Welcome to another episode of Gio Explains, where we dive deep into the latest industry trends and concepts. In today’s video, we’re going to explore the world of Decentralised Physical Infrastructure Networks, also known as DePins.
This rapidly growing industry has caught the attention of many, and we’re here to explore its potential and the exciting projects that are emerging. So sit back, relax, and join us on this journey into the future.
Decentralising Infrastructure for Personal Use
What exactly is a Decentralised Physical Infrastructure Network? At its core, it is an innovative attempt to decentralise physical infrastructure and make it accessible for personal use. Think of your computer, internet, storage, or any other resources that are under-utilised.
With DePins, you can now offer these resources to others who need them at a lower cost. Imagine renting out your unused storage space to someone in need, charging them a fraction of what centralised providers offer. It’s an opportunity to monetise your idle infrastructure and benefit others in the process.
The Flywheel Concept
The DePin ecosystem operates on a flywheel concept, where various agents interact and benefit from this decentralised network. You have the DePin apps, the end-users who require the resources, the protocol founders, the token investors, the service providers (miners), and the third-party developers.
Each participant plays a vital role in creating a self-sustaining and mutually beneficial ecosystem. By leveraging idle resources, the DePin network aims to disrupt traditional centralised providers and provide cost-effective solutions to users.
Thriving Sectors and Market Trends
Several sectors within DePins have gained significant traction, including compute, storage, data, network, wireless, and sensors. These sectors have experienced a surge in interest, with market cap returns showing significant growth.
Earlier this year, the market cap change was negative, but recent data shows a positive trend, indicating a rising demand for these decentralised services.
Established projects like Helium, while initially facing challenges, are paving the way for new protocols with innovative solutions that have the potential to reshape the industry.
Key Players and Protocols
The DePin landscape is filled with various players and protocols, each offering unique solutions. Storage networks like Filecoin and compute networks, including Akash, are just a few examples. These protocols are attracting attention and bringing about new opportunities for early adopters.
Whether it’s healthcare, energy, or smart home applications, there is no shortage of protocols to explore and potentially invest in. The DePin industry is ripe with potential, and there are plenty of untapped opportunities waiting to be discovered.
Unveiling the Cost Advantage
One of the most compelling aspects of the DePin ecosystem is its cost advantage over centralided providers. Messari Research conducted a study comparing the costs of DePin infrastructure protocols to traditional providers. The results were astonishing. For example, in terms of storage, the cost difference between Amazon and DePin providers was significant, with DePin providers offering notably lower prices.
The same applies to compute services, where Akash provides a much cheaper alternative compared to giants like Amazon and Google. The cost advantage of DePin infrastructure provides a clear value proposition for users and product builders alike.
Real-World Use Cases
Some projects within the DePin space have already gained traction and are showcasing the potential of this decentralised network.
Bitcoin, for instance, focuses on storage, allowing clients to make deals with providers who offer their resources. The proof of replication ensures that the providers maintain the data’s integrity, ensuring secure and reliable storage. The Graph is another well-known example, providing developers with essential data directly from the Ethereum blockchain, simplifying the process of obtaining necessary information.
The DePin industry holds immense promise, allowing individuals to unlock the hidden potential of their idle resources while providing cost-effective solutions to users. Whether you’re interested in investing, learning more about specific protocols, or exploring your own infrastructure’s possibilities, the DePin space offers a wealth of opportunities.
Join the DePin revolution, and let’s navigate the future together.