The recent report from the crypto data and market analysis platform - Messari - has mentioned a new concept called DePAI. Previously, the market has seen many attention-grabbing concepts such as DePin, DeFAI... So what is DePAI and what is its forecast?
Here are some initial observations and expert and investor opinions on DePAI.
What is DePAI? What are the prominent DePAI projects?
DePAI stands for Decentralized Physical AI, providing an alternative path to building Physical AI, integrating the principles of Web3 and DePIN, to enable collective ownership of Physical AI and robots. Many investors simply understand DePAI = DePIN + AI. (DePIN is a decentralized physical infrastructure network).
Steven - Founder of SR Research Group - provides a more understandable explanation for investors who have already approached the DePIN concept and invested in DePIN projects.
"While previously DePIN operated by performing tasks to provide hardware and receive token rewards, now DePAI uses hardware such as robots and users use these robots/machines... to provide real-world data for various purposes and earn tokens." - Steven explained.
Messari says that the biggest opportunity for DePAI currently lies in the Data Collection Layer, where it collects unique real-world datasets to train Physical AI Agents. There are increasingly more physical AI devices being introduced into life and becoming valuable data sources. Examples include dashcam (with AI), autonomous robots...
Data sources for DePAI. Source: Messari.Currently, the DePAI landscape is still very blurry. Messari provides an initial draft of the landscape of this field with a few scarce projects. In the crypto market, FrodoBots has just raised $8 million in February. This project sells remote-controlled vehicles to collect data for AI training. Operators will receive points or tokens.
The DePAI landscape. Source: Messari."DePAI is building a system where AI-powered machines operate on an open and decentralized infrastructure. From collecting real-world data to deploying autonomous robots through DePIN, this transformation is happening right now. As Jensen Huang said: 'The robot's ChatGPT moment is about to arrive.' The key is real-world data. AI needs a massive amount of data to navigate and interact with the physical world." - Investor Sahil commented.
Dylan Bane - a researcher from Messari - has made an extremely positive prediction for DePAI.
"DePAI combined with DePIN is one of the most promising use cases of crypto. There are no big entrenched competitors like in Web2 to compete with. DePIN is the best way to deploy machines and generate revenue for robot companies that are 'burning' venture capital. The real market is worth from hundreds of billions to trillions of dollars." - Dylan Bane predicted.
It may still be too early to make further judgments on this new narrative. Previously, many narratives have emerged such as DeFAI, AI Agent... but all have become obscure before the meme coin wave. And until now, even the meme coin wave itself has caused many losses and affected investors' portfolios, so new narratives need more time to prove their potential.
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