Author: Techub News-Carl
Editor: Techub News-Junge
Source: DePIN is the biggest narrative of Hong Kong Web3
At the recent Hong Kong Fintech Week, DePIN became the focus of the Web3 industry. Industry insiders can’t help but lament that everyone is talking about DePIN, which has become the biggest narrative of Hong Kong Web3, rather than the expected RWA.
1. Hong Kong is particularly excited about DePIN
On November 2, at the 8th Hong Kong FinTech Week, the DePIN project Arkreen was shared at the main venue as one of the recommended projects by Invest Hong Kong.
Arkreen is a Web3-based renewable energy data infrastructure network designed to leverage energy data for carbon-neutral applications. As a DePIN project, Arkreen is forming a supply-side and demand-side ecosystem.
In the sharing, Arkreen founder Leo Lin introduced Arkreen’s cooperation with Hashkey and their mission to jointly lead the development of Hong Kong’s DePIN ecosystem – Hong Kong will become a key global center for the DePIN innovation ecosystem.
Leo Lin said that Arkreen aims to connect millions of renewable energy resources around the world in the next few years. “We believe that DePIN, combined with digital solutions and Web3 technology, will build a trusted digital asset network from the real world and will also The real world creates more value.”
Dr. Xiao Feng, founder of HashKey Group, said in his sharing that day that Arkreen allows the power generation of each photovoltaic panel to be uploaded to the chain in real time, making the data credible. Through Arkreen, whether it is rooftop power generation or large-scale photovoltaic power stations, there will be additional income. Now, Arkreen's project is very mature and has been successfully integrated with entities.
Regarding the Hong Kong government’s attitude towards DePIN, Xiao Feng revealed on social media: “The Hong Kong SAR government officials and officials are very fond of and excited about DePIN, so they specially arranged for me to talk to the Deputy Director of the Treasury Bureau of Hong Kong about Green Tech and DePIN.”
On November 2, at the main venue of Hong Kong Fintech Week, Xiao Feng and Chen Haolian, deputy director of the Hong Kong Treasury Bureau, shared the theme on the same stage - "Using digital assets and Web3 to provide power for the broader real economy."
Chen Haolian said in his sharing that Hong Kong has developed into Asia's leading green financial center. Web3 can solve many problems in financial transactions, business operations and our lives, reduce costs and improve efficiency. Hong Kong should seize the opportunity and embrace the benefits and opportunities brought by web3.
2. DePIN is better than traditional RWA
DePIN, or Decentralized Physical Infrastructure Networks, is a new concept first proposed by Messari at the end of 2022. Messari believes that DePIN is "one of the most important areas for crypto investment in the next ten years."
DePIN is not a new thing. Some people in the industry even describe DePIN as "old wine in a new bottle." For example, Bitcoin mining, Ethereum before switching to POS, Filecoin, decentralized network Helium, etc. are all DePIN that have already existed. project.
However, the introduction of the DePIN concept also includes more connotations, such as covering storage space, communication traffic, cloud computing, energy and other broader fields. The introduction of the DePIN concept also means that it has entered the Web3 as a new category. historical stage.
According to the Messari Research Institute report, the current top-ranking DePIN projects include server networks Filecoin, Arweave, Sia and Storj, wireless networks Helium and PollenMobile, sensor networks Hivemapper and DIMO, energy networks React Protocol and Arkreen, etc.
CoinGecko data shows that the market value of the DePIN field has reached US$5.2 billion, and is showing a continuing upward trend.
Compared with the traditional Internet of Things, infrastructure construction, etc., DePIN has great advantages.
Peng Zhao, founder of the Intelligent Infrastructure IoT Think Tank, said that traditional physical infrastructure projects require high investment, deployment and management have always been dominated by large companies, lack competition and innovation, and the consumer experience is often unsatisfactory. DePIN is a decentralized network that is bottom-up. It will not only reduce costs and improve efficiency, but also increase fairness and sharing, forming an open, competitive and innovative environment.
DePIN is also a category of RWA (Real World Assets), but its value may be greater than traditional RWA.
Arkreen founder Leo told Techub News that traditional RWA, such as tokenizing real estate, bonds, and stocks, has limited value growth. DePIN is an infrastructure with network effects and a platform with network effects. It has a lot of room for imagination and market expectations will be very high.
Another industry insider said that as a core component of RWA, DePIN has far greater advantages than traditional RWA. Traditional RWAs are basically STOs and are greatly affected by compliance, while compliance with DePIN is much easier.
3. "Front shop and back factory" help
Since this year, Hong Kong has made many progress in DePIN.
In April 2023, Hashkey and Arkreen launched the Web3 DePIN Hong Kong initiative at the Hong Kong Web3 Carnival, aiming to cooperate with DePIN ecological projects, builders, investment research institutions and equipment manufacturers to jointly promote the development of Hong Kong’s DePIN ecosystem and transform Hong Kong into Build into the center of the global DePIN ecosystem.
On November 1, the opening ceremony of the second phase of the Future3 Campus incubation camp - DePIN track was held in Cyberport. The DePIN acceleration camp was officially launched in Cyberport, and 20 DePIN entrepreneurial projects were officially settled in Cyberport.
Ren Jingxin, CEO of Hong Kong Cyberport, said at the event that the three major directions such as DePIN that Future3 Campus focuses on are also development directions that Cyberport strongly supports. Cyberport will actively participate in cooperation and jointly use technology to promote economic development.
According to reports, HashKey is currently discussing the design of a DePIN-oriented application chain with the Hong Kong Cyberport, and plans to put all DePIN applications together.
At Fintech Week, it has become an industry consensus that Hong Kong continues to embrace Web3, and the negative impact caused by the previously worrying JPEX case is gradually receding.
Secretary of the Hong Kong Treasury Bureau Hui Ching-yu made it clear: "We have been asked many times whether the exchange JPEX will affect our determination to develop the Web3 market, and the answer is obviously 'no'."
Xiao Feng is full of confidence in the development of DePIN in Hong Kong. He said: "Whether it is green technology or DePin, we have great confidence to do a very good thing in Hong Kong."
In the context of Hong Kong's vigorous promotion of the development of the Web3 ecosystem, Hong Kong's special legal system is very beneficial to entrepreneurs.
Xiao Feng said that he has spent most of the past year in Hong Kong and has a deep understanding of the subtleties of Hong Kong's common law under one country, two systems. There are three levels of common law. You can do it if it is not prohibited by law, and you cannot do it if it is not authorized by law. If there is sufficient reason for doing something that is not stipulated by law, it can be accepted. If you make a mistake even though you try your best to do your job out of sincerity and goodwill, It can be forgiven.
Xiao Feng added during the social interaction: "In the past year, I have seen the Hong Kong SAR government lose two lawsuits. The Hong Kong SAR government may be the only one that has a special fund to support ordinary people in filing lawsuits against the government. "
Industry analysts said that another advantage of DePIN in Hong Kong is that it is backed by the Guangdong-Hong Kong-Macao Greater Bay Area. As an important member of the Guangdong-Hong Kong-Macao Greater Bay Area, Hong Kong can take advantage of Hong Kong’s capital and compliance advantages on the one hand, and on the other hand, it can Relying on the technology and equipment manufacturing advantages of Shenzhen and other places, front stores and back factories can help Hong Kong DePIN develop rapidly.
On October 25, Hong Kong Chief Executive Lee Ka-chiu issued his second policy address during his tenure, in which he mentioned the Guangdong-Hong Kong-Macao Greater Bay Area 32 times, showing a positive attitude towards actively integrating into the Greater Bay Area and promoting cooperation between Hong Kong and Shenzhen.
"In the 1980s, Hong Kong was the front shop and back factory of the commodity economy and the re-export trade of physical goods. Now, Hong Kong can become the 'front shop and back factory' of the digital economy and the 're-export trade' of digital goods." Xiao Feng said ,