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How DePINs Can Disrupt Tech Monopolies and Put People Back in Control Chris Were
Apr 05, 2024
Decentralized Infrastructure Physical Networks — DePINs — have the potential to transform how we access and use real-world services. Potential use cases are only restricted by your imagination. What if… Internet hotspots could be established in rural areas where there is little coverage? Homeowners could be rewarded by selling excess solar energy back to the grid? Consumers could share unused storage space on their devices with others? Entrepreneurs could unlock peer-to-peer microloans to build local projects? Underpinned by blockchain technology, DePINs make all of this possible — at a time when the infrastructure powering the global economy is experiencing seismic change. Figures from Statista suggest 33.8% of the world's population don't use the internet, with people in low-income countries most likely to be shut out of the modern information society. The International Energy Agency estimates that 100 million households will depend on rooftop solar panels by 2030, and enhancing economic incentives will be a crucial catalyst for adoption. And let's not forget that the rise of artificial intelligence means the need for storage and computation is booming, with McKinsey projecting demand for data centers will rise 10% a year between now and the end of the decade. DePINs have the power to cultivate a cloud storage network that's much cheaper than traditional players including Google (NASDAQ: GOOG) and Amazon (NASDAQ: AMZN). DePINs mount a competitive challenge to the centralized providers who dominate the business landscape. Right now, most of the infrastructure we use every day is controlled by huge companies or governments. This creates a real risk of monopolies where a lack of choice pushes up prices for consumers and businesses — with the pursuit of profits stymying innovation and shutting out customers based on geography and income. Blockchains are at the beating heart of these decentralized networks. That's because individuals and businesses who contribute physical infrastructure can be rewarded in crypto tokens that are automatically paid out through smart contracts. Consumers can also use digital assets to unlock services on demand. This approach isn't about modernizing access to ...Full story available on Benzinga.com
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