What is DePIN?
DePIN (Decentralized Physical Infrastructure Network) is the next step in the evolution of cryptography-based networks and is a decentralized protocol1.
The DePIN Network utilizes cryptoeconomic protocols to deploy real-world physical infrastructure and hardware networks, also known as Proof of Physical Work (PoPW), Token Incentivized Physical Infrastructure Network (TIPIN), and EdgeFi Network. This bottom-up approach is more equitable and efficient than the traditional top-down deployment model of centralized entities.
1. Decentralized Storage: The current cloud storage market has a market size of US$80 billion and continues to grow at an annual growth rate of 25%. Although the cost of decentralized storage services is 70% lower than that of cloud service providers such as Amazon S3, the current market share of decentralized storage is still less than 1%, and there is still a huge market opportunity for decentralized storage.
2. Decentralized Databases: Decentralized databases have been plagued by performance and latency, and these problems are expected to be solved in 2024. The emergence of DeSoc, games, dynamic NFT, ML, AI and other applications will greatly increase the demand for decentralized databases.
3. Decentralized Wireless Network: DePIN projects represented by Helium Mobile have gradually found their own PMF, causing user adoption to continue to grow. Take Helium Mobile as an example. In the early days, it attracted users by providing low-price services and tokens. The growth of users will further drive the growth of token prices, thereby attracting more users and paying, turning the growth flywheel.
4. Decentralized AI Machine: The development of artificial intelligence currently faces limitations of computing bottlenecks and lack of collaboration. The DePIN project, which focuses on the field of AI, can solve these two problems well. Gensyn can provide sufficient decentralized computing power support for AI model training, and Bittensor can enable individuals to participate in open source AI model training. DePIN and AI have a natural combination scenario.
