DePIN Doesn’t Need New Infrastructure

I’m an analyst specializing in the emerging sector of decentralized physical infrastructure. In my latest op-ed for CoinDesk, I delve deeper into this intriguing industry.

One aspect that is frequently underestimated is the existing network at our disposal, which has the potential to catalyze a significant transformation in how the Web functions and thrives globally. Remarkably, we don’t need to search further than the gadgets in our pockets.

The internet today

The majority of the internet’s infrastructure today rests upon conventional, centralized servers managed by prominent tech corporations. But come 2024, an alternative model is gaining traction.

As a crypto investor, I’m always on the lookout for innovative technologies that can disrupt traditional systems and provide better returns. One such technology is Decentralized Physical Infrastructure Networks, or DePINs. Instead of relying on centralized data management systems, DePINs offer an alternative solution based on blockchain technology.

One way to rephrase this in natural and easy-to-read language is: The idea of crowdsourced infrastructure isn’t new, but there are limitations to how decentralized these systems can be in practice. This is due to the fact that they frequently necessitate expensive and specific hardware for network contribution. This cost barrier restricts the number of individuals or businesses who can fully participate, and may even lead them to create centralized farms instead, which ends up resembling the current state of affairs.

As a crypto investor, I’m excited about the possibility of transforming the current state of things. Instead of forcing users to acquire new hardware, why not tap into the powerful processing units and decentralized infrastructure that most of us carry around in our pockets? By adopting this approach, we could enable anyone to contribute by using their smartphones or similar devices to operate nodes. If executed effectively, this setup would offer sufficient resources for DePIN services to function seamlessly, while also creating a reward pool to motivate continued engagement and expansion.

We already have the devices

In the year 2023, approximately 69% of the global population was projected to utilize smartphones for accessing the internet. This percentage is predicted to increase, with these devices continuing to enhance in power each year. Collectively, they hold the potential to establish a revolutionary content delivery network that drives the information highway. By doing so, control over these services is shifted away from dominant corporations, while also addressing existing concerns of the current internet, such as outages.

With APhone, any standard device can be turned into a Web3 superphone using a browser application. Leveraging Aethir’s decentralized cloud tech, it distributes processing tasks across a network for enhanced computational power. This means users get access to improved GPU capabilities, larger storage options, and extra RAM without straining their local hardware. Consequently, devices can operate resource-demanding apps and store vast amounts of data independently of their own limitations.

As a network analyst, I can assert that Decentralized Pinned Nodes (DePINs) would pose a significant challenge to be taken down due to their distributed nature. With nodes and operators spread across the globe, essential services would remain largely unaffected by any attempts at disconnection or centralization. Moreover, the decentralized infrastructure reduces the risk of data unavailability caused by human error or deliberate censorship, thereby enhancing data accessibility for applications that rely on these networks.

DePINs broaden accessibility, lowering the threshold for participation almost universally. With the widespread ownership of smartphones and their usage not driven primarily by profit motives, this technology offers an opportunity for individuals and businesses to contribute their idle processing power and earn compensation. The financial benefits from providing services would no longer be monopolized by a few data giants but instead be distributed more evenly among the network’s supporters. An essential software update is all that remains necessary to activate this infrastructure.

The future is DePIN

At the onset of this significant transformation, numerous DeFi projects (Decentralized Finance) are under development and are poised to pick up pace. The growing recognition of this technology’s advantages will fuel a self-reinforcing cycle. As per Messari’s 2023 report, the market value for DeFi was estimated at approximately $2.2 trillion in the previous year and is anticipated to reach as much as $3.5 trillion by 2028. The evidence suggests that this sector holds a robust and enduring growth trajectory.

As a researcher exploring the potential future developments of the internet, I envision a scenario where our daily devices become integral components of a decentralized network. In this setting, each user would passively reap rewards simply by contributing to this new infrastructure. This shift could significantly alter the perception of the internet for individuals, instilling a sense of ownership and investment in the digital realm while dismantling the dominant hold of major corporations over it.

DePIN is a novel and emerging technology sector. Its future impact on the next few years is uncertain. However, it’s essential to note that significant foundations have already been laid. Instead of starting from scratch, we can build upon existing structures and advance the technology further.

Leveraging the vast network of smartphones that have become an integral part of societies worldwide can pave the way for a more inclusive, robust version of the internet. The key lies in embracing a software-driven approach that harnesses the power of crowdsourced resources. It seems we’re on the brink of this innovation.

As a seasoned crypto investor, I’d like to share an alternative perspective on the current market trends. Please keep in mind that my personal opinions do not represent the views of CoinDesk or any affiliated entities.