The popularity of the AI+DePIN concept is leading the industry. Can it become the engine of a new round of bull market?
Hello everyone, welcome to Websea Academy. The topic I want to introduce to you in this issue is DePIN.
With the launch of Sora, AIGC once again dominates the global venture capital technology circle, and the era of artificial intelligence seems to be close at hand. The concept of Web3+AI has also been ignited. Top investment institutions including Messari believe that Web3+AI and related DePIN will be the engine of a new round of bull market. Data released by Messari in early January this year showed that the current valuation of the DePIN market is close to US$2.2 trillion and is expected to reach US$3.5 trillion in the next four years.
So, what exactly is DePIN? What is its relationship to AI? How can investors seize the opportunities associated with it? Websea Enjoyment Academy will answer your questions.
1. What is DePIN?
DePIN is the abbreviation of “Decentralized Physical Infrastructure”. In the Web3 world, DePIN is a broad concept. It refers to users contributing data, computing power, algorithms and other software resources to the distributed data network through community and on-chain means, or purchasing corresponding network hardware facilities. To promote the development of the project ecology and obtain corresponding network rewards according to the contribution value.
In one word, the DePIN track covers a very wide range, including big data, cloud computing, artificial intelligence, Internet of Things, sensor networks, etc. We can simply understand DePIN as the decentralized ICT industry. Of course, the subdivisions of the ICT industry are very complex. As more and more developers enter the DePIN track, more corresponding decentralized CDN, database, sensor and other projects will also appear.
2. Why does DePIN have broad prospects? Will it become the engine of a new bull market?
It is easy to understand why DePIN has high hopes from global capital. Because the infrastructure and core links of the ICT network are in the hands of the monopolized global Web2 giants, they have made a lot of money.
According to Gartner, total enterprise and individual spending on cloud services has reached $490 billion in 2022, and is expected to continue to grow in the next few years, and is expected to exceed $720 billion by 2024. According to data from RightScale, 31% of large enterprises spend more than US$12 million on cloud services annually, and 54% of small and medium-sized enterprises spend more than US$1.2 million on cloud services. As enterprises increase their investment in cloud services, 60% of enterprises say their cloud costs are higher than expected.
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However, users who contributed data did not enjoy the development benefits at all. DePIN was born to reverse this extremely unfair situation. In the DePIN project, users only need to purchase hardware equipment, or share idle network resources, and invite friends to join, and then they can share the development dividends of the ecology with the project tokens they hold. This model naturally has a fission effect, and the user scale And the market value of tokens will grow exponentially.
So, will DePIN become the engine of a new bull market? We all know that the engine of the last bull market was DeFi. Its emergence allowed Web3 Finance to derive a gameplay similar to traditional finance, absorbing the influx of massive OTC funds. DePIN has similar potential. At present, the prices of DePIN assets represented by WLD and FIL continue to rise, and a number of new DePIN projects have sold out their public offering quotas before the assets are launched, which shows the popularity of DePIN. However, whether DePIN can become a bull market engine depends on its recognition by capital and its popularity and application in the market.
3. What is the relationship between DePIN and AI?
DePIN is a means to realize AI, and AI will in turn help promote DePIN. The relationship between the two is mainly as follows:
1) Improve computing efficiency: DePIN can provide more efficient and low-cost infrastructure support for AI applications. Through a decentralized physical infrastructure network, DePIN can achieve optimal allocation and utilization of computing resources, thereby reducing the computing cost of AI applications;
2) Ensure data security: DePIN adopts a decentralized design, which can effectively prevent data leaks and single points of failure. This is of great significance to many AI application scenarios that have strict requirements on data security and privacy (such as medical care, finance, etc.);
3) Support AI model training: DePIN can provide a large number of distributed computing resources and support large-scale training of AI models. At the same time, the data storage and transmission functions in DePIN can provide convenient services for the training of AI models;
4) Promote AI application innovation: The emergence of DePIN provides a new infrastructure option for AI application developers, helping to promote the innovation and development of AI applications. In addition, projects in DePIN can provide more data and scenario support for AI applications;
5) Achieve AI system optimization: Through DePIN, the AI system can use computing resources more efficiently and reduce system latency and energy consumption. This helps optimize the AI system and improve its performance in practical applications.It is worth noting that in the Web3 world, the boundary between AI and DePIN is not as clear as in the Web2 industry. In many scenarios, AI is also equivalent to DePIN, or projects with DePIN narratives can also directly use the AI concept. vice versa
4. What preparations has Websea made to welcome the DePIN wave?
As an exchange for young people around the world, Websea has unique advantages in screening assets and discovering value. New projects in the DePIN+AI track have emerged in large numbers, but the quality of the projects varies. Websea will also adopt more stringent measures in this regard. Standards are used to select high-quality ten-fold and hundred-fold projects. It should be noted that projects based on the concepts of AI + Bitcoin Ecology, AI + Inscription, AI + GameFi, Metaverse + DePIN, and DePIN + Community + Meme are more likely to be favored by capital, and Websea will also support related projects. Keep an eye on the project.
