The first wave of DePin initiatives, around 2019, focused on digital infrastructure, but we now see other types of startups (DePin means decentralized physical infrastructure networks). Projects that focus on data or service networks have become more common. Ultimately, I classify DePins as those that use 1) Blockchain -based format, no central to operate infrastructure and 2) depend on physical infrastructure or effect such as servers, sensors or property.
Before moving to drivers, we need to understand that DePin projects always consist of two -sided markets. These markets have demand and supply aspect.
- The request side. The aspect in which users search for services or products to address a specific problem or need, which can be met with a service or DAPS.
- Display. The market side is hosted where decentralized infrastructure is hosted, including nodes, devices, sensors and more through the front end of the projects or DAPS.
So, what happens on both sides of these markets?
This makes it easy to provide DePin providing a better and more varied offer, which fits the various demand aspects.
I see two main drivers behind the online supply aspect:
- Cost curves Descending
- Icon Design improvement
Cost curves
Historically, infrastructure hosting capital requires that only large central entities can be accessed. As cost curves are low, almost anyone can become an Infra provider.
recently studies He suggested that memory costs have decreased 100x over the past two decades, and the costs of account (GPU) has decreased by 100-300X. Although the demand for these resources is growing (and there is a deficiency), it has reduced entry barriers to host a large account or memory. The capital required to build the infrastructure shrinks, enables more people to participate, operate the contract, and make the network more powerful without main failure points.
Accompanying symbols
For a long time, the design of the distinctive symbols of the benefit is seen as a dark art. Over the past years, knowledge has been quickly improved to provide more powerful symbolic models.
DePin networks often depend on the distinctive symbols of the facilities because of their impact on the network, as these symbols agree on incentives between the stakeholders with different economic interests. The distinctive audio symbol design is necessary to create the correct game theory and the behaviors that stimulate the network, which rewards the contributions appropriately. Distinctive codes for facilities also help start the effect of the first network, and more symbolic engineers now use scenario analysis and statistics during design. This should lead to more powerful designs capable of time and market fluctuations.
Demand
Historically, DePin projects were dedicated to the request, which means that services and applications were alive but witnessed the low interest rates of a variety of reasons. In the end increased demand, DePin makes companies that are viable, and start a budget wheel from improvements.
I see three main drivers behind the outbreak of the Internet:
- The ability to use DePin is improving
- Privacy and security became more interested in
- Data generation explodes.
The ability to use
Let’s be honest: Many Web3 applications today are not usable for anyone who has not spent a lot of encryption. I must strip the account and UX that supports AI to solve this.
2024 is the year in which the account has been stripped (which is hidden from users some technical wires for Blockchain) captured via Web3. The realization of the current Web3 user experience may not be convincing enough to persuade the main users to move from Web2 has recently generated a lot of attention. Today, there are a large number of Companies Focus on UX and abstract account. At the same time, we are witnessing ERC-4337, the upgrade ETHEREUM 2023 focused on this exactly, finding dependence with a wide range of projects, including DePin.
Meanwhile, artificial intelligence has been suffering from the Renaissance since the launch of GPT nearly two years ago, with models improved and integration is evolving quickly. Artificial intelligence assistants, who are now developed on Blockchain, are set to simplify the use of the application, which reduces the need for a human friendly front.
Privacy and security
Data protection concerns are proven to be useful for DePin adoption, which improves this due to its decentralized nature.
While the paradox of privacy is a well -documented fact, since spreading artificial intelligence across society, users are increasingly anxious. Especially about data management, privacy and security is a growing concern. We see evidence that users are increasingly looking for alternative solutions that give priority to protecting personal information. Depin, with its decentralized approach, enhances its privacy and safety, which makes it a more attractive option for individuals and companies. The increased sensitivity on this topic after decades of indifference creates the nice back winds of DePin.
Data generation
Estimates indicate that about 350 million TB of data is created every day. Humanity generates an unprecedented amount of data that must be stored in memory and processed with computers, which is very good in …
We create more data than ever. that it estimated 90 % of all data has been created today in the past two years. With GEN AI, the data has really become the twenty -first century oil, so we need to make sure that we store it well. Previously, many companies and individuals were not aware, whether stored in naked metal servers or cloud; Now there is more decision -making regarding data storage. With DePin DePin, he finds himself more and more applicable for the most firmly firmly options for storing and dealing with data.
What next
DePin has a lot for this, which explains the excitement between users, investors and the entire society. I believe a firm belief that Deepin will soon be re -definition how the economically important infrastructure is organized in society, least put it at least on an equal footing with the traditional infrastructure.
Note: The views expressed in this column are those of the author and do not necessarily reflect those of Coindsk, Inc. Or their owners and subsidiaries.
