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Glossary

Akash Network

Akash Network is a decentralized, open-source cloud computing marketplace built on the Cosmos SDK, enabling users to buy and sell compute resources in an open, permissionless market.
Chainscore © 2026
definition
DECENTRALIZED CLOUD COMPUTING

What is Akash Network?

Akash Network is a decentralized, open-source cloud computing marketplace that enables users to buy and sell compute resources in a permissionless, peer-to-peer fashion.

The Akash Network is a decentralized cloud computing marketplace built as a sovereign Proof-of-Stake (PoS) blockchain using the Cosmos SDK. It functions as a reverse auction marketplace where users who need compute resources (tenants) can place bids, and providers with underutilized capacity (like data centers or individual servers) can compete to fulfill them at the lowest price. This model is designed to create a more efficient and cost-competitive market compared to traditional centralized cloud providers like AWS, Google Cloud, and Microsoft Azure.

At its core, Akash leverages containerization technology, specifically Docker, and a Kubernetes-based orchestration layer. Developers deploy their applications using a standard Stack Definition Language (SDL) file, which specifies the required resources (CPU, memory, storage) and deployment parameters. The network's decentralized nature means no single entity controls the infrastructure, enhancing censorship resistance and reducing the risk of vendor lock-in. Its native utility and staking token, AKT, is used for payments, securing the network through staking, and governing the protocol.

A key differentiator is Akash's focus on commodity hardware and permissionless access. Anyone with a standard x86 server can become a provider and offer resources to the network, lowering barriers to entry and increasing the potential supply of compute. The platform is optimized for a range of workloads, including web hosting, databases, machine learning training, blockchain nodes, and GameFi servers. Its architecture is often described as Supercloud or Cloud 3.0, representing a decentralized aggregation layer over existing cloud and hardware infrastructure.

The network's security and settlement layer is provided by its own blockchain, while the actual compute orchestration is managed by the Akash Provider Service. This separation ensures that market operations and payments are trustless and verifiable on-chain. Akash also integrates with the broader Inter-Blockchain Communication (IBC) protocol, allowing seamless interaction with other Cosmos-based chains and enabling use cases like deploying cross-chain smart contract oracles or interchain service backends.

For developers, deploying on Akash involves defining their app in an SDL file, funding a deployment with AKT or other IBC-compatible tokens via Interchain Accounts, and submitting it to the marketplace. The auction mechanism typically secures prices significantly below those of traditional cloud vendors. Major use cases demonstrated on the network include hosting decentralized front-ends (dApps), running validator nodes for various blockchains, performing batch data processing, and operating privacy-focused applications where centralized cloud control is a concern.

how-it-works
ARCHITECTURE

How Akash Network Works

Akash Network is a decentralized cloud computing marketplace that operates as a permissionless, open-source protocol, connecting users with spare compute capacity to those who need it.

The Akash Network operates on a reverse auction model where providers of compute resources bid to host containerized workloads. A user submits a deployment manifest, which is a YAML file defining their application's requirements (CPU, memory, storage). Providers then compete to offer the lowest price to fulfill this request, with the system automatically selecting the winning bid. This creates a highly competitive market that drives prices significantly below those of traditional centralized cloud providers like AWS, Google Cloud, and Microsoft Azure.

At its core, the network leverages the Akash Blockchain, built with the Cosmos SDK, to manage the marketplace's economics and security. The native AKT token is used for payments, staking, and governance. Tendermint consensus ensures the state of deployments and leases is immutable and verifiable. Smart contracts, in the form of CosmWasm modules, automate the entire lease lifecycle—from bid matching and escrow to settlement and dispute resolution—without requiring intermediaries.

Application deployment is standardized using containerization. Users deploy workloads packaged as Docker containers or Kubernetes manifests, ensuring portability and a familiar developer experience. The network's Supercloud layer abstracts the underlying infrastructure, allowing an application to run seamlessly across any winning provider's hardware. This is enabled by the Akash Provider Service, which runs on the host's servers and interfaces with the blockchain to manage the deployment, provisioning, and lifecycle of the containers.

Security and reliability are enforced through cryptographic proofs and economic incentives. Providers must bond AKT tokens as stake, which can be slashed for malicious behavior or downtime. A decentralized proof-of-attendance system requires providers to submit regular, verifiable proofs that the leased containers are running correctly. For users, funds are held in escrow and released incrementally, while the deployment manifest and its state are stored on-chain, providing a transparent and auditable record of the entire lease agreement.

key-features
ARCHITECTURE & MECHANICS

Key Features of Akash Network

Akash Network is a decentralized cloud computing marketplace that leverages a reverse auction model and containerization to provide scalable, cost-effective compute resources.

02

Reverse Auction Model

The core pricing mechanism where Providers compete to win workloads by offering the lowest price. A Tenant defines their requirements in a SDL (Stack Definition Language) manifest, and the network's auction engine automatically selects the lowest bid from capable Providers.

03

Container-Native & Kubernetes

Akash is built for containerized applications using Docker and is compatible with Kubernetes. This allows developers to deploy any cloud-native application that can run in a container, ensuring portability and a familiar DevOps experience.

04

Persistent Storage

Provides stateful storage solutions for applications that require data persistence, such as databases. This is achieved through integrations with decentralized storage networks and provider-hosted volumes, moving beyond purely ephemeral compute.

05

AKT Token Utility

The native $AKT token secures the Proof-of-Stake blockchain and serves as the primary means of settlement and governance.

  • Settlement: Tenants pay providers in AKT.
  • Security: Validators stake AKT.
  • Governance: Token holders vote on protocol upgrades.
06

Supercloud Infrastructure

Akash aggregates compute from diverse sources—including data centers, edge providers, and spare capacity from centralized clouds—into a unified Supercloud. This creates a resilient, globally distributed supply that can scale on demand.

ecosystem-usage
AKASH NETWORK

Ecosystem & Use Cases

Akash Network is a decentralized, open-source cloud computing marketplace that leverages a permissionless, sovereign Layer 1 blockchain to connect users with underutilized compute capacity from data centers globally.

03

Akash's Blockchain Stack

The network is built on Cosmos SDK and uses Tendermint consensus. Its native utility and governance token, AKT, is used for:

  • Payments: Settling compute leases.
  • Governance: Voting on protocol upgrades.
  • Security: Staking to secure the Proof-of-Stake network.
  • Incentives: Rewarding providers and validators.
04

Persistent Storage & Akashian Challenge

Beyond ephemeral compute, Akash offers Persistent Storage, allowing stateful applications like databases to run decentralized. The ecosystem is grown through initiatives like the Akashian Challenge, a incentivized testnet program that onboards developers and tests new features like Inter-Blockchain Communication (IBC) integrations and provider enhancements.

05

Use Cases & Deployments

Real-world deployments on Akash include:

  • Web Hosting & APIs: Decentralized frontends and backends.
  • Game Servers: MMO and blockchain game backends.
  • Blockchain Nodes: RPC nodes, validators, and indexers for networks like Ethereum and Cosmos.
  • Scientific Computing: Rendering and research workloads.
  • DePIN (Decentralized Physical Infrastructure): A core provider of compute for decentralized physical infrastructure networks.
06

Provider Economics & AKT Tokenomics

The economic model incentivizes a robust provider ecosystem. Providers earn AKT for leasing their compute resources. Tokenomics include:

  • Take Rate: A network fee (currently directed to community pool).
  • Inflation: Rewards for staking, securing the chain.
  • Burn Mechanism: A portion of lease payments can be burned, creating deflationary pressure. The goal is to align the token's value with the growth of the compute marketplace.
akt-token-mechanics
AKASH NETWORK

AKT Token & Economics

An overview of the AKT token, the native utility and governance asset of the Akash Network, detailing its core functions, economic model, and role in the decentralized cloud marketplace.

The AKT token is the native cryptocurrency of the Akash Network, a decentralized cloud computing marketplace, serving as the primary medium for payments, securing the blockchain via Proof-of-Stake (PoS) consensus, and enabling on-chain governance. As a utility token, AKT is used by tenants to pay for compute resources and by providers as collateral and for staking. Its economic model is designed to align incentives across all network participants—users, providers, and delegators—ensuring the security and sustainable growth of the Akash Supercloud.

Within the marketplace mechanics, AKT facilitates a reverse auction model where providers bid to supply compute resources, with settlements and payments denominated in AKT. The token also underpins the network's security; providers must bond AKT as collateral to offer their resources, which can be slashed for malicious behavior. Furthermore, token holders can delegate their AKT to validators to earn staking rewards, participating in securing the chain and sharing in the network's transaction fees and inflationary rewards.

AKT's governance function allows holders to vote on Akash Improvement Proposals (AIPs), directing the protocol's development, treasury spending, and parameter changes. The tokenomics include a controlled, decaying inflation rate that funds staking rewards and the Community Pool, a treasury governed by token holders for ecosystem grants and development. This model aims to reduce sell pressure over time while incentivizing long-term participation and network security.

COMPARISON

Akash vs. Traditional Cloud

A feature and economic comparison between decentralized cloud compute and traditional centralized providers.

Feature / MetricAkash NetworkTraditional Cloud (e.g., AWS, GCP, Azure)

Market Model

Decentralized, permissionless auction

Centralized, fixed-price catalog

Pricing

Reverse auction (supply-driven)

Fixed, often with complex tiered pricing

Underlying Infrastructure

Aggregated, permissionless global supply

Owned and operated by the provider

Vendor Lock-in

Payment Method

AKT, USDC, other cryptocurrencies

Fiat currency, credit cards

Deployment Time

< 5 minutes for standard workloads

Varies, often longer with account setup

Typical Cost Savings

Up to 85% vs. comparable specs

Benchmark (0% savings)

Geographic Censorship Resistance

technical-architecture
AKASH NETWORK

Technical Architecture

Akash Network is a decentralized, open-source cloud computing marketplace built on Cosmos, enabling users to buy and sell compute resources in a permissionless, competitive market.

01

Supercloud Architecture

Akash's Supercloud model aggregates underutilized compute capacity from global data centers into a single, unified marketplace. This architecture enables:

  • Multi-cloud deployment across any provider on the network.
  • Provider-agnostic workloads that can run on any compatible hardware.
  • Fault tolerance by distributing applications across multiple, independent providers.

The platform acts as an abstraction layer, presenting a heterogeneous pool of resources as a single, programmable cloud.

02

Reverse Auction Marketplace

The core economic mechanism is a reverse auction where tenants (users needing compute) set a price, and providers bid to offer their resources at lower prices. Key features:

  • Tenant-defined price: Users specify the maximum price they are willing to pay for a deployment.
  • Competitive bidding: Providers compete by submitting lower bids to win the lease.
  • Automated settlement: The winning provider's bid price becomes the lease price, paid in AKT tokens. This model creates a transparent, efficient market that drives down cloud computing costs.
03

Akash Manifest & SDL

Workloads are defined using an Akash Manifest written in Stack Definition Language (SDL), a declarative YAML-based configuration. The SDL specifies:

  • Service definitions (e.g., a web frontend, a database).
  • Compute resources required (CPU, memory, storage).
  • Placement constraints for provider attributes.
  • Exposed endpoints and network configuration. The SDL enables portable, reproducible deployments. A deployment is a live instance of a workload defined by a manifest, managed through the Akash CLI or console.
04

Cosmos SDK & Tendermint Core

Akash is built as an application-specific blockchain using the Cosmos SDK and secured by Tendermint Core BFT consensus. This foundation provides:

  • Sovereign blockchain: Akash controls its own governance, staking, and fee market.
  • High performance: Tendermint offers fast finality (~6 second block times).
  • Interoperability: Native Inter-Blockchain Communication (IBC) protocol connectivity to the Cosmos ecosystem and beyond.
  • Staking & Security: The native AKT token is used for staking, governance, and securing the network through a delegated Proof-of-Stake (dPoS) model.
05

Provider Stack & Akash Node

Providers run the Akash Provider Service, a software stack that interfaces with their physical or virtual infrastructure. Key components include:

  • Akash Node: Connects the provider to the Akash blockchain to listen for bids and manage leases.
  • Provider Service: Manages the lifecycle of deployments, including container orchestration (via Kubernetes or Docker Compose).
  • Inventory & Bidding Engine: Advertises available resources and automatically places bids in the marketplace. Providers must bond AKT as collateral to signal commitment and reliability.
06

Container Runtime & Kubernetes

Akash is a container-native platform. It uses industry-standard container runtimes and orchestration:

  • Docker & CRI-O: Supported container runtimes for executing workloads.
  • Kubernetes Integration: The primary orchestration layer for most providers, managing pod scheduling, networking, and service discovery.
  • Persistent Storage: Supports Persistent Volumes (PVs) for stateful applications, with storage classes defined in the SDL. This compatibility allows developers to deploy any cloud-native application built with standard container tooling without modification.
AKASH NETWORK

Frequently Asked Questions

Essential questions and answers about the decentralized cloud computing marketplace, its core technology, and its use cases.

Akash Network is a decentralized, open-source cloud computing marketplace that connects users with underutilized computing resources from data centers and individual providers. It operates as a reverse auction marketplace where users submit their compute requirements (CPU, RAM, storage) and providers bid to fulfill them, with the lowest bid winning. The platform leverages a Proof-of-Stake (PoS) blockchain, built with the Cosmos SDK, to manage deployments, payments, and settlements in its native token, AKT. Resources are containerized using Docker and orchestrated via Kubernetes, allowing developers to deploy applications in a cloud-agnostic environment with significant cost savings compared to traditional centralized providers like AWS, Google Cloud, and Microsoft Azure.

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Akash Network: Decentralized Cloud Compute Marketplace | ChainScore Glossary