In 2023, Decentralized Physical Infrastructure Networks (DePINs) are competing globally with major manufacturers to integrate physical world infrastructure with blockchain technology. DePINs are blockchain protocols that use cryptocurrency assets to promote decentralized creation and operation of physical infrastructure, increasingly associated with the Internet of Things (IoT).
The current market value of DePINs is around $2.2 trillion, with potential growth to $3.5 trillion in the next four years, according to Messari’s blockchain data analysis. Notable developments facilitated by DePIN technology include Peaq blockchain network’s tokenization of a Tesla fleet and Bosch’s efforts to build a decentralized IoT with the European Union.
Some analysts claim DePIN technology could be one of the most significant crypto investments of the decade. However, the recent widespread emergence of Artificial Intelligence (AI) and its integration process have raised compatibility questions between the two technologies. Peaq network’s CEO, Leonard Dorlöchter, believes the DePIN sector will flourish in 2024, naturally linked to the AI boom.
Dorlöchter describes the DePIN and AI combination as a match made in heaven, predicting 2024 to be a transformative year for managing and interacting with AI-powered machines. DAO Maker’s marketing director, Hatu Sheikh, anticipates DePIN and AI to become a powerful duo in 2024, complementing each other efficiently.
Sheikh highlights DePINs as a game-changing solution that addresses many flaws of traditional centralized computing models, providing secure data acquisition. The enhanced and optimized computational power offered by DePINs is expected to serve the energy-intensive AI algorithms, potentially revolutionizing sectors including health, manufacturing, finance, and entertainment.