DePIN Allows Us to Be Stakeholders in the Machine Economy

As a researcher delving into the evolving landscape of decentralized physical infrastructure, I am excited to contribute to CoinDesk’s new initiative: the DePIN Vertical. In this op-ed piece, I will be exploring and shedding light on various aspects of this emerging industry.

People are the ones who receive the benefits of this process, and they include those who build smartphones, package parcels, and even deliver pizzas. While some may argue that robots alleviate the strain of monotonous tasks, others may contend that automation has displaced jobs altogether. The reality is that automation can lead to a zero-sum situation: as robots take on more responsibilities, there are fewer opportunities for employment, forcing those who have lost their jobs to vie for a diminishing number of positions.

Certainly, let’s not overlook the finer points. Automation doesn’t merely eliminate positions, it also generates new ones. Although there are fewer jobs involved, they typically necessitate greater qualifications and expertise. For instance, a self-driving taxi service would spawn fresh opportunities for engineers and artificial intelligence specialists. However, how many cab drivers could realistically acquire the necessary skills to transition into these roles?

As a researcher studying the impact of technology on employment, I can’t help but empathize with those whose livelihoods are at risk due to advancements in autonomous vehicles and robots. It’s no surprise that taxi drivers are expressing their concerns and even resentment towards self-driving cars. Delivery bots and tea picker robots face similar backlash, leaving many feeling uneasy about the future.

But, as it happens, Web3 can help.

From victims to stakeholders

People are apprehensive about automation due to feeling powerless against a vast, world-altering process that seems to work against their best interests. The antidote to this fear lies in fundamentally shifting the nature of this process so that everyone is an active participant rather than a passive victim. This is where Web3 comes into play, offering a decentralized and inclusive approach to technological advancement.

Beginning with a relatable story, car sharing and rental vehicles are often met with indifference or neglect by users. However, our analysis of cars managed by a Viennese car-sharing company revealed an unexpected finding. Individuals who had a financial stake in the revenue generation of Tesla vehicles displayed exceptional care towards them. Regularly, someone would take the car for a wash or clean its interior, even without any incentives. Their actions, altruistic as they were, did not go unrewarded, but there were no explicit rewards given. Instead, the simple feeling of ownership over these cars’ financial success transformed their perception from liabilities to valuable assets.

In the realm of Web3 technology, the concept of real-world assets (RWAs) gains significance. By converting a tangible asset like a machine into digital tokens on the blockchain, you create an instrument that invites everyone to become a partaker in its automation process. This trustless mechanism eliminates the need for a centralized entity’s goodwill and ensures transparency and fairness. For instance, consider an automated smartphone factory issuing tokens representing shares of its revenues; Web3 technology makes this decentralized revenue distribution a reality.

Decentralized Physical Infrastructure Networks (DePINs) offer equal promise in diffusing societal challenges by serving as a platform for intricate automated devices to generate value for their proprietors. Ranging from smartphones and drones to automobiles, DePINs empower individuals to accomplish more with their daily gadgets, earning tokens by offering real-world services. As our tools become increasingly intelligent, they will be capable of performing more tasks, leading to new use cases for DePINs and increased opportunities to reap rewards. In this way, we transition from being passive consumers of centralized infrastructures to active participants and stakeholders in community-owned networks.

As a crypto investor, I’m excited about the relentless march of innovation in our industry. However, it’s essential to keep in mind that progress comes with consequences. Automation brings immense potential for corporations, but it could also render millions jobless and struggling financially. Therefore, as we embrace this transformative process, let’s ensure it doesn’t just enrich a select few.

Disclaimer: The perspectives outlined in this article are my own and may not align with those held by CoinDesk, Inc. or its stakeholders.