原文标题：The Consumer Side of DePin: Opportunities, Challenges, and Emerging Trends
原文作者：HASHKEY CAPITAL
原文来源：hashkey.capital
编译：火星财经，Daisy
Key takeaways:
- To date, DePIN has over 1000 projects across various verticals and is a fundamental part of the crypto industry, generating over $14 million in ARR.
- Through the use of blockchain technology and innovative tokenomics, DePIN has demonstrated its courage in effectively channeling capital and enabling more equitable access to infrastructure networks.
- Still, a lack of retail awareness, regulatory uncertainty, and an increasing focus on user experience rather than cost are some of the obstacles that the industry needs to address as it scales up.
- DePIN is also facing multiple tailwinds, such as growing demand from low- and middle-income economies, improved onboarding processes, and industry-wide growth in artificial intelligence (AI) and the Internet of Things (IoT).
introduce
DePIN stands for Decentralized Physical Infrastructure Network and is a fundamental part of cryptocurrency. Although DePIN had a total market capitalization of approximately $56 billion as of July 3, the industry is still seeking to effectively address the challenges facing the current multi-trillion-dollar Web2 infrastructure network. Leveraging the innovative use of blockchain technology and tokenomics, emerging DePIN projects have the potential to disrupt existing players in various fields such as IoT, artificial intelligence, wireless coverage, energy, data, and more. Currently, there are more than 1,000 DePIN projects that generate approximately $14 million in recurring revenue (ARR) annually.
In order to achieve widespread adoption, consumer DePIN must activate the positive flywheel effect that is critical to its adoption. Consumer DePIN is defined as a decentralized network that provides physical or virtual resources by attracting retail users on the supply side and/or demand side. This report aims to provide a comprehensive overview of the future of DePIN, highlighting several notable consumer DePIN projects that have made significant progress in adoption. Finally, we'll share some of the challenges and opportunities in consumer DePIN.
An overview of the consumer DePIN landscape
As one of the most enduring use cases for blockchain technology that is closely intertwined with the real world, the consumer DePIN landscape has evolved into a diverse ecosystem where all participants have a key role to play in shaping its future. By leveraging various DePIN infrastructure modules such as blockchain networks, developers can now easily create applications that directly benefit consumers. Consumer DePIN can be broadly divided into five main categories: computing, wireless, bandwidth, energy, and sensors. This categorization highlights the broad potential of consumer DePIN to revolutionize and benefit from the way everyday users interact with decentralized technologies and bring tangible improvements to their daily lives.
来源：HashKey Capital
DePIN Project Highlights
In this section, we highlight projects that have shown significant growth in various categories and have played a significant role in the adoption of DePIN. *The list of items listed here is not exhaustive.
Computing networks
Off-chain computing networks allow anyone to monetize computing resources (GPUs, CPUs, FPGAs, etc.) hosted in the cloud or owned by community members. This insatiable demand for computing resources is partly attributed to one area of significant growth in the field of artificial intelligence, namely generative AI. According to Statista, the global market size for generative AI is expected to exceed $200 billion by 2030, growing at a CAGR of 20.7%. By aggregating and optimizing unused computing resources, decentralized computing networks help reduce costs and barriers to entry for small AI labs. Examples of projects in the compute category include: Aethir, Compute Labs, Render, io.net, and so on.
Aethir
Aethir is the GPU-as-a-service platform for the DePIN computing division. Its platform addresses the growing demand for computing resources for artificial intelligence, cloud gaming, and virtualized computing. Aethir allows GPU providers to unlock the revenue potential of underutilized GPU chips and allow end users to benefit from high-quality, cost-effective solutions. By employing a proof-of-render mechanism, Aethir ensures that rendering tasks are completed correctly before rewards are distributed. This is implemented by the Inspector node. The checker ensures that every task has been completed and meets specifications and standards, contributing to trust and security across the network.
Key statistics for Checker Nodes sales
The total number of reviewer nodes sold is 74,673
Node Operators 20,584
来源:Dune Analytics,数据截至 July 2, 2024
Computing Labs
Compute Labs is an AI-Fi platform that sits at the intersection of AI computing supply and financial derivatives that aims to democratize investment opportunities into valuable GPU resources through fractional ownership in the form of NFT issuance, known as GNFT. Investors who hold these GNFTs can directly receive the benefits of computing resources. Compute Labs manages all aspects of its T3 Internet data center operations, ensuring optimal performance and security. It also rents out computing resources to various end-users, such as centralized and decentralized entities.
Render Network
Render is a decentralized GPU marketplace that connects artists with GPU computing providers built on the Solana network. Node operators with unused GPU computing can contribute their resources and earn $RNDR by processing the rendering needs of artists. With the Render network, 3D renderings can be completed in less time and at a lower cost than centralized services. Render also uses a combination of end-to-end encryption, hashing, virtualization, and secure centralized storage to ensure privacy and security. Since its inception, the platform has had 5,600 node operators rendering more than 34.7 million frames.
io.net
io.net is a distributed GPU marketplace that provides access to GPU resources without expensive hardware requirements and infrastructure management. IO.net Obtain computing resources from providers such as data miners, crypto miners, individuals, etc., and make them available to machine learning engineers. Its core product, IO Cloud, consists of a distributed GPU/CPU network capable of executing Python-based ML code for AI projects. The platform offers 4 core services: batch inference and model services, parallel training, parallel hyperparameter tuning, and reinforcement learning. To verify that the GPU resource has been provided, IO.net runs on the basis of a timelock attestation mechanism. This mechanism ensures that the rented equipment is fully used for the task at hand for the entire period and is not used by other services or applications.
Key stats
Total verified GPUs 255,206
Total verified CPU 61,484
Total compute hours 925,475
Total network revenue of $1,094,009
Gross worker income is $1,038,942
Source: io.net, data as of July 3, 2024
Comparison of AI computing networks
来源:Render Foundation、io.net、Aethir,数据截至 July 3, 2024
Blockchain network
Starting a DePIN project from scratch is often not easy, as developers need to allocate resources to build a variety of modular infrastructure. To help developers allocate resources more efficiently, several DePIN native blockchains have emerged that offer a variety of modular tools that simplify the process of developing DePIN projects. Two notable DePIN-specific blockchains are Peaq and IoTeX.
IoTeX
Peaq is an L1 blockchain designed specifically for DePIN applications, promising high throughput of up to 10,000 TPS and low transaction costs. Peaq enables seamless interaction with Polkadot, cross-chain machine IDs with Cosmos, Solana, BNB, and back-to-Ethereum bridges. As the hub of many high-volume DePIN applications, the security of the network is paramount. Peaq's Nakamoto coefficient has exceeded 90, which is a testament to the importance that the network places on security. Peaq also simplifies the development of DePIN projects with modular blockchain capabilities. Popular projects built on the network include Silencio, NATIX, ELOOP, Penomo, and others.
来源：HashKey Capital
Internet of Things
IoTeX is a Layer 1, EVM-compatible, high-performance DePIN blockchain that integrates and coordinates key software and hardware building blocks in DePIN to connect the digital and physical worlds. Recently, the IoTeX team announced IoTeX 2.0, a guideline for IoTeX to become an inclusive and open DePIN infrastructure. The IoTeX 2.0 architecture is underpinned by several new/improved features, such as improved tokenomics, modular security pools, W3bstream, ioDDK, ioConnect, and ioID. By offering a variety of self-developed/third-party infrastructure modules that can be customized for different phases and project requirements, developers are able to seamlessly deploy DePIN projects on IoTeX.
IoTeX 2.0 架构。
Source: IoTeX White Paper 2.0
Peaq vs. IoTeX
来源:Peaq、Chainspect、IoTeX,数据截至 July 3, 2024
Connect to the Internet wirelessly
Decentralized connectivity networks allow users to provide and access wireless network services without relying on centralized telecom operators. The key catalysts for the overall growth of the DeWi space are advancements in wireless technologies such as 5G, widespread adoption of IoT devices, and the cost-effectiveness of DeWi solutions. With global internet penetration set to reach 67% by 2024, decentralized wireless providers strive to fill this gap by offering low-cost, secure alternatives. Examples of projects that operate decentralized wireless networks include: Helium, Nodle, XNET, WiFi Dabba, Wicrypt, WiFi Map, and others.
Helium
Helium is a decentralized wireless network built on top of the Solana blockchain. As the largest decentralized wireless network, its utility is critical to driving the IoT economy in areas such as smart agriculture, smart water monitoring, smart cities, environmental monitoring, logistics, and supply chains. The Helium network is powered by two key sub-networks: Helium IoT and Helium Mobile.
The Helium IoT hotspot collects data from IoT devices and forwards it to the Helium LoRaWAN web server. Subsequently, this data is transmitted to a specific device application server. Mobile operator Helium Mobile, created by Nova Labs, aims to provide cost-effective 5G networks to users around the world through a dynamic coverage model.
Key IoT statistics
来源:Dune Analytics、Helium explorer,数据截至 July 3, 2024
Nodle
Nodle is a decentralized wireless network built on zkSync. As a smartphone-based network, the Nodle app uses Bluetooth Low Energy (BLE) to provide connectivity to BLE-enabled things and power critical applications used to verify media content, locate assets, or prove location. Nodle has released a range of authentication tools, such as the ContentSign SDK, ConnectX, Nodle SDK, Nodle Hotspot, Click App, and Nodle App. Users who run the mobile app by turning on Bluetooth and location data will receive a portion of the $NODL rewards. A Nodle consumer is a person or entity that pays a fee to interact with the web in exchange for a service, such as data insights or proximity connections.
Key stats
来源:Nodle explorer,数据截至 July 3, 2024
Bandwidth Network
Bandwidth networks are projects that focus on allocating and efficiently utilizing the data capacity of the internet to meet a variety of use cases, such as web scraping, streaming, online gaming, and content delivery networks. Examples of projects include Grass Network, Meson, Sentinel, Livepeer, and more.
Grass Network
Grass is an aggregation of L2 data on Solana that enables users to sell idle internet bandwidth in their devices and earn rewards for contributing to the development of better AI models. Whenever a Grass node scrapes data from the network, it returns an encrypted response for all the data requested by the client. This data is used for AI training or inference and has a validated lineage that can be traced back to the Grass node that provided the data. This establishes a fairer and more equitable distribution of rewards, putting power back in the hands of contributors.
Sensor networks
The IoT market is expected to achieve a global revenue of $947.5 billion in 2024, growing at a CAGR of 10.4% from 2024 to 2029. Driving this growth is the rapid demand for IoT sensors in the industrial, consumer, and automotive industries to extract data-driven, actionable insights. Examples of projects in sensor networks include Hivemapper, Dimo, WeatherXM, Geodnet, NATIX, Silencio, and more.
Hivemapper
Launched in November 2022, Hivemapper is a decentralized street-level mapping and imaging network built on top of the Solana network. Drivers can purchase Hivemapper's dashcam Bee to collect high-quality street-level imagery while earning rewards in the form of HONEY. In addition to Bee's hardware components, it also has a Map AI software component that can accurately detect, classify, and locate objects within 50 centimeters. Alternatively, participants can play the AI Trainer game on mobile or desktop to fine-tune the map and improve the machine learning model. HONEY tokens are burned to access map data, which is used to support the products and services of businesses and developers, ensuring a positive flywheel relationship between map consumers and map contributors. To date, it has achieved several milestones, such as mapping 21% of the world in 19 months.
Key stats
来源:Hivemapper explorer,数据截至 June 30, 2024
DIMO
Dimo is a decentralized automotive platform based on the Polygon blockchain. On the Dimo network, drivers can use Dimo hardware to connect their cars to unlock $DIMO rewards, thereby contributing vehicle data to the network. This data is used by data subscribers, such as app developers, who must pay $DIMO to take advantage of driver data.
Key stats
来源:Dune Analytics,数据截至 July 1, 2024
Weather XM
WeatherXM is an Arbitrum-based community-driven weather network that rewards users for providing hyper-native weather data to web2 businesses and on-chain smart contracts. Its core product is weather station hardware that collects hyperlocal environmental data, generates cryptographic proofs of the collected data, and stores the data on Filecoin, a decentralized storage platform. Users who deploy weather stations and contribute to the network are able to earn $WXM of their native governance and utility tokens.
Key stats
来源:Weatherxm explorer,数据截至 2024 年 7 月 1 日
Geodnet
Geodnet is a network that uses cryptocurrencies to guide a network of Global Navigation Satellite System (GNSS) reference stations to improve the accuracy of location data. GEODNNET USES INNOVATIVE ROOFTOP SPACE WEATHER STATIONS AND BLOCKCHAIN TECHNOLOGY TO COLLECT REAL-TIME GEOSPATIAL DATA, CREATING A SECURE AND RESILIENT NETWORK. The network provides reliable data for industries such as agriculture, transportation, finance, autonomy, AR/VR, and the metaverse. Compared to standard GPS, which typically has an error of about two meters, Geodnet is able to provide an accuracy of within 1 - 2 centimeters and repositions every second. Its customers come from different industries such as agriculture, drones, construction, and the Internet of Things, which have come to rely on real-time kinematics (RTK) instead of GPS.
Key stats
来源:Geodnet explorer,数据截至 2024 年 7 月 8 日
Comparison of sensor networks
Consumer Wearables
Driving the growing adoption of the Internet of Things is a specific area known as consumer wearables. Consumer wearables refer to accessories/gadgets worn by retail consumers on a daily basis that, when they are integrated into the web3 ecosystem, can create monetary opportunities for users to pass their personal data. Some of the projects operating in this field include GM Network, Cudis, WatchX, and others.
GM Network
GM Network is the first consumer-grade AIOT network that supports the development of artificial intelligence and the Internet of Things. GM Network is built on top of Eigenlayer's re-staking rollup, powered by Altlayer, and supported by 3 core layers, namely: asset layer, data layer, and user layer. The asset layer GM Network is a layer 2 rollup on Eigenlayer. The data layer consists of modular components such as GM ID and GM OS. The user layer is made up of dApps, such as consumer-centric AI applications that leverage datasets from consumer-grade wearables. To facilitate the development of IoT devices on its platform, GM Network's incubator, GM Studio, provides technical expertise and support for AI-powered consumer-grade IoT products. GM Studio's first product, Yozoo, is a smart wearable device that combines artificial intelligence and health to provide personalized, science-based health management.
Cudis
Cudis is a consumer health, AI-enabled ring on the Solana network. It comes with an app with an AI trainer powered by chatGPT that provides tailored recommendations based on biometric data collected from the ring. Users can also interact with the app through various areas such as emotional, mental, physical, etc., to earn rewards.
Consumer DePIN Hardware Partners
Seeed Studio
Seeed Studio is an Internet of Things technology company specializing in the research, production, and sales of hardware for edge computing, network communications, and smart sensing applications. Seeed Studio has partnered with several DePIN projects, including Helium Network, to drive digital transformation. Through its platform offerings, Seeed Studio has reached more than 100 countries and has more than 200,000 end users.
RAKwireless
RAKwireless is an IoT technology company that manufactures and deploys IoT solutions using its deep expertise in GPS, LoRa, LPWAN, LoraWAN, and cellular technologies. RAKwireless provides end-to-end solutions that enable seamless IoT deployment with products, software, and services for IoT developers and IoT deployers.
Challenges and opportunities
challenge
- Due to the proliferation of projects competing in the same vertical, as well as competition from existing Web2 peers, DePIN projects are struggling to sustain demand, which may dilute the market share of otherwise smaller DePIN projects. Therefore, it will be beneficial to diversify projects and create different demand channels beyond Web3. The DePIN industry is still in its infancy, so it can be difficult to get demand from retail consumers and Web2 businesses due to their lack of awareness and trust in the industry's reliability.
- One of DePIN's core value propositions is the ability to reduce industry monopolies and thus achieve price competitiveness. However, this can be a double-edged sword, as stiff competition for fees often leads to lower conversion costs and retention rates. Eliminating exorbitant fees also shifts the focus to user experience, a key differentiator between projects.
- DePIN projects are challenged by upfront capital costs and supply chain issues that can prevent it from quickly reaching the threshold size needed to effectively serve the market.
- Regulatory hurdles. This helps projects understand the regulatory environment, especially for sensitive industries such as telecommunications and cloud services.
Opportunity
- Low- and middle-income countries are the main catalysts for DePIN growth due to the growing demand for price-competitive solutions and equitable access to critical infrastructure needs.
- Easy deployment through node sales is one of the most popular onboarding mechanisms out there, and it also allows users to quickly participate in the ecosystem and lock in the long-term community of the project, while raising additional funds for the project's growth.
- Some fields, such as artificial intelligence, are seeing greater growth due to the increased demand for large language model computation. Using blockchain to unify idle resources can enable efficient utilization and monetization of resources while addressing potential supply-demand mismatches.
- According to Statista's report, IoT is expected to surpass $945 billion by the end of this year, growing at a CAGR of 10.5% from 2024 to 2029. DePIN has the potential to take a portion of market share from traditional players by creating a strong user-owned economy, where privacy and data control are in the hands of users.