DePIN: Paving the way for decentralized future
DePIN: Paving the way for decentralized future
The rise of DePINs is garnering attention as a promising path towards mainstream crypto adoption.
Decentralized physical infrastructure networks (DePINs) are gaining momentum as a transformative force in the Web3 space. DePINs allow individuals to contribute physical resources, such as hard drive space and bandwidth, to support a larger decentralized network, compensating contributors with cryptocurrency.
As reported by Cointelegraph, projects like XYO, which facilitates data storage in exchange for crypto, exemplify this model.
Markus Levin, co-founder of XYO, highlights the pivotal role DePINs can play in making AI systems more reliable. Levin notes that AI models often generate false information, process knowing as "hallucinating," due to untrustworthy data sources. "The problem with hallucination is the underlying data is often wrong. The AI doesn’t know which data to trust," Levin explains. By providing certainty about data origins and handling, DePINs enhance the trustworthiness of AI applications, particularly in critical fields like healthcare.
The potential for DePINs to drive mass adoption of crypto is significant. Levin asserts that DePINs are at the beginning of a growth trajectory, not a speculative bubble. The scalability and real-world applications of DePINs are drawing interest from various projects. Levin mentions that XYO has successfully onboarded over 7 million users, with a remarkable 95% conversion rate from non-crypto to crypto users.
One of the most significant challenges facing DePIN is scalability. To address this issue, numerous DePIN projects, including Render, Nosana, HiveMapper, and Helium, have established their networks on the Solana chain. This choice was driven by the fact that the Solana chain offers transaction speeds that are 10 times faster than Bitcoin, reaching up to 65,000 transactions per second.
The continued development and adoption of DePINs could revolutionize not only the crypto industry but also sectors reliant on data integrity and decentralized solutions.
See also: Bitfinex lists AIOZ token: Enhancing decentralized media solutions
