn State University and joined as the first VP of Engineering.

  • Global Community Engagement: The appointment of Adam Wozney as Akash’s Senior Global Community Manager highlights the team’s commitment to global outreach and fostering a strong community.

  • Financial and Operational Expertise: Steph Bernstein, serving as Finance & Operations Manager, brings financial acumen to the team, ensuring that the project remains commercially viable and efficient.

  • Technical Innovation: Artur Troian is a Senior Software Engineer who brings technical expertise and innovation to the Akash team.

  • Advisory from Open Source Veterans: Having advisors like Brian Fox, the creator of the Bash Shell and a renowned figure in the open-source community, adds an additonal layer of credibility and experience.

  • Diverse Backgrounds: Cheng Wang brings experience from both Wall Street and digital commerce.

The Akash Community

Akash Network has an active community across all the major social platforms including X, Telegram, Discord, and Facebook with regular updates and discussion amongst the team and community members.

Challenges and Risks with the Akash Network

Like all new and innovative blockchain technology projects, Akash Network faces a range of challenges from scalability to competition from established centralized entities. Let’s take a closer look at the of the challenged and risks associated with the Akash Network.

  • Market Competition: Akash Network faces stiff competition from established players such as Google Cloud Platform and Amazon Web Services, which might affect its adoption and market capitalization.

  • Technology Adoption: The decentralized nature of the Akash Network can be a double-edged sword. While it offers many benefits over traditional cloud providers, convincing large enterprises to move away from trusted entities to a blockchain-based solution may be challenging.

  • Regulatory Risks: As with any platform dealing with cryptocurrency and digital assets, Akash Network currently operates in a regulatory gray area. Changes in regulations regarding digital assets can impact its operation and token value.

  • Security Concerns: Despite the inherent security features of blockchain technology, Akash Network, like any other platform, faces risks of security breaches. Ensuring computing capacity is used appropriately and not for malicious purposes remains a challenge.

  • Cryptocurrency Market Volatility: The value of $AKT, like other digital assets, is subject to the high volatility of the cryptocurrency market. This volatility can impact the cost-effectiveness of Akash Network’s computing resources and affect overall participation.

  • Scalability and Performance: As Akash Network grows, maintaining high performance and scalability of computing capacity, especially in comparison to traditional cloud services, will be crucial for user satisfaction and continued adoption.

  • Technical Complexity: The technical barrier for entry might be high for some users, particularly those not familiar with blockchain and cryptocurrency. Simplifying user experience without compromising on the decentralized ethos is critical.

  • Dependency on Cosmos Ecosystem: Being built within the Cosmos ecosystem, Akash Network’s success is partly tied to the health and development of the Cosmos ecosystem itself. Any challenges faced by Cosmos could indirectly affect Akash.

Akash Network Price Prediction

Here are some key metrics for the current price and historical price metrics for Akash Network as of February 2024 (all prices are current at the time of writing in February 2024):

  • Market Cap: $902.6M

  • 24h Trading Volume: $6.56M

  • Current Price $AKT: $3.86

  • Previous All Time High $AKT: $8.07

Akash Price Prediction by Render (RNDR) Market Cap

Akash Render Market Cap price prediction

Assuming the Akash Network’s market cap value can increase to the current market cap of Render Network, the $AKT token would rise to $10.34.

Akash Price Prediction as a Top 10 Project

Akash top 10 price prediction

Assuming the Akash Network’s market cap value can increase to be a top 10 project, the $AKT token would rise to $60.55.

What Can I Buy the Akash $AKT Token?

The Akash Network $AKT token can be purchased through a range of leading cryptocurrency exchanges.

Based on 24h trading volume, the best markets to buy and sell $AKT are KuCoin, Kraken, and HTX.

KuCoin Logo block
Visit KuCoin
Kraken Logo block
Visit Kraken
HTX Logo block
Visit HTX (formerly Huobi)

For self custody of your $AKT tokens there are a range of popular wallets to use:

Final Thoughts

Akash Network emerges as a pivotal player in the evolving narrative of decentralized computing, particularly for AI applications.

With the popularity of AI projects and the formation of a strong AI narrative for the upcoming bull market, Akash is positioned well to capitalize from the popularity.

Always remember investing in ANY cryptocurrency project is a gamble – if you can’t afford to lose it, Don’t Do It!

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