DePIN and iExec
What is DePIN
This acronym refers to Decentralized Physical Infrastructure Networks, which utilizes blockchains and incentives like token rewards to develop physical infrastructures in the real world. Its areas of activity cut across like AI, transport and wireless connectivity.
DePINs aim to develop the dynamics of communities to succeed by offering solutions and improvements which centralized systems have maximized to their sole profit. Centralized systems engage their communities with fiat based rewards and referral bonuses to lure providers whilst maintaining control of the providers’ resources during the time of activity. DePINs on the other hand, offer providers a beneficial way of getting involved in public service provision with flexible and higher rewards, doesn't that sound exciting?
To understand this growing ecosystem, you need to realize that the traditional model is being flipped in a better way. A permissionless system is being created for both providers and users via the blockchain, eliminating criteria for “specific people” to become providers, as anyone fulfilling the necessary criterion can become one. Users aren't left behind, as they also through blockchain integrated solutions obtain their services, and providers receive their rewards in cryptocurrencies. Records of every action are kept and made available to public view.
Like every ecosystem or field in crypto, DePIN is categorized into two;
Physical Resource Networks (PRNs) also referred to as location-based decentralized physical resource networks. In this network hardware resources relative to connectivity, energy e.t.c. are provided as services. In most cases they are in fixed locations and non fungible.
Digital Resource Networks (DRNs) are fungible digital networks of resource providers. Computing power, storage facilities are amongst resources providers offer. These resources are available everywhere as they aren't in fixed locations.
How does DePIN work
We can refer to the process as the Flywheel of DePINs. With the blockchain making this process possible, it begins with the building of an infrastructure base to attract users. These users pay to access and use the network, boosting further the supply-side growth. Initially, the cost of building the network is distributed among the supply-side users who receive incentives to start off the network. In the best of circumstances, the cycle of demand fueling more supply begins, which is incentivized by token rewards growing in value due to high demand.
When you look at this concept, it already qualifies iExec as a bona-fide DePIN project; in terms of data and compute power, suppliers of these assets receive tokens (RLC incentives) for contributions to demands already in place for them. DePINs offer permissionless access and security just like iExec, on its Marketplace, technology like Intel SGX2 and TEE ensure the safety of these assets during and after use.
iExec and DePIN
iExec the leading cloud computing giant from all indications can be classified as a Digital Resource Network as it offers computing power to users via its Marketplace. Leveraging the decentralized nature of the blockchain, iExec distributes computing tasks across a network of participants.
In this merge of iExec and DePIN, the Web3 community holds a massive spot in it. A more user-centric and decentralized internet can be created, offering users more control over their data and online experiences. For example, providers don't need to offer major details in the creation of profiles before offering services likewise to users. Personal data is safe and isn't a necessity to participate in this process. Receiving incentives are made easier as just your Ethereum addresses are needed rather than the traditional method of banking details.
iExec is also the definition of the DePIN and AI crossover. With Messari already defining them as one, we stand a chance to witness iExec's AI solutions being more available whilst DePIN reduces entry barriers. Datasets can become valuable and users can have more control over it whilst monetizing it. We could see a merge of iExec's secure computing platform with DePIN's privacy focused storage promoting a more secure and private data ecosystem. Data-driven applications and services could be enabled, AI models can leverage DePIN's distributed and encrypted storage infrastructure to train and operate on sensitive data without compromising user privacy.
We're talking about taking the AI ecosystem to a higher level with the iExec and DePIN integration. Computing power becomes more accessible, easy monetization of data for providers offering services, permissionless access to GPU power and other high performance compute resources, Machine Learning (ML) optimized to carry out various tasks, creation of more data privacy and security technology, and incentives models are better for providers.
To close this article, I look forward to this integration and merge as it holds great promise for the future of decentralized data management, cloud computing and Web3. By combining their complementary strengths, they can create a more secure, private, and equitable data and AI ecosystem that empowers individuals and businesses.
