DePIN Promises Small Business Innovation in Emerging Markets

Transforming cloud computing into a decentralized structure is essentially establishing a marketplace with two distinct sides. Network nodes, which are frequently used in DePIN initiatives, serve as a practical and safe means for users to effectively possess pieces of this network.

This opinion piece is included in our latest section, the Decentralized Physical Infrastructure Nexus (DePIN), which focuses on the burgeoning field of decentralized physical infrastructure.

Instead of being solely controlled by a few entities, physical assets such as telecom infrastructure or video streaming networks could be fractionally owned by individual node owners who earn a modest return on their investment. In this model, users pay to access these shared networks, allowing for more widespread ownership and use rather than monopolization.

Let’s focus on how crucial local node operators are for boosting a region’s economy and fostering innovation. Interestingly, DePIN networks could potentially give smaller players an edge in competition, which is quite refreshing.

For example, Helium’s network is being deployed for livestock tracking in Africa, helping to protect endangered species while supporting farmers’ livelihoods. Helium CEO Abhay Kumar CEO noted that: “The cow in this case, or the livestock in this case, is sort of the center of the economy for this community.”

Indeed, this is a local innovation born from DePIN.

In developing economies, traditional infrastructure may be lacking or unstable. These areas could potentially lead the charge in widespread acceptance of distributed network systems, which function similarly to small local businesses like a fruit stand or bike repair shop, each acting as a node in the system. This is due to their decentralized nature and ability to operate independently.

Instead, let’s consider nodes as “small business franchises” instead of envisioning an immediate, revolutionary shift towards extreme decentralization within the context of a global cypherpunk movement.

DePIN is not a crypto gimmick; it’s actually a small business for node operators

It typically requires time for new concepts to be accepted, but technologies are frequently embraced more swiftly in developing regions. In the case of African banking, internet banking was bypassed entirely as it transitioned directly into mobile banking. This leap was facilitated by locally-tailored innovations that led to unique models for payments and credit within Africa.

DePIN is a subtle shift in technology, happening piece by piece and largely unnoticed by major tech companies. This change is being driven by local factors such as the practicality of running a computing node for small businesses in specific regions.

The DePIN supply-side business model is gradually influencing our perspectives on physical infrastructure ownership. However, it may not be a groundbreaking shift for Western users just yet. For me, I’ll continue using platforms like Zoom or Telegram and relying on AWS Cloud. But for node operators in emerging markets, this could potentially transform their personal finance situation significantly.

Operating cloud computing nodes as a small-scale business isn’t just a fad or something related to cryptocurrencies, but rather it’s a legitimate economic venture offering substantial benefits such as robust and dependable network infrastructure for users at a local level.

Consider a local entrepreneur in Bangladesh offering cloud storage solutions to individuals and businesses seeking enhanced and dependable services. Since they utilize a regional node, these businesses could potentially save money compared to using Amazon Web Services (AWS). This entrepreneur, by generating income from the node, may have a sustainable livelihood. In essence, this setup benefits everyone involved as it offers cost savings for businesses while providing an opportunity for local economic growth and self-sufficiency.

New ideas will start in the emerging markets

As an analyst, I’d emphasize that the DePIN technology we’re discussing paves the way for unique and groundbreaking business models that Amazon Web Services (AWS) may find challenging to emulate.

By making local nodes more affordable, we can encourage an increase in local start-ups, thereby fostering local growth and boosting ownership. These economies in transition will inspire innovative business strategies, centered around profiting from the management of these nodes.

Enhancing internet services can significantly boost the quality of distance learning, video streaming, gaming, and healthcare services. However, it’s important to note that Amazon Web Services (AWS) may not directly address these issues; instead, it’s the people in the community who are experiencing the problems that should be focusing on solutions tailored to their unique circumstances.

Nodes can provide sustenance for a family, but what’s truly significant is their potential to finance human development. For someone holding a low-paying job, owning a node could mean an increased income that allows them the freedom of time, enabling them to generate innovative products, novel concepts, and local enterprises inspired by their experiences managing a node.

DePIN addresses more than lags, it’s a catalyst for global innovation

However, while this revolution starts in the emerging markets, innovation will sprout everywhere.

Delays and technical problems in rapidly developing markets can stifle innovation. However, it’s important to note that these issues also negatively impact productivity on a global scale.

DePIN implies that nodes can be positioned effectively – not just within India, but also in bustling cities such as New York City. The strategic placement of Huddle01 nodes in New York, for instance, has already resulted in reduced latency and potential superior performance compared to big tech. This improved internet speed will foster innovation not only in NYC, but also in other locations.

In essence, we’re curious about the fresh business concepts that DePIN could foster. Recall the pioneering era of multi-purpose apps in China’s internet scene, or the financial technology breakthroughs in Africa. What groundbreaking ideas will the node operators in India conceive instead?

At DePIN, our focus is on nurturing human resources. It’s an exhilarating time, as we’re just getting started. The role of the DePIN node operator, which we may soon refer to by another name like “local micro-franchise programs,” holds immense potential for boosting local economies and benefiting mankind at large.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.