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Author: Spike @ Contributor of PermaDAO
Reviewer: Lemon @ Contributor of PermaDAO
Evolutionary dynamics of DePIN, toward a very large-scale collaborative network
On September 28, A16Z published a paper hoping to find a universal solution for DePIN Verification. It believes that DePIN involves the issue of data on-chain for physical hardware, and there will be many data credibility issues, which can be summarized into the following three points:
Service providers or nodes cheating. When a project is launched or in the early stages of operation, if the incentives provided by the project party can cover the operating costs of the node, then the node will have sufficient motivation to make a large number of fake transactions to obtain subsidies from the project party.
Service providers or nodes are "playing rotten". Unlike fake orders, some nodes may violate their promises and operate inefficiently, which will also cause data credibility issues and a decline in user experience;
Nodes bribe users. A "collusion" mechanism may be formed between nodes and users, where both parties work together to create low-quality data to "cheat" the project's subsidies or incentives, which will cause quality problems for the project in the long run.
In terms of solutions, A16Z believes that the problem can be partially solved through measures such as random sampling, but for the long-term development of the industry, more effective solutions are still needed.
Coincidentally, two days before A16Z asked the question, Kuleen Nimkar, head of Solana DePIN, declared Solana's preference for DePIN, believing that this is a new model for changing the gig economy. Based on the existence of hardware, miners can obtain sustainable capital gains.
As early as when the decentralized rendering network Render switched to Solana, its high-speed mode became the favorite of the community, and the most successful DePIN mode Helium rebounded based on Solana. In terms of decentralization, Solana itself has been criticized, but it still has the strong support of the DePIN project, which fully demonstrates that capital efficiency is the mainstream choice in the current market.
Image caption: DePIN data
Image source: https://depinscan.io/
However, Arweave is still a better choice for DePIN. Based on A16Z's thinking and the practice of the Solana project, we believe that the current DePIN is still evolving. When SCP Ventures invested in Starpower, it realized that the current DePIN is still trapped in the logic of DeFi and believed that the public chain model is the optimal solution. However, the real key to DePIN lies in the growth of data credibility, which can attract mainstream users to pour in.
On the one hand, the DePIN data of large-scale users will far exceed the carrying capacity of the existing blockchain network. If a single DePIN project produces TB-level data per day, then the model of a dedicated data layer must be considered, returning to the underlying principles of the blockchain spirit. De-trust is synonymous with decentralization, not everything must be public chain.
On the other hand, we hope to explore and summarize the evolution model of DePIN itself. The current number of various DePIN network nodes is still insufficient. In our vision, the nodes of a successful DePIN project should become daily necessities for billions of people around the world, just like mainstream electronic consumer products. This will far exceed the current market size in scale.
Everything has its own evolutionary process. The most typical example is the progress and decline of human society. Evolutionary dynamics was born out of attempts to apply mathematics to biology, but has gradually expanded its application scenarios, such as looking at various classic problems from a historical perspective - the degree of centralization in Chinese history.
Image caption: The evolution of the relative size of the central network in the elite social network from the Sui and Tang Dynasties to the Song Dynasty
Image source: https://www.dhcn.cn/en/site/works/papers/type/network/3412.html
DePIN from the perspective of evolutionary dynamics
Evolutionary dynamics is a scientific method to study the changes in gene frequency during biological evolution. It uses mathematical models and computer simulations to describe and predict the evolution of genes in a population. The core idea of evolutionary dynamics is that changes in gene frequency are driven by both genetic mechanisms and natural selection.
In evolutionary dynamics, genetic mechanisms include mutation, recombination and gene flow, which are the main causes of changes in gene frequency. Mutation refers to the variation of gene sequences, recombination refers to the recombination of gene fragments between different genes, and gene flow refers to the exchange of genes between different individuals. The occurrence of these genetic mechanisms will lead to changes in gene frequency, which in turn affects the genetic structure of the population.
On the other hand, natural selection is another important factor in evolutionary dynamics. Natural selection refers to the selection pressure of the environment on different genotypes, which leads to the gradual increase of genotypes with stronger adaptability in the population and the gradual decrease of genotypes with weaker adaptability. Natural selection shapes the adaptability and evolutionary direction of the population by changing the gene frequency.
The research object of evolutionary dynamics can be any biological group with genetic variation and natural selection, including bacteria, plants, animals and humans. By establishing appropriate mathematical models and computer simulations, evolutionary dynamics can help us understand the mechanism of biological evolution, predict the adaptability and evolutionary trends of species, and design and optimize applications such as bioengineering and medical treatment.
Evolutionary dynamics is a mathematical method for studying the evolution of complex systems and has been widely used in the financial industry. In financial markets, evolutionary dynamics can be used to simulate and predict the behavior and evolution of markets. By modeling the behavior and strategies of market participants, evolutionary dynamics can help us understand the dynamic changes of markets and the mechanism of price formation.
In the financial industry, evolutionary dynamics can be applied in many aspects. First, evolutionary dynamics can be used to study the price formation process in the market. By building a model, we can simulate the behavior and strategies of market participants and observe the evolution of market prices. This helps us understand the price formation mechanism in the market and the supply and demand relationship in the market.
Secondly, evolutionary dynamics can be used to study risk and volatility in financial markets. By building a model, we can simulate the risk preferences and trading strategies of market participants and observe the evolution of market volatility and risk levels. This helps us predict market risk and volatility and develop corresponding risk management strategies.
By building models, we can simulate the behavior and strategies of market participants.
In DePIN development, evolutionary dynamics can be applied to modeling and predicting market behavior. By modeling the behavior and strategies of market participants, evolutionary dynamics can help us understand the evolutionary process and dynamic characteristics of the market.
Specifically, DePIN (decentralized physical hardware) is an emerging technology that transforms physical hardware devices from the traditional centralized architecture to a decentralized structure. In the traditional centralized hardware architecture, all hardware devices are controlled and managed by a central server, while in DePIN, hardware devices can communicate and interact directly with other devices without the intervention of a central server.
The characteristics of DePIN are mainly reflected in the following two aspects:
Decentralization: DePIN adopts a decentralized architecture, where each device can participate in the entire network as a node, enabling direct communication and interaction between devices. This decentralized structure not only improves the reliability and security of the system, but also reduces dependence on central servers.
Distributed storage: The data storage method in DePIN is distributed. Each device can be independent of each other, but at the same time needs to be connected to a unified main network for data aggregation. For example, Starpower will be built on the Arweave network to ensure the credibility of the data.
Image Caption: Starpower Network Status
Image source: https://www.starpower.world/#/
In abstract, the definition of DePIN can be summarized as follows:
Decentralization: DePIN achieves a decentralized architecture by distributing computing and storage functions across multiple physical devices. This means that there is no single central node in the system, but rather multiple nodes working together to provide services and process data.
Reliability: Since DePIN adopts a decentralized architecture, each node in the system can operate and provide services independently. This decentralized feature makes the system more robust. Even if a node fails or is attacked, other nodes can still continue to operate, ensuring the reliability of the system.
Security: DePIN’s decentralized architecture also improves the security of the system. Since there is no single central node, it is difficult for attackers to disrupt the entire system by attacking one node. At the same time, DePIN can also use technologies such as encryption and authentication to protect the security of data and communications.
Flexibility: DePIN’s decentralized architecture makes the system more flexible. Nodes can be added or removed as needed to adjust the system’s computing and storage capabilities. This flexibility makes DePIN suitable for application scenarios of all sizes and needs.
In the development of DePIN, adaptability from the perspective of evolutionary dynamics refers to the ability of hardware to adapt to market demand and technological changes. Variability refers to the innovation and improvement of hardware. The perspective of evolutionary dynamics helps us understand that the development of DePIN is a process of continuous adaptation and variation. Through continuous attempts and improvements, hardware can gradually enter thousands of households. In the development of DePIN, different hardware designs and architectures will undergo a continuous evolution and optimization process.
For example, evolutionary dynamics can be used to optimize the network topology in DePIN. By simulating different network structures and evaluating and evolving them using evolutionary algorithms, the most suitable network topology for DePIN can be found. This can improve the performance and stability of DePIN.
Evolutionary dynamics can also be applied to the resource allocation problem in DePIN. In DePIN, the allocation of resources is crucial to the performance and efficiency of the system.
For example, evolutionary dynamics can be used to explain the progress of DePIN (decentralized physical hardware). In decentralized physical hardware systems, the interaction and adaptive evolution between individual nodes are very important factors. Evolutionary dynamics provides a theoretical basis for deducing how these individual nodes gradually optimize the performance of the system through adaptation and selection.
In evolutionary dynamics, individual nodes are viewed as intelligent agents with certain behavioral strategies. These agents adapt to the environment and optimize their own performance through interactions with other nodes. In the DePIN system, individual nodes can be physical hardware devices that realize their functions through mutual connection and information transmission.
Another important concept in evolutionary dynamics is adaptability. In the DePIN system, the adaptability of a node can be measured by its performance indicators, such as processing speed, energy consumption, etc. Evolutionary dynamics focuses on the interaction between individuals and the environment in the system. Individuals can be regarded as hardware devices and network nodes, while the environment includes factors such as technology, market, and society.
Evolutionary dynamics emphasizes the importance of diversity and variation. In the development of DePIN, different hardware devices and network nodes have different functions and performances. This diversity makes the system more adaptable and resilient. By introducing new hardware devices and network nodes, the system can continuously innovate and improve.
Finally, evolutionary dynamics also emphasizes the role of selection and competition. In the development of DePIN, selection and competition are important driving forces for the evolution of the system. By selectively retaining hardware devices and network nodes with higher adaptability, the system can be continuously optimized and improved. At the same time, competition will also promote the elimination of unfit individuals, thereby improving the efficiency and performance of the overall system.
The ultimate solution: ultra-large-scale hardware collaboration network
After the launch of Starpower, SCP Ventures' thinking gradually became clear. Following the development ideas of traditional ICT, IoT and AIoT, it will still take time to evolve into a market with the scale of AIoT. According to Bosch Sensortec data, the global AIoT market size is expected to reach US$83.6 billion in 2027, with a compound annual growth rate of 39.1%, which is actually far higher than the growth rate of the existing blockchain-based DePIN economy.
According to Starpower's plan, its future business scope will expand to many scenarios such as individuals, families, transportation, industry and cities. Basically, the next step of evolution is a super-large-scale collaborative network. This network will be divided into two layers. One is the indirect collaboration between individuals, and the other is the data collaboration between physical hardware. It can be understood that the ultimate goal of DePIN's evolution is to become a network covering the flow of information and economic value.
Hyperscale collaboration refers to the process of using the Internet and digital technology to enable a large number of people to work together to complete a task or solve a problem even though they are dispersed in time and space. In the traditional collaboration model, people usually need to work together in the same place, but hyperscale collaboration breaks this limitation and enables people around the world to collaborate and communicate in real time through the Internet.
The significance of large-scale collaboration is that it can bring together knowledge and wisdom from around the world to achieve resource sharing and optimization. Through large-scale collaboration, people can quickly find the right professionals to solve problems, no matter where they are. This collaboration model can greatly improve work efficiency and quality, while also reducing costs and risks.
Taking DePIN (decentralized physical hardware) as an example, the significance of ultra-large-scale collaboration is reflected in the following aspects:
Conclusion
Starting from A16Z's question, we carefully deduced the development trend of DePIN. We have reason to believe that the development of DePIN will combine blockchain to solve the problem of data credibility. At the same time, it will develop large-scale protocols along the Internet of Things to create an infinite network between people, people and machines, and machines and machines.
In this regard, Arweave can solve the data storage and computing problems to a considerable extent through its unlimited expansion capabilities, allowing project parties to freely launch any DePIN project. Traditional DePIN focuses on specific scenarios, while Starpower's practice targets the issue of how large groups of people can access it. Starting from the daily usage environment is the best choice.
references:
Introducing the Nakamoto Challenge: Addressing the Toughest Problems in Crypto
Solana DePIN projects aim to take gig economy to next level
RNDR surges 50% in two days after community approved Solana expansion
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