The builders of the Akash Network (AKT) think they can make money through cloud computing.
They intend Akash to be an open-source Super Cloud that lets users buy and sell computing resources securely and efficiently. Hence, Akash is trying to use Amazon Web Services’ (AWS) business model.
To explain, AWS is a “Super Cloud” that makes money by offering global cloud based services to customers. For example, database, storage, computing, analytics, machine learning, security, identity, and regulatory compliance.
Opportunity abounds in the Cloud
AWS is a lucrative business that is growing fast. It generated $80.096 billion in revenues in 2022, Statista estimates. AWS’s revenues rose from $3.108 billion in 2013 to $45.370 billion in 2020 to $62.202 billion in 2021 to $80.096 billion in 2022.
Opportunity abounds in the cloud. For the global computing market could grow from $58 billion in 2023 to $1.24 trillion in 2028, Reportlinker projects. Hence, Akash is operating in a growing market.
They claim Akash (AKT) can reduce cloud costs by 85% by creating a “Super Cloud.” A Super cloud is a cloud architecture that allows users to offer computing services all over the world through the internet. Hence, AWS is a super cloud.
For example, applications such as Google, YouTube, Netflix (NFLX), PayPal (PYPL), and Apple Pay need a super cloud to operate on. Super clouds make streaming video, instant payment, online retail, and fast searches by offering vast amounts of computing power to customers.
Big Data operates on the cloud. Moreover, new technologies such as artificial intelligence (AI) and machine learning need the cloud to operate.
How the Akash Network Works
They designed the Akash Network (AKT) with an infrastructure-as-code philosophy. Hence, they built the code into the blockchain as they built the Akash Network.
For example, they built Akash’s orchestration layer as a shared data layer (SDL). An SDL is a separate layer of data that serves as a database. Hence, they built Akash’s network as a database.
Moreover, Akash runs on the Kubernetes container application system. They claim Akash this architecture allows Akash to offer a limitless storage system. This means they can store enormous amounts of data and serve Big Data, which relies on enormous datasets.
They built Akash as a Layer-one Protocol using the Cosmos Software Development Kit (SKD). Cosmos uses Proof-of-Stake to secure a network of decentralized validators. Theoretically, this means you validate Akash without permission, which keeps transactions anonymous.
They claim Akash was the first blockchain to make an Interblockahain Communication (IBC) transaction on the Cosmos Hub. Hence, Akash could support transactions between blockchains. For example, Bitcoin (BTC) transactions on Ethereum (ETH).
Akash will make money by renting dedicated IP addresses to applications. Hence, they claim web servers can use Akash.
Is the Akash Network (AKT) Legal?
They claim the Akash Network can let users deploy applications without outside help. Moreover, they claim Akash can deploy applications anonymously.
Hence, I think Akash will violate Know Your Customer (KYC) and Anti-Money-Laundering (AML) laws. Know Your Customer or Know Your Client (KYC) laws require financial institutions and payments networks to verify the identities of all customers and client.
For example, a bank has to identify all depositors and account holders. Thus, I think financial services operation on Akash could violate KYC regulations in many countries, including the United States and the European Union.
Moreover, the Bank Secrecy Act requires US financial institutions to follow AML rules. Anti-Money Laundering regulations require financial institutions and payments providers to identify the source of all money they move. They design AML to keep criminals from laundering crime profits into clean money.
Violating AML and KYC can be expensive. Governments levied $26 billion in fines on AML and KYC violated between 2008 and 2018, Thales estimates.*
This could limit Akash’s use because the service they describe violates AML and KYC regulations.
The Akash Ecosystem
Many decentralized applications (DApps) operate on the Akash ecosystem. Hence, people are using Akash run applications. Many of those applications allow users to build DApps and infrastructure on the Akash Network.
For example, they claim Praetor allows users to become Akash providers fast. Blockless lets users build smart contracts that can execute transactions off the chain. Anonstake is a staking provider based in the European Union (EU).
The Rango Exchange is a Multichain Decentralized Exchange (DEX) and Bridge Aggretator. That means Rango’s Dex operates on different blockchains. The Evia Network builds decentralized finance (DeFi) products in the Cosmos Ecosystem. Spark IBC offers rewards for decentralization in Cosmos. The China Network is a blockchain and smart transaction platform hat supports cryptocurrency mining.
The Osmosis DEX is an interchain liquidity lab. Cloudmos offers blockchain analysis, deployment tools, and validation on the Akash Network. REStake claims to allow validators to auto-compound staking rewards. OmniFlix is a peer-to-peer (P2P) network for NFT creators and communities.
Mantra claims to be a vertically-integrated and regulatory compliant blockchain network. Space is an interchain app for stablecoin swaps. Speron is a deployment app for web apps. The Swift Protocol claims to be a worldwide decentralized commerce platform for buyers and sellers.
Presearch claims to be a decentralized search engine that performs over 150 million searches each month. Smart Stake is a Proof-of-Stake (PoS) provider and validator.
What Value can Akash Network (AKT) offer?
Mr. Market has some interest in Akash. For example, the Akash Network (AKT) was CoinMarketcap’s 14th most trending cryptocurrency on 10 August 2023.
Conversely, CoinMarketCap named the Akash Network the 188th most trending cryptocurrency, with a 94.34₵ Coin Price on 10 August 2023. CoinMarketCap gave AKT a $107.415 million Market Capitalization, a $366.539 million Fully Diluted Market Cap, and a 24-Hour Market Volume of $7.205 million on 10 August 2023.
They base those numbers on a Circulating Supply of 113.861 million AKT, a Total Supply of 162.864 million AKT, and a Maximum Supply of 388.539 million AKT.
A think Akash is an interesting protocol with a business plan that could make money. Notably, there is an enormous market for the product it plans to sell cloud computing. AWS proves this is a lucrative market. However, there is no evidence, Akash can make money in the cloud.
I consider Akash a cryptocurrency to watch because of the cloud market’s size. Akash’s super cloud could make money.
*https://akash.network/
*https://www.statista.com/statistics/233725/development-of-amazon-web-services-revenue/
*https://uk.finance.yahoo.com/news/cloud-computing-market-size-share-151000390.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAH3vC-KPR9Mq0QhNdeVmfBwwOh9m3w8dorkHsPCOcunReLwwmh1k8Otcnz6Fc5k3RvN3pLAc9sGga0M6PkYk2fNMC69qaXZs9cNBPD9-l_f7Tmoi7hNl3ciKcaNdNtM9_esq9rBRZLdRKppOh1XFb6ybAgd0VHqgi5wlt0CBmEmx
*http://supercloud.cs.cornell.edu/
*https://www.finra.org/rules-guidance/key-topics/aml#:~:text=Firms%20must%20comply%20with%20the,securities%20fraud%20and%20market%20manipulation.
*https://ecosystem.akash.network/
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