AI is driving a 1220% surge in demand for computer power. How blockchain firms are riding the wave – DL News

AI is driving a 1220% surge in demand for computer power. How blockchain firms are riding the wave – DL News

Table of Contents

  • The decentralized account providers benefit from the mutation of artificial intelligence.
  • The report predicts investing in and approved decentralized account providers on other sectors.
  • But there are concerns about whether such projects can fit their economic incentives.

Amid the madness of the market for all artificial intelligence things, some look forward to taking advantage of Blockchains for wave ride.

One of the last trends is a decentralized emerging coding sector – short for the term decentralized physical infrastructure networks.

DePin projects, especially those that are determined by decentralized computing energy, are usually published on high -speed Blockchains and low -cost Blockchains including Solana and Cosmos.

Tell Kellen Blumberg, the data scientist at Crypto Data Platform Flipside, DL news DePin projects can provide faster, cheaper and safer services compared to central service providers.

The demand for computing power grows. Experts say The mathematical power required to maintain the rise of artificial intelligence every 100 days. This is about 1220 % a year – a possible chance.

Flipside A published a report This expects that investing in and accrediting decentralized account providers will exceed other DePin sectors.

Meet the request of artificial intelligence

DePin projects aim to reduce the costs of everything from mobile phone services to obtain computing energy needed to train artificial intelligence.

They do this by taking advantage of a central network of participants, instead of individual central service providers such as Amazon Web Services or Google Cloud.

The decentralized account providers employ individuals with inactive computers, such as graphics processing units – or graphics processing units.

Then the service providers combine graphics processing units in their network in a group of computing energy and renting it. Those on the other end use graphics processing units to train artificial intelligence, Conduct scientific researchOr other tasks that require large amounts of treatment force.

RENER, a Solana -based La Amraki account, is the highest value, with a market value of more than $ 3.8 billion.

According to the Flipside report, Render has collected a bonus network for about 33,000 hours using high -end graphics processing units since its launch in 2017.

Other projects, such as Cosmos headquarters, claim To undermine prices at central power providers such as Amazon Web Services and Google Cloud by up to 70 %.

RENER and Akash released the symbols, which have risen in recent months. RNDR’s RNDR has gathered 127 % since the beginning of the year, while AKT’s AKT increased by 113 %.

DePin symbols

There are cautious reasons, according to Newhaus, DEFI analyst at Cumberland Labs.

Newhaus told DL news.

Most of the icons issued by decentralized account providers act as a currency of the ecosystem, where those who rent computing power can push the original symbols of the project, while those who loan computing power are also pushed into the network in the distinctive symbol.

At the same time, merchants use the distinctive symbols to predict the adoption of a specific protocol.

Nihaus asked why such projects needed a symbol in the first place.

“If the payment is in an original symbol, what does it seem to offer and ask for the energy that we rent?” He said. “Why do they not pay US dollars or through stables?”

Bloomberg said that some DePin projects use local symbols as an incentive to get more computing power on its networks. “Incentives are useful to attract the first users, but sustainability is very important.”

The situation is similar to the case of RedProPs Crypto, where Defi projects are equivalent to the first users with the newly created distinctive symbols to attract users and deposits. But in recent months, many projects that run this play book fluctuation.

The value of many newly launched codes decreased in a step with the user’s activity after the Airdrop incentive disappears.

DePin projects may also be vulnerable.

Bloomberg said: “Avoid projects that depend only on high rewards and/or symbolic trading activity without showing real benefit or related adoption for their declared purpose,” Bloomberg said.

Tim Craig is a Defi correspondent at DL News. Do you have advice? Send it by email in [email protected].

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