Over the past year or so, tech enthusiasts across the globe have witnessed the rise of an innovative concept called decentralized physical infrastructure networks (DePIN) — with many experts hailing it as one of the most transformative technological trends of 2024.
While the core ideas permeating DePINs have existed for years, the technology has rapidly achieved a critical point of inflection in recent months, with its applications now beginning to range from 5G network delivery to the distribution of computing power to even electric vehicle charging.
This surge in interest has not gone unnoticed, as evidenced by Google Trends data, which revealed that the number of searches for the term DePIN reached an all-time high earlier this year, signaling growing mainstream awareness and adoption.
Furthermore, numerous events have continued to highlight the vulnerabilities inherent in centralized infrastructures, with the recent CrowdStrike debacle being a prime example of this. As part of the compromise, a faulty security software update triggered a global computer outage, showcasing the company’s dependency on a single point of operation.
Similarly, recurring U.S. power grid failures during natural disasters have also exposed the fragility of centralized energy systems, leaving millions without essential services and exposing the need for more resilient, distributed alternatives.
In this context, the promise of DePIN lies in its ability to democratize infrastructure ownership and operation while enhancing system resilience. Electric vehicle charging infrastructures, for instance, are already benefitting from such setups, helmed by projects like Minima and PowerPod — with the former also actively exploring the deployment of lightweight blockchain solutions transforming smartphones into full nodes.
VCs Are Fueling DePIN Innovation
Over the course of 2023 and 2024 alone, the DePIN sector has attracted significant attention from major investors. Most recently, prominent venture capital firm Borderless Capital announced the launch of a $100 million DePIN-centric fund backed by industry heavyweights like Peaq, Solana Foundation, Jump Capital, and IoTeX.
The investment aligned perfectly with a Messari report placing the near-term valuation of the DePIN market at $2.2 trillion — with their projections suggesting sustained growth to $3.5 trillion by 2028. Moreover, experts believe that the fact that major DePIN projects have already been able to accrue over $1 billion collectively shows that this yet nascent industry is rapidly gaining mainstream traction.
At the forefront of this change is Network3, an ambitious project bridging the world of AI with DePIN seamlessly. To elaborate, it aims to build a decentralized tech infrastructure supporting global AI developers in conducting large-scale inference, training, and model verification efficiently and economically.
The project’s growing market dominance is exhibited by the fact that its global node network has expanded to over 389,000 nodes spread across 188 countries and regions, including a strong presence in Europe, North America, and Southeast Asia.
Not only that, having secured $5.5 million in pre-seed and seed rounds, Network3 is already in the process of confirming its next financing phase, with several leading institutions having already confirmed their participation. Lastly, the firm’s recent launch of its N3 Edge V1 mining machines marks another significant development in the DePIN landscape.
With nearly 5,000 operational units, these devices represent a bridging of the global DePIN & AI landscapes. The machines feature dual mining incentives for N3 and IOTX device verification modules, with an estimated payback period of 120 days — thereby placing them among the top three performing DePIN projects in the world today.
In addition to Network3, U2U Network has also gained some traction. Its modular layer-1 leverages directed acyclic graph (DAG) technology and subnet architecture to enhance DePIN applications. Additionally, the platform’s flagship product, U2DPN, has managed to accrue over 40,000 GB of bandwidth while connecting nearly 60,000 nodes across 100+ countries.
Decentralization as a Key Technological Driver for Future Innovations
From the outside looking in, the fundamental appeal of DePIN technology stems from its ability to decentralize the sharing of physical assets, effectively eliminating traditional intermediaries like Uber and Airbnb. Through the integration of blockchain and Web3 technologies, DePIN facilitates direct peer-to-peer (P2P) exchanges of resources, creating a more efficient and equitable system.
Looking ahead, the principles of decentralization embodied by DePIN projects will become more crucial than ever. With continued technological advancement and growing investment interest, this burgeoning realm stands poised to reshape how critical infrastructures can be built and maintained in a non-local, distributed fashion. Interesting times ahead!
Jordan French is the Founder and Executive Editor of Grit Daily Group , encompassing Financial Tech Times, Smartech Daily, Transit Tomorrow, BlockTelegraph, Meditech Today, High Net Worth magazine, Luxury Miami magazine, CEO Official magazine, Luxury LA magazine, and flagship outlet, Grit Daily. The champion of live journalism, Grit Daily’s team hails from ABC, CBS, CNN, Entrepreneur, Fast Company, Forbes, Fox, PopSugar, SF Chronicle, VentureBeat, Verge, Vice, and Vox. An award-winning journalist, he was on the editorial staff at TheStreet.com and a Fast 50 and Inc. 500-ranked entrepreneur with one sale. Formerly an engineer and intellectual-property attorney, his third company, BeeHex, rose to fame for its “3D printed pizza for astronauts” and is now a military contractor. A prolific investor, he’s invested in 50+ early stage startups with 10+ exits through 2023.