DePIN
·According to Messari estimates, it is expected to grow to US$3.5 trillion by 2028
·The core mechanism of DePIN
·Server (cloud) network
·wireless network
·Sensor Networks
·Energy Network
·The meaning and value of DePIN
·Unit cost and scale effect
·Reuse idle resources
·Regional effectiveness
·Centralized cloud service provider
·Web2 model of Web3 system
·Concentration of power
·Strict review
·Lack of pricing power
·Single point of failure
Reasons why decentralized infrastructure is often the best choice:
·Advantages of decentralized cloud computing
·Decentralized cloud computing applications
·The development prospects of decentralized cloud computing
·Related projects
The current valuation of the entire#DePintrack is approximately US$9 billion. According to Messari’s estimates, it is expected to grow to US$3.5 trillion by 2028.
Comprehensive sources: Puzzle Ventures, Report Finance, Investment Bank VCPE Tribe, OORT, Rocky, Messari, Marsbit, Sami Kassab, etc.
DePIN is the abbreviation of Decentralized Physical Infrastructure Networks, which as the name suggests is "decentralized network hardware infrastructure". In fact, this kind of decentralized hardware facilities has had practical applications of vague concepts a long time ago. For example, the Bitcoin mining machine is actually a decentralized hardware network, and the power grid management system in the web2 world also covers A certain concept of decentralized hardware facilities.
In order to accurately define the concept of DePIN in this article, we adopt Messari’s explanation of DePIN: a method that uses blockchain technology to coordinate multiple individuals in a permissionless, trustless and programmable manner through token incentives. The physical hardware facilities of the unit. DePIN can also be described as Proof of Physical Network (PoPW) or Token Incentivized Physical Infrastructure Networks (TIPIN). In simple words, it is a network composed of countless individual pieces of hardware managed by token incentives, and this network can be used to serve certain specific projects.
From a broad perspective, the scope covered by DePIN is actually very broad. PoW mining machines are hardware facilities that maintain the operation of the blockchain network. However, as the traditional PoW model is gradually eliminated, mining machines are not within the scope of this article. This article will focus more on providing specific services on the blockchain network. The hardware network of services, rather than the blockchain network itself. From another perspective, the entire Web3 world is built on the DePIN network, because the operation of each node is based on individual units renting their own servers. After clarifying these two logics, we can focus more on the research direction of this article: services that are not covered by the blockchain network itself and provide additional toB or toC services, but are managed and coordinated by the blockchain network. A network formed by hardware facilities.
As shown in the figure, the entire DePIN vertical ecological chain is more complex than ordinary web3 projects.
In the upstream, project parties need to consider the choice of manufacturer for hardware equipment, especially projects involving high-precision sensing equipment and chips. They need to select suitable partners from the perspectives of cost, quality, and large-scale production.
In the midstream, project parties need to consider the usage scenarios of hardware equipment and integration with corresponding third-party service providers/carriers, which sets a threshold for users’ own conditions, such as the need for resources such as network speed, power, and drone driving. This makes the overall cost of use for users relatively high.
In the downstream, the project party must establish a corresponding integration platform based on project needs and design an economic model that conforms to the flywheel effect, which poses a high test to the project party's knowledge and experience. In general, a complete DePIN project is a more complex and comprehensive web3 project.
DePIN’s core mechanism
The DePIN economic model effectively solves the chicken-and-egg problem associated with traditional hardware networks. Using token rewards, protocols can incentivize individuals to steer the supply side of the network to the point where end users find their services attractive. Through this reward system, the network can build the initial momentum necessary to compete with established Web2 companies and gain adoption.
Moving away from traditional centralized infrastructure deployment models has the potential to provide higher levels of efficiency, security, and resiliency while also being more cost-effective.
DePIN-related protocols are designed to challenge those in the legacy multi-billion dollar infrastructure industry, which can be divided into four main categories:
Server (cloud) network
Cloud services industry: valued at US$427 billion; expected to grow to US$1 trillion by 2028, with a compound annual growth rate of 15.7%.
wireless network
Telecommunications industry: valued at US$1.7 trillion; expected to grow to US$2.3 trillion by 2028, at a CAGR of 5.4%.
Sensor Networks
Sensor Analytics Industry: Valued at $13.5 billion; expected to grow to $30.5 billion by 2028, with a CAGR of 14.5%.
energy network
Virtual Power Plant (VPP) Industry: Valued at US$1.2 billion; expected to grow to US$6.5 billion by 2028, with a CAGR of 33%.
Smart grid data industry: valued at US$44 billion; expected to grow to US$140 billion by 2028, with a compound annual growth rate of 21.9%.
The overall addressable market for DePIN is estimated at over $2.2 trillion and is expected to reach $3.5 trillion by 2028.
Server (cloud) network
A server network is a group of computers that work together to provide a variety of web-based services by utilizing idle storage, computing, and bandwidth resources.
The Decentralized Servers sector category consists of four network categories:
Storage networks can be divided into file storage networks and relational database networks. File storage networks are designed for long-term data storage and archiving. Relational database networks are designed to manage structured data that is frequently accessed and updated.
Computing networks can be divided into two broad categories: general purpose (GP) computing networks and special purpose (SP) computing networks. The GP computing network provides computing resources that can be used for a variety of applications. SP compute networks are tailored for specific use cases such as transcoding, rendering, and machine learning.
Content delivery networks (CDNs) deliver data at high speed by caching a copy of the data close to the user's location.
A virtual private network (VPN) provides a secure connection between a user's device and the Internet, creating a private network while using the public network.
wireless network
Decentralized wireless (DeWi) networks aim to revolutionize the way communications networks are built and operated. DeWi networks achieve superior unit economics due to reduced capex and opex and the elimination of spectrum licensing costs compared to legacy providers.
Sensor Networks
Decentralized sensor networks consist of a network of interconnected devices embedded with sensors that collect real-time data from the physical world and then transmit it to gateways for processing and analysis. Data collected by these networks may include environmental and weather data, vehicle and traffic data, and street view and aerial imagery data.
energy network
Decentralized energy networks aggregate distributed energy resources to create a more resilient and efficient energy network. Virtual Power Plants (VPPs) are a key component of these networks, consisting of battery and controllable load resources that work together to balance power supply and demand on the energy grid. These networks are able to control energy system flexibility (VPP), collect real-time energy consumption data and create verifiable renewable energy credits.
The meaning and value of DePIN
The concept of DePIN was proposed because of its far-reaching significance and value. It is of great significance to the future web3 industry form and the theoretical development of technological revolution and economic revolution.
单位成本与规模效应
DePIN的这种crowdsourcing模式可以降低整体的成本（或者说将成本分散化）,并且能够在短时间内快速规模化。在之前的文章中我们提到（参考本号文章《去中心化存储的现状与未来》），Filecoin和Arweave这样的去中心化存储平台相比Amazon S3的存储价格可以便宜几十倍到上百倍，而helium提供的热点信号和Render Network提供的GPU渲染服务都比传统的中心化服务商有价格优势。Helium的LongFi协议辐射范围是Wifi的200倍，而1个需要接受数据包的设备如果每1小时更新一次，一年的总费用是0.09美元。相比之下，使用例如AT&T这样的大型信号服务商的总费用约是36美元。另一方面，DePIN在其他方面的成本也有所降低，包括人力成本、厂房成本、运维成本等都由于其去中心化的特性而几乎不再存在。本质上来说，DePIN的轻资产模式是对传统ICT行业重资产模式的一种破坏式创新。
However, the other side of the coin is instability and security risks. A completely permissionless hardware network that relies on token incentives to manage nodes is, at least so far, just an ideal idea. In practical applications, you may encounter various problems: the imbalance of income and expenditure caused by token floating and eventually reaching the "shutdown price", triggering a death spiral; misoperation caused by the unprofessionalism of a single node, causing malfunctions; nodes doing evil things behavior, hacking issues, and more. Therefore, solving these problems requires high business capabilities of the project team, and also requires further improvement of the overall blockchain infrastructure. It is foreseeable that different levels of demand correspond to different levels of service providers. Businesses with high security and stability requirements use centralized large service providers, while high-frequency and low-demand data service needs can use DePIN. In other words, DePIN means what DEX means to traditional finance.
闲置资源再利用
DePIN可以将分散的闲置资源集中起来并提供给最需要、最有价值的业务。这个话题实际上非常有趣，因为闲置资源再利用可以说是创造了额外的市场和价值，同时又可以带动个人产生额外的收入。从目前主流的DePIN项目来看，收集的闲置资源主要是四块：硬盘存储空间、通信流量、GPU算力、能源。但是理论上来说，我们可以想象未来更多的类似闲置资源是可以被集中再利用的，例如摄像头、屏幕、脑力等等。这实际上是数字信息领域的一次全球化共享经济尝试，其本质与金融领域的闲置资金理财和运输领域的闲置车辆租赁异曲同工。
But is this model of reusing idle resources a necessary factor for future economic development? It is true that idle GPU, hard disk space or WiFi are idle during abnormal use or working hours, but is full-load work that completely covers all hardware a state we want to form in the future? These are actually deeper ethical issues. On the one hand, this large-scale sharing economic model is based on credit. Therefore, any mistakes in the design of token incentives will lead to a small number of people taking advantage of loopholes to gain, while most participants will suffer losses. and users. On the other hand, large-scale access hardware interfaces will bring about reduction of privacy and data leakage problems in all aspects. Therefore, under the existing infrastructure environment, DePIN is not suitable for everyone to participate, and the upper limit of its market size is also lower than the sharing economy in the non-digital information field.
区域性效能
区域性效能指的是通过分布式的硬件可以提供相比中心化硬件服务商更高的短时效能，主要场景是游戏渲染和计算。这一特点目前还没有被证实且大规模应用，但是仍然值得我们去思考其意义。目前的多人链游场景下，当成规模的用户同时在线时需要调用公共RPC节点来进行智能合约读取等执行层面的任务，而当节点进入过载状态时就会造成延迟甚至是宕机。这个问题本身是区块链规模化应用的一个技术壁垒，而目前也有一些针对性的举措，例如Altlayer采用的执行环境租用，L2s，gamefi专用服务器等。而一些DePIN项目也在尝试通过密度更高的硬件网络来解决这样的问题。以exaBITS为例，当其云计算硬件布局的密度足够广之后，就可以针对游戏玩家所在的地理位置即时调用就近的服务器，从而将成千上万玩家的计算或渲染需求以更平均的方式发布并解决。同理，当GPU渲染或AI计算等大规模计算需求产生时，在DePIN网络中相应的一批硬件也可以短时满足需求。从理论角度来说，DePIN所铺设的高密度、分散化的硬件可以即时满足短时高计算量的任务需求，从而形成区域性的效能提升。当然，这只是一种理想状态下的假设，专业游戏服务器的分布程度可能达到一定的广度就可以满足全球玩家的需求，而DePIN这种综合性计算硬件所带来的游戏体验也并不一定就比想象中的好。无论如何，DePIN给我们带来的想象空间是巨大的，未来更大的冰山会逐渐浮出水面。
Web2 model of centralized cloud service provider Web3 system
Web2 technology has security threats, cloud computing monopoly, insufficient computing resources, and high costs.
As we all know, the Internet relies heavily on large service providers to provide computing infrastructure to run large data center networks and cloud-based operations. The node-as-a-service (or RPC-as-a-service) market is becoming increasingly competitive with emerging server infrastructure providers. VCs and established tech companies are pouring hundreds of millions of dollars into the space.
Additionally, as blockchain size and transactions per second grow, so do the technical requirements for running nodes.
Centralized providers have the wherewithal to buy the clout and Web3 infrastructure, but we also need to reflect: Is it right for the organizations that dominate Web2 to decide the future of Web3?
Concentration of power
If one or more centralized providers end up gaining control of a majority of the infrastructure of a blockchain (or multiple chains) through the number of nodes they run, while being restricted to a single country, then this could give rise to The policy, security and continuity of centralized systems lead to disaster.
Strict review
Centralized providers can directly or indirectly ban users from their dApps based on geographic location (single country) or other factors. Centralized providers will make it clear in their terms of service that they must comply with all laws and regulations, which means that dApps that rely on their services will also be subject to relevant scrutiny.
lack of pricing power
What users want from Web3 is to be as accessible as possible, with low fees and entry barriers when interacting with node infrastructure. However, centralized providers lack community governance and the pricing power is in the hands of the providers.
single point of failure
Centralized Web3 providers such as Infura and Alchemy use AWS data centers to house their nodes. This limits the global distribution of nodes and latency is correspondingly higher. Furthermore, if AWS fails, it will cause all dApps that rely on these nodes to communicate with the blockchain to fail.
Decentralized infrastructure is often the best choice for the following reasons:
*Running your own node requires a lot of manpower, time, capital and professional technical skills.
*Centralized infrastructure is the antithesis of Web3, providing vulnerabilities for censorship, malfunctions, and manipulation while rewarding VCs and centralized companies.
*Decentralized infrastructure provides solutions consistent with the original intention of blockchain technology. While motivating node operators, users and communities, developers have lower latency, more stable and high-performance standards, forming a decentralized, independently operating node network.
Advantages of decentralized cloud computing
Compared with traditional centralized cloud computing, decentralized cloud computing has outstanding advantages in construction cost, security performance, user experience and operation methods.
Decentralized cloud computing applications
Decentralized cloud computing is used in many fields such as finance, medical care, social communications, games, energy, etc., and its application scope is constantly expanding.
The development prospects of decentralized cloud computing
In the future, with the in-depth development of new Internet technology applications and the further expansion of data volume, the decentralized application market has broad prospects for development.
Related projects
Storage network category: Filecoin, Arweave, STORJ, etc.
Computing network category: Akash Network, Render Network, CUDOS, FLUX, etc.
Wireless network category: Helium, Wicrypt Network, etc.
Sensor network category: Hivemapper, DIMO, etc.
Computing + storage + network: Web3 data cloud Oort
We all know that building an application, such as developing a game, not only requires storage, but also computing and network support. From the perspective of Web3 developers, if you can directly enjoy the lowest cost on a Web3 cloud service platform, the best To build a good development experience, there is no need to reinvent the wheel, and there is no need to separate multiple platforms to connect computing and storage network services. Then a decentralized cloud service platform with a complete set of storage, computing, and network is needed. From the current commercial progress of Oort , comprehensively speaking, OORT’s subsequent business expansion and customer experience will be more explosive.
The DePIN track is an imaginative track that can completely break through the boundaries of the industry. Hardware networks based on decentralized storage and computing are still an important underlying infrastructure for the entire web3 ecosystem, and can also provide lower-cost back-end designs for the application layer. The hardware facility network, dominated by GPUs and sensors, is trying to establish a new service rental and matchmaking market.
About Oort
OORT is a decentralized data cloud platform that aims to integrate global computing and storage resources, maximize privacy and cost-effectiveness, and provide a set of enterprise-level, decentralized solutions for generative artificial intelligence and data-driven businesses. .
Oort's core technology is endorsed by U.S. patents and academic publications, and has established solid partners with more than 40 projects/companies and more than 20 prestigious American universities (such as Harvard, MIT, University of Chicago, etc.) or customer relations.
*20+渠道/生态/客户；BNB Chain（币安）、Tencent（腾讯）、DEll（戴尔）、EMURGO Ventures(加密市值前十的Cardano（ADA）公链、Lenovo Image（联想图像）现为至像、Supermoon Camp、Midas wireless、1024bank、waterdrip、 etc 等
