1. The internal logic and investment value of the DePIN+ track
Although the Web3 world is becoming more aware of DePIN, the web2 world is still confused about the concept, importance, and core value of DePIN. What exactly is DePIN? Why is DePIN important? What is the core value of DePIN?
DePIN, or decentralized physical infrastructure network, provides a decentralized approach to building and managing IoT networks by combining real-world sensors, artificial intelligence, and blockchain technology. The core logic of DePIN goes beyond the simple device mining model, and its essence is the decentralized aggregation process of public resources. The aggregation process is essentially a "+" process, so the relevant industry application direction is very important.
Generally speaking, users gain economic rewards by contributing idle device resources (such as bandwidth, computing power, etc.), transferring data ownership, and providing support for other data needs. Through incentive mechanisms, DePIN allows anyone to contribute to infrastructure and receive rewards, reducing dependence on centralized entities and promoting a fairer distribution of benefits.
Next, we will analyze the DePIN applications in various popular directions to better understand the reasons for the rapid growth of these tracks and possible opportunities in the future, but always DYOR.
(Source: Messari)
2. DePIN+AI, its role in data collection and training
According to Grand View Research, the global AI market is expected to reach $ 196.63 billion in 2028, with a compound annual growth rate of 40.2% (#note 1). Data is a key factor driving the development of AI. Gartner predicts that by 2025, 70% of companies will increase the productivity of data science work by using AI technology (#note 2). DePIN efficiently collects dispersed and diversified data in a decentralized manner, providing an ideal environment for AI model training.
In the field of AI, the richness and diversity of data are crucial to model performance. Taking GPT-3 as an example, it has 175 billion parameters and 45TB of training data (#note 3), demonstrating strong natural language processing capabilities. The DePIN project provides a rich source of data for AI models by integrating global IP resources. According to Statista data, as of the end of 2021, the number of active IPv4 addresses in the world was approximately 4.5 billion (#note 4). The network behavior data and user preference information contained in these IP addresses are of great value for AI model training.
The richness of Internet IP addresses directly affects the efficiency of AI in acquiring data. The DePIN project, which is rich in IP resources, enables users to bypass access restrictions and efficiently collect the required public data by providing a large number of different IP addresses. This is especially important for AI applications that rely on large-scale and diverse data for training. Blockchain technology, such as zero knowledge proof, can protect user data and is currently the best solution.
DePIN will greatly promote the development of model training and pave the way for AGI (artificial general intelligence).
3. DePIN+ Case Study: A New Narrative for Camelot Protocol
Camelot Protocol is the first Layer3 public chain dedicated to DePIN that supports multiple BTC Layer2s and is committed to building the world's largest AI computing power ecosystem for mobile devices.
Camelot uses DePIN technology to make full use of the data of enterprises and the idle computing power and bandwidth of individuals scattered on different platforms in traditional Web2 scenarios. It integrates them into a distributed computing power pool based on Layer3, providing highly flexible and customizable computing power services for mobile devices. Whether it is home or commercial broadband, or personal smartphones, computers and other devices, they can all join as contribution nodes. After providing resources, users will receive Camelot points in return. All points can be exchanged for CLOT tokens.
Camelot is closely aligned with the core concept of DePIN by guiding user hardware participation and aggregating idle IP and bandwidth resources. However, the direct connection between IP and bandwidth resources and data collection and AI training is not obvious. In fact, Camelot does not directly collect or use user data, but creates extremely favorable conditions for accessing and collecting public data by providing rich IP resources.
For example, when an e-commerce data analysis team is monitoring the prices of competing products, the anti-crawler mechanism may be triggered due to the frequent crawling of competitor website information by a single IP address in a regular network environment, resulting in data collection being blocked. However, when the team uses the services provided by Camelot, with its rich IP resources, it can flexibly switch between different IP addresses for access, effectively avoiding being identified as a robot, ensuring the smooth progress of the data crawling task, and thus timely and accurately grasping market dynamics, providing strong data support for formulating competitive strategies.
It is worth mentioning that Camelot has completed angel round financing from five institutions and several individuals led by DWF. The token has not yet been listed and is expected to be listed on the leading centralized exchange in Q2.
4. Product implementation: Bringing the DePIN+ concept into real life
One of DePIN’s main application scenarios is AI and edge computing. There are many very interesting cases being explored by DePIN entrepreneurs in logistics, unmanned delivery robots, drone detection, and permission management.
Another major area that is rapidly emerging in DePIN is healthcare and wearable device related technologies.
The form factor of wearable devices has been greatly improved and is now more comfortable to wear. We now have very private, compliant and high-performance off-chain data storage solutions for medical data. Therefore, we expect a large number of health devices such as smart rings, patches, necklaces, wristbands, mattresses, etc. to emerge.
As a new force in the DePIN track, Camelot Protocol has been committed to deeply integrating the concept of decentralization with physical infrastructure to build an efficient, secure and user-friendly distributed network. According to Odaily, Camelot has joined hands with ZOBO, the largest smart wearable brand in Vietnam, to jointly launch the first smartwatch that supports the DePIN ecosystem, successfully pushing DePIN from the conceptual stage to the actual product level, bringing users a new data value sharing experience.
This smartwatch jointly created by Camelot and ZOBO not only has the functions of a smartwatch, such as health monitoring, message reminders, sports tracking, etc., but also innovatively integrates the support of the DePIN ecosystem. After wearing and activating the watch, users can safely and transparently contribute personal data such as steps, heart rate, and geographic location to the DePIN network through the built-in sensors and network modules of the watch. In return, users will have the opportunity to receive airdrop rewards provided by the Camelot ecosystem to realize the direct value of personal data.
This cooperation marks the first successful application of DePIN technology on consumer-grade smart wearable devices, successfully realizing the productization of the DePIN+ concept, and bringing the decentralized physical infrastructure network from theory to reality. With the development of more similar cooperation, DePIN is expected to play a more important role in the future digital society, reconstruct the data value distribution pattern, promote the return of data ownership to individuals, and usher in a new era of data sharing and value exchange.
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Conclusion:
Under the wave of anti-globalization, traditional manufacturing has been hit hard. More and more international cooperation is struggling under the influence of centralized supervision. DePIN is not only highly scalable and has aggregation methods for various industries, but also builds a bridge between Web3 and Web2. In the context of Web2.5, DePIN is the + sign that connects everything.
So, DePIN+ represents a paradigm shift in the way we think about and deploy IoT solutions, paving the way for a more connected, smart, and sustainable future.
#Note 1:
Grand View Research. Artificial Intelligence Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Technology (Machine Learning, Natural Language Processing), By End-use, And Segment Forecasts, 2021 – 2028. Retrieved from https://www.grandviewresearch.com/industry-analysis/artificial-intelligence-ai-market
#Note 2:
Gartner. (2021). Gartner Predicts 70% of Organizations Will Increase Their Use of AI by 2025. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2021/01/21/gartner-predicts-70-of-organizations-will-increase-their-use-of-ai-by-2025
#Note 3:
OpenAI. (2020). GPT-3: Language Models are Few-Shot Learners. Retrieved from https://arxiv.org/abs/2005.14165
#Note 4:
Statista. (2022). Number of IPv4 addresses allocated globally as of December 2021. Retrieved from https://www.statista.com/statistics/263722/number-of-ipv4-addresses-allocated-globally/
