The convergence of blockchain and Artificial Intelligence (AI) It could spur accelerated growth of the decentralized physical infrastructure network (DePIN) market, which the World Economic Forum (WEF) expects to exceed $3.5 trillion by 2028.
This transformative market, currently worth between $30 billion and $50 billion, is just that It is expected to grow More than 60 times in the next few years as blockchain and artificial intelligence technologies reshape how decentralized networks operate.
DePIN is an emerging sector that blends blockchain technology with community-owned physical infrastructure to create decentralized networks where individuals or organizations can contribute resources in exchange for cryptocurrencies. As blockchain technology enables secure and transparent transactions and artificial intelligence improves machine learning and data-driven processes, the DePIN model holds the potential to revolutionize infrastructure industries ranging from telecommunications to energy production.
According to a World Economic Forum report, one of the most important catalysts for DePIN’s growth is the emergence of decentralized physical artificial intelligence (DePAI), a concept that integrates decentralized networks with artificial intelligence systems to interact with physical infrastructure in ways that traditional centralized systems cannot.
This “fundamental shift” in the relationship between AI and physical infrastructure is expected to accelerate the adoption of DePIN technology by enabling AI agents to interact with decentralized networks, collect external data, and use machine learning (ML) models in a distributed manner, far removed from traditional centralized data storage.
In contrast to centralized AI systems, where data and algorithms are controlled by a few entities, DePAI enables users to contribute data through their daily activities, thus promoting the development of machine learning without the limitations imposed by centralized data sources. Not only can this decentralized model lead to a more equitable distribution of resources, but it can also make AI development more open, scalable, and transparent.
As AI becomes more decentralized, it will increasingly rely on physical infrastructure to process and store the data needed to support machine learning models. This shift from centralized computing systems to more distributed networks represents a tremendous growth opportunity for DePIN, especially as the need for decentralized wireless hardware solutions grows.
A $3.5 trillion opportunity
The World Economic Forum report predicts that the DePIN market size will rise to $3.5 trillion by 2028, reflecting the huge potential of combining blockchain and artificial intelligence. This growth trajectory will represent a huge leap from the current market size of around $30 billion to $50 billion, with more than 1,500 active DePIN projects worldwide. As more companies and developers embrace blockchain technology to decentralize critical infrastructure, the market could expand significantly, attracting new participants, investors, and developers into the ecosystem.
Carlos Lee Santos, CEO and co-founder of Uplink, a company operating in the DePIN sector, believes that the emergence of decentralized wireless device connectivity will play a major role in the development of this industry. In an interview with Cointelegraph, Santos emphasized that DePIN has the potential to produce the next trillion-dollar company, driven by growing demand for decentralized wireless solutions.
This sentiment reflects the growing recognition of the need for distributed and flexible computing environments, where computing power is not concentrated in a few central data centers, but is instead spread across decentralized networks of physical infrastructure. As DePIN technologies continue to mature, they may fundamentally change the structure of the global computing landscape, leading to a more open, powerful, and accessible digital economy.
Real world applications and growing interest
The World Economic Forum report highlights how decentralized applications (dApps) such as Bittensor and Threefold are already showing DePIN’s growth potential. These applications have demonstrated how decentralized infrastructure can be used to create more interoperable systems for both AI and blockchain networks.
Bittensor is a decentralized platform designed to enable the development of decentralized AI models. By decentralizing the AI training process, Bittensor ensures that models remain diverse and contextually relevant, while also allowing contributors to be compensated through blockchain-based incentive systems. This type of open and collaborative AI development is consistent with DePIN’s vision of creating more inclusive and community-oriented digital economies.
Meanwhile, Threefold provides users with a sovereign digital identity system for Web3 applications, helping users control their data while contributing resources to the decentralized network. By facilitating cloud storage and decentralized computing, Threefold empowers individuals and organizations to participate in tokenized digital economies, driving increased adoption of DePIN.
As more platforms and infrastructure projects emerge, the DePIN market will increasingly be seen as a key enabler of token finance and decentralized governance. The possibility of integrating blockchain technology with physical infrastructure, whether for energy or telecommunications networks or AI-driven smart cities, opens up new possibilities for more efficient, sustainable and secure systems.
Competing with centralized models
Despite DePIN’s promising growth prospects, it is important to consider the challenges posed by traditional centralized infrastructure models. Businesses and governments currently rely heavily on large-scale, centralized solutions for many critical sectors, including energy, communications, and data storage. These systems are usually more efficient in terms of scaling and ease of management but lack the transparency, security and fairness that blockchain and decentralized models provide.
DePIN’s success will depend on its ability to overcome the efficiency gaps inherent in decentralized networks, especially in terms of transaction processing speed, scalability, and security. While decentralized models can provide greater flexibility and redundancy, they often face significant challenges in terms of cost and complexity, especially as infrastructure grows.
One area where DePIN may find early traction is in the creation of decentralized energy grids and smart cities, where blockchain technology could offer significant advantages over traditional systems. By using blockchain technology to track energy use and transactions, for example, DePIN can enable peer-to-peer energy trading, more efficient energy distribution, and enhance grid reliability.
The Road to $3.5 Trillion: What’s Next for DePIN?
As the DePIN market continues to grow, key industry players are forging partnerships, building infrastructure and obtaining regulatory approval to ensure the sustainability of the sector. In particular, the increasing focus on decentralized wireless networks, AI collaboration, and token finance will likely drive the development of DePIN in the coming years.
However, achieving the projected market size of $3.5 trillion by 2028 will require significant investments in infrastructure, cross-industry collaboration, and global regulatory harmonization. As DePIN technologies mature and gain wider acceptance, the market will likely see the emergence of new business models, products and services, each designed to leverage decentralized infrastructure for the next generation of digital services.
DePIN’s future looks bright, with the potential to reshape industries, decentralize traditional power structures, and create a more inclusive and resilient digital economy. The next few years will be crucial in determining how quickly this market expands and how it integrates with traditional infrastructure systems, paving the way for a new era of ubiquitous computing and tokenized digital finance.
With blockchain and AI converging to fuel DePIN’s growth, the market is poised for explosive growth. With the sector expected to be worth $3.5 trillion by 2028, it is clear that decentralized physical infrastructure networks have the potential to redefine how industries handle infrastructure, data, and finance in the coming decades.
