AI+DePIN is on the Rise, Analyze the Latest Trends and Opportunities

2024-03-13, 07:28

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![](https://gimg2.gateimg.com/image/article/1692587449analysis.jpeg)
## [TL；DR]: 
DePIN represents decentralized physical infrastructure, providing computing power and data support for distributed data networks. The development of AI relies on algorithms, computing power, and data, while DePIN provides massive computing power and data to support large-scale model training.

Driven by AI technology, the DePIN track is reshaping the business model of data circulation, bringing closer and more efficient connections to industrial collaboration.

Some new AI-based DePIN projects, such as IO.net, Gensyn, Aethir, etc., are becoming increasingly popular and worth paying attention to.

## Introduction
This bull market has given birth to new tracks such as AI, DePIN, In_script_ion, Rollup, and RWA, and the recent addition of the two concepts of AI+DePIN has sparked widespread discussion.

Some even suggest that this emerging concept may become a new engine for the Web3 bull market, driving further development. This article will further explore this topic and analyze its development prospects and investment opportunities.
 
## How to Combine AI and DePIN?
DePIN means decentralized physical infrastructure, which is not an entirely new concept.

As is well known, the operation of traditional physical infrastructure networks such as CePin servers, sensors, and communication networks heavily relies on centralized computing power cluster services such as AWS and Alibaba Cloud, which means a high economic burden and a lack of data sovereignty for many small and medium-sized enterprises.

DePIN, on the other hand, uses a blockchain token incentive mechanism to attract users with hardware devices to participate and jointly build a large-scale physical device collaboration network, thereby forming a powerful infrastructure network.

Compared to others, this innovative model enables small and medium-sized enterprises to access and utilize network resources in a permissionless, low-cost, and efficient manner while also gaining independent data ownership.

Recently, hardware mining tokens such as FileCoin, <a href="/ru/price/arweave-ar" target="_blank" class="blog_inner_link">Arweave</a>, Storj, Arkash, and others have seen a significant price increase during the previous bull market, thanks to the market's recent enthusiasm and attention to this track. Of course, this is not just speculation about old themes. On the contrary, a notable feature of DePIN in this bull market is its integration of AI elements.
 ![](https://gimg2.gateimg.com/image/article/17103146951.jpg)
Source: Messari
 
Although decentralized storage does have market demand, it is not a rigid demand and is often mixed with some pseudo demand. For example, although data storage access technology can solve storage problems, due to the instability of network distribution and fluctuations in node efficiency, some application scenarios that require high real-time performance, such as online videos, games, etc., are difficult to achieve widespread application.

With the introduction of AI scenarios, especially the rise of the rigid demand for large AI model training, the potential of DePIN will be further unleashed.

By utilizing DePIN to integrate supply chain cloud services such as GPUs or mobilize hardware devices across the entire network, we can build a more powerful infrastructure network to meet the strong needs of large model training, distributed machine learning, data storage verification mining, prototype graph rendering, and other directions.
 
## The Newly Emerging AI+DePIN Project
In addition to the recent rebirth of traditional projects, such as <a href="/ru/price/render-rndr" target="_blank" class="blog_inner_link">Render</a>, <a href="/ru/price/helium-hnt" target="_blank" class="blog_inner_link">Helium</a>, Akash, and <a href="/ru/price/iotex-iotx" target="_blank" class="blog_inner_link">IoTeX</a>, some new AI-based DePIN projects are becoming increasingly popular. Here are some examples to illustrate.
### IO.NET: Nearly 100% GPU Growth in 10 Days
The IO.NET project is an innovative cloud computing project that integrates current popular technology fields - AI, DeFi, and <a href="/ru/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> blockchain. Recently, it completed a $30 million A round of financing led by Hack VC.
![](https://gimg2.gateimg.com/image/article/17103147322.jpg)
Source: IO.NET
 
The project aims to address the issue of GPU resource coordination by building a decentralized physical infrastructure network to effectively integrate underutilized GPU resources worldwide, providing engineers with powerful and cost-effective computing power.

Regarding technical support, it aggregates various underutilized resources, such as independent data centers, crypto miners, and crypto projects such as <a href="/ru/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> and Renders. Taking IO.NET's ignition program as an example, the number of GPU miners increased from 26,000 to over 51,000 within 10 days, forming one of the largest GPU clusters in the world. These resources, combined with DePIN, provide engineers with an accessible, customizable, cost-effective, and easy-to-implement computing system while saving 90% of computing costs.
### Gensyn: A Deep Learning Computing Protocol Based on Polkadot
Gensyn is a decentralized computing network based on <a href="/ru/price/polkadot-dot" target="_blank" class="blog_inner_link">Polkadot</a>, focusing on training AI models. Since its establishment in 2020, Gensyn has completed a Series A financing of $50.6 million, with a16z as the lead investor.
 ![](https://gimg2.gateimg.com/image/article/17103147583.jpg)
Source: Gensyn
 
Regarding operational mechanisms, Gensyn utilizes metadata from gradient-based optimization processes to construct work certificates, ensuring consistent work execution through multi-granularity, graphical precision protocols, and cross-evaluators. This allows for the re-execution of verification work and comparison of the consistency of results, ultimately confirmed by the blockchain itself, to ensure the validity of the computation. In addition, Gensyn introduces a staking mechanism to improve the reliability of work verification further.

Specifically, Gensyn's system includes four key participants: submitters, solvers, validators, and whistleblowers. To ensure the fairness and security of the system, the solver needs to conduct the staking. If the whistleblower discovers that the solver has engaged in improper behavior, they can initiate a challenge. Once the challenge is successful, the token staked by the solver will be confiscated, and the whistleblower will receive a reward.
### Aethir: Real Time Rendering Protocol Based on Arbitrum
Aethir is a company that focuses on building decentralized real-time rendering networks, aiming to unlock content accessibility in the metaverse. Recently, it has received over $32 million in financing, with a valuation of $150 million.
 ![](https://gimg2.gateimg.com/image/article/17103147894.jpg)
Source: Aethir
 
Aethir can help gaming and artificial intelligence companies deliver their products directly to consumers by building scalable and secure decentralized cloud infrastructure (DCI), overcoming hardware and geographical limitations, and thus addressing market fragmentation issues.

This innovation not only benefits game players and publishers but also provides new opportunities for rendering node operators.

In addition, Aethir has also joined the NVIDIA launch program, marking further recognition and support for its leading position in cloud gaming and real-time rendering.
 
## Outlook on the Development of AI+DePIN Track
Based on the previous text, it is not difficult to find that the AI+DePIN track project has the following advantages.

Decentralized features: The core advantage of the DePIN track lies in its decentralized nature. This means that the entire platform does not rely on any central agency or single entity for control and management, greatly improving the security and reliability of data.

High transparency: Due to all operations being performed on the blockchain, the DePIN track provides extremely high transparency. Users can track the source, <a href="/ru/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a>, and usage of data, effectively preventing data from being tampered with or abused.

Data sharing and collaboration: The AI+DePIN track promotes data sharing and collaboration between different entities. Through technologies such as smart contracts, data can be efficiently and conveniently shared while ensuring privacy and security, promoting the development of data-driven businesses.

Cost reduction: Through decentralized data exchange and sharing, the AI+DePIN track helps to reduce the cost of data acquisition and use. This project revenue, which is different from other crypto protocols, will be resilient, and this practicality will greatly enrich the practical applications of crypto technology.

Of course, as this new track has not yet been widely popularized, it still faces some display obstacles, as shown below:

Insufficient technological maturity: Currently, the AI technology that DePIN relies on is not fully mature.

There are still certain limitations regarding performance, scalability, etc., which may not meet the needs of large-scale, high-concurrency, and intelligent data exchange.

Privacy protection challenge: Although the AI+DePIN track has advantages in data sharing and storage, how to effectively utilize data while protecting personal privacy remains an urgent issue to be solved. Ensuring the anonymity and security of data technically remains an important challenge currently faced.

Legal and regulatory barriers: Currently, the laws and regulations regarding decentralized applications, such as the AI+DePIN track, are not yet perfect, and the lack of review and licensing will undoubtedly lead to some legal risks and compliance issues in practical applications.

From a long-term perspective, DePIN represents decentralized physical infrastructure, providing computing power and data support for distributed data networks. The development of AI relies on algorithms, computing power, and data, while DePIN provides massive computing power and data to support large-scale model training. Moving from virtual to real will reshape the supply chain structure and is expected to bear the huge demand of the future $80 trillion market, thus opening up a new cycle of value creation and economic growth.
 ![](https://gimg2.gateimg.com/image/article/17103148485.jpg)
Source: Kathy Wood
 
From the investors' perspective, AI+DePIN will also become a new narrative speculation opportunity for the current bull market to <a href="/ru/price/link-ln" target="_blank" class="blog_inner_link">LINK</a> internal and external funds effectively, and is expected to become the driving engine of this bull market. We will continue to pay attention to the potential trend opportunities brought by AI+DePIN.

<div class="blog-details-info">
<div>Author:**Carl Y.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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