DePIN is not only a concept, DePIN represents a paradigm of decentralized applications. FutureMoney Group recently released the full report "The Future of DePIN 2024", by FMG research team and IoTeX research team.
Here is a fresh and quick look at key insights and predictions of The Future of DePIN.
01. DePIN's growth potential is immense
The expansion of blockchain into the real world is an inevitable trend. DePIN represents a paradigm of decentralized applications: the node economy, the miner model, and the transformation of the real world. By 2028, DePIN's potential growth is expected to be 20 to 120 times.
02. Layer 1/2 are the most certain and stable beneficiaries of ecosystem growth
In this cycle, public blockchains that support the DePIN ecosystem will receive the greatest dividends.
In addition to Solana, leading DePIN projects are selecting general-purpose base chains (such as Arbitrum, Polygon...). Furthermore, DePIN-specific chains (such as IoTeX, Peaq) and Layer 1/2 chains with AI concepts (such as Near, Aptos) may also benefit from DePIN growth in the future.
03. The development of the DePIN ecosystem relies heavily on middleware. Middleware will be the direct beneficiary of that
Currently, middleware is a crucial component of Layer 1. Despite the significant technical challenges associated with general-purpose middleware, we still anticipate breakthroughs.
Trusted hardware is mainly controlled through official authorization, while anti-cheating is achieved through governance and miner management tools. Once general-purpose middleware achieves a breakthrough, it will significantly lower the entry barriers for DePIN applications.
04. Miner opportunities
Similar to gaming guilds, the DePIN miner is expected to develop borderless hardware miner guilds. The current potential opportunities lie in the global hardware supply chain and node deployment services. Additionally, there are opportunities in the DePIN data aggregation tool layer.
05. In DePIN Application categories, GPUs are the fastest-growing and most mature field in the computing sector
Decentralized computing power platforms are experiencing strong growth driven by AI. However, GPU platforms often do not own GPU resources themselves, relying heavily on token incentives for supply. Therefore, GPU computing power is currently one of the most bubbly sectors within the DePIN ecosystem.
In the future, GPU platforms will move towards horizontal integration and vertical penetration. Additionally, the narrative of "compute-storage integration" based on combining storage with computation will emerge. Traditional storage solutions like Filecoin and Arweave will experience a resurgence.
06. Future of DePIN AI
There will be fierce competition in the AI sector. Bittensor and ORA are typical examples of DePIN AI projects. Led by Bittensor, large language models are capitalizing on their first-mover advantage by gradually attracting numerous leading projects across various sectors. It's expected that the future will resemble the internet boom of 2000, where every AI project will have an opportunity to thrive.
07. Sensors are a potential segment activated by AI
Data collected by sensors is essential for training or inferring AI models. Some sensors can also incorporate edge computing capabilities. Revenue from traditional channels will provide sensor projects with more space for innovation and decreased risk.
08. DePIN wireless & network
Similar to the model logic of energy networks, the ultimate goal of wireless networks is to integrate with major operators, which is more likely to breakthrough. The ultimate goal for energy networks is the Virtual Power Plant (VPP). Currently, projects are exploring various aspects of VPP, and is still in its early stage.
09. Edge AI based on smartphones and PCs is the next development trend for DePIN
However, the way to sell smartphones and get user-friendly dapps will be the key.
10. DePIN is a new method for issuing RWA (Real-World Assets)
Combining DePIN with on-chain DeFi will unlock the liquidity of DePIN hardware and data. The integration of DePIN and RWA will bring the following opportunities:
Unleashing the liquidity of DePIN hardware and data.
After DePIN physical hardware is tokenized, RWA derivative projects such as income separation and mortgage lending can be realized, and DePIN income rights can be traded without physical delivery.
- DePIN’s earnings provide stablecoin with an interest-earning source.
- DePIN hardware assets can be securitized and products similar to the REITs model of traditional finance can be issued, such as packaging GPUs on the chain to create GPU Index.
Entire English version: https://docsend.com/v/x2zdt/futureofdepinen
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