In recent years, the world of cryptocurrency has witnessed the emergence of several blockchain-based projects that aim to revolutionize the storage and exchange of data. Two such projects are Akash and Filecoin. Akash is a decentralized cloud computing marketplace that allows users to rent out computing resources to others in a peer-to-peer network. Filecoin, on the other hand, is a decentralized storage platform that uses blockchain technology to enable users to store and access data in a secure and decentralized manner. In this article, we will compare these two projects on several fronts, including their history, founders, stakeholders, roadmap, tokenomics, use cases, technical analysis, and price prediction.
History
Akash was founded in 2016 by Greg Osuri, a former blockchain engineer at Cisco Systems. The project is based on the Tendermint consensus protocol and runs on the Cosmos network. Filecoin, on the other hand, was founded in 2014 by Juan Benet, a former engineer at Airbnb and Dropbox. The project is based on the InterPlanetary File System (IPFS) and runs on the Ethereum network. Both projects have raised substantial funds through initial coin offerings (ICOs), with Akash raising $22 million in November 2020 and Filecoin raising $257 million in September 2017.
Founders and Stakeholders
As mentioned earlier, Greg Osuri is the founder of Akash, while Juan Benet is the founder of Filecoin. Both projects have a team of experienced developers and advisors. Akash has several prominent investors, including 1confirmation, Binance Labs, and Polychain Capital. Filecoin, on the other hand, has an extensive list of investors, including Sequoia Capital, Union Square Ventures, and Winklevoss Capital. Additionally, Filecoin has received support from several high-profile organizations, including Protocol Labs, the Interchain Foundation, and the Ethereum Foundation.
Roadmap
Akash’s roadmap includes several updates to its platform, including the launch of its Mainnet 2.0 in Q2 2021, which is expected to bring several improvements to the platform’s performance and security. Additionally, the project plans to integrate with other blockchains, including Ethereum and Binance Smart Chain, to expand its user base. Filecoin’s roadmap includes several updates to its protocol, including the launch of its mainnet in Q4 2020 and the integration of additional storage and retrieval features. Additionally, the project plans to expand its ecosystem by supporting other blockchains and launching partnerships with other organizations.
Tokenomics
Filecoin Tokenomics
Filecoin’s tokenomics structure aims to align the value accretion of its participants with the long-term utility of the protocol. The initial distribution of Filecoin’s tokens during network launch is intended to incentivize sustainable value creation. The protocol specification allows for the creation of up to 2 billion FILs, with 70% allocated to reward storage providers, 20% granted to Protocol Labs and the Filecoin Foundation for network development, adoption, and ecosystem growth over six years, and the remaining FILs allocated to SAFT investors over periods ranging from 6 months to 3 years, starting in October 2020.
However, the maximum theoretical amount of FIL that can be minted and awarded may not reflect the actual amount of FIL in the network’s circulating supply due to various factors. For instance, the 300 million FIL held in a mining reserve requires a protocol upgrade to be mined, which is subject to community decision-making. Additionally, the consumption and use of tokens for network growth reduces the available token supply. As of September 2022, approximately 520 million FILs have been minted or awarded, with around 70% in circulation. This is because significant amounts of FIL are burned permanently due to network transaction fees or locked as collateral to secure the network and incentivize reliable storage.
Therefore, understanding the net inflows or outflows that determine the token supply is crucial for token holders to assess the relative purchasing power of tokens. The Filecoin network is expected to mature gradually, resulting in decreasing token emission rates tied to network growth and limited vesting schedules.
Akash Tokenomics
Akash Network is a decentralized cloud computing platform that leverages blockchain technology to provide a more affordable, efficient, and secure way to host and scale decentralized applications. Akash’s native cryptocurrency is AKT, which plays a vital role in the platform’s ecosystem and governance.
The total supply of AKT is 380 million, with a circulating supply of around 70 million AKT as of September 2022. The initial token distribution includes 30% of the total supply (114 million AKT) allocated for the community, 15% (57 million AKT) for the founding team and advisors, 5% (19 million AKT) for early investors, and 50% (190 million AKT) for network incentives.
One unique aspect of Akash’s tokenomics is its staking model, which incentivizes users to hold and stake AKT to participate in network governance and earn rewards. Staking also helps secure the network and contributes to AKT’s value accrual over time.
Akash’s governance model enables AKT holders to vote on proposals, including network upgrades, parameter changes, and funding allocations. AKT holders can also participate in network security by running validator nodes and earn rewards for their contributions.
The platform’s revenue-sharing mechanism also enables network participants to earn AKT for contributing to the platform’s growth, such as hosting and renting out computing resources. Additionally, AKT can be used as a means of payment for using the platform’s services, such as deploying and managing decentralized applications.
Akash’s tokenomics is designed to incentivize participation, contribution, and governance within its ecosystem while providing a more affordable and efficient cloud computing solution for decentralized applications.
Use Cases
Filecoin (FIL) is a Blockchain-based protocol developed by Protocol Labs, which aims to revolutionize the way data storage is done. It provides a decentralized platform for peer-to-peer cloud storage, where users can access and store their digital data securely without relying on centralized cloud storage providers.
Unlike traditional cloud storage systems that are centralized, Filecoin (FIL) incentivizes users to store and retrieve data through a unique proof-of-replication consensus algorithm, which ensures the safe storage of data. This incentive layer is responsible for the distribution of validator rewards, encouraging more users to participate in the network and offer their storage services.
By introducing a decentralized element to cloud storage, Filecoin (FIL) addresses the growing concerns of data safety and provides a more secure alternative to centralized cloud storage. This means that users can store their data without having to rely on big cloud firms like Amazon web services, google cloud, and iCloud, ultimately transitioning the world to a new era of Blockchain-powered cloud computing and storage.
Filecoin (FIL) offers a unique solution to the challenges of cloud storage, providing a secure and decentralized platform that promotes user participation and offers an alternative to traditional centralized cloud storage services. As more users join the Filecoin network and the demand for decentralized storage increases, the potential for the growth and adoption of Filecoin (FIL) becomes even more significant.
Currently, the internet market is largely dominated by three centralized cloud computing providers – Google, Microsoft, and Amazon. However, as centralized entities, these providers are susceptible to a single-point-of-failure and may not always be transparent with the usage and storage of transactional data. Additionally, they have the power to decide which users can access their services.
In contrast, Akash is the first open-source cloud computing provider that leverages the power of blockchain and containerization technology to create a decentralized marketplace for developers. This allows them to deploy their applications with minimal configuration and server management, while also providing them with full flexibility in choosing attributes for their applications.
Moreover, Akash’s decentralized cloud allows for seamless operation of existing containerized and cloud-based applications on centralized networks, with lower costs and faster speeds. This is made possible through the use of advanced cryptographic security, ensuring the portability of applications or containers across any cloud-native application.
Akash’s asset exchange transactions occur off-chain, while deployment files use a private peer-to-peer network that is fully separate from the Akash Network. This adds an extra layer of security to the entire process, making it an even more attractive option for developers looking to deploy their applications in a secure and decentralized environment.
Overall, Akash’s innovative approach to cloud computing presents a compelling alternative to the centralized providers dominating the market. With its unique blend of blockchain technology and containerization, Akash is well-positioned to meet the growing demand for secure and decentralized cloud computing solutions.
Conclusion
Akash and Filecoin are two blockchain-based projects that aim to revolutionize the storage and exchange of data. Akash is a decentralized cloud computing marketplace that allows users to rent out computing resources to others in a peer-to-peer network, while Filecoin is a decentralized storage platform that uses blockchain technology to enable users to store and access data in a secure and decentralized manner.
Both projects have experienced founders and teams, with Akash being founded by Greg Osuri and Filecoin being founded by Juan Benet. They have also raised substantial funds through ICOs and have prominent investors and stakeholders.
Akash’s roadmap includes several updates to its platform, including the launch of its Mainnet 2.0 in Q2 2021, while Filecoin’s roadmap includes several updates to its protocol, including the launch of its mainnet in Q4 2020 and the integration of additional storage and retrieval features.
In terms of tokenomics, Filecoin’s structure aims to align the value accretion of its participants with the long-term utility of the protocol, while Akash’s tokenomics is designed to incentivize participation, contribution, and governance within its ecosystem.
Both projects have several use cases, including providing affordable and efficient cloud computing and storage solutions for decentralized applications. However, Akash’s focus on cloud computing and Filecoin’s focus on storage are the primary distinguishing factors between the two projects.