Decentralized physical infrastructure networks (DePINs) which began to acquire traction with major global manufacturers in 2023 and AI technologies have been predicted as “power duo” of 2024 by DeFi executives.
DePINs are blockchain protocols that incentivize the decentralized construction and operation of physical infrastructure through cryptocurrency tokens. An increasing number of entities are linking it to the Internet of Things (IoT).
Based on data provided by Messari, a digital asset marketing intelligence firm, the current valuation of the DePIN market is approximately $2.2 trillion. Projections indicate that this value could increase within the next four years to $3.5 trillion.
Bosch’s recent collaboration with the European Union to establish a decentralized Internet of Things and the Peaq Network blockchain tokenizing a fleet of Teslas via DePIN technology are both examples of how the technology has enabled progress.
There have been speculations that DePIN technology could emerge as a pivotal cryptocurrency investment of the current decade. Nevertheless, the proliferation and assimilation of artificial intelligence (AI) in recent times have raised concerns regarding the compatibility of these two technologies.
The CEO of the Peaq Network, Leonard Dorlochter, said that he expects the DePIN industry to “bloom in 2024” and that it is “inextricably linked to the AI boom.”
“Think of it: AI enables machines to function as independent economic agents creating real-world value, and the DePIN model creates an ownership and value distribution framework for that, enabling owners of AI-powered devices to earn from their activities.”
According to Dorlochter, the combination of DePIN and AI is an ideal match, and he foresees that 2024 will “fundamentally alter the way we interact and manage AI-powered machines.”
According to Hatu Sheikh, the chief marketing officer of DAO Maker, DePIN and AI “complement each other in the most efficient way possible” and are therefore positioned to be the “power duo” of 2024.
Sheikh highlighted the emergence of DePINs as a “game-changing solution” that securely achieves scalability despite the numerous flaws of conventional centralized computing models.
He stated that the enhanced and optimized computational power enabled by DePINs will be utilized by AI algorithms that demand enormous power.
“A robust and sophisticated AI, empowered by such enhanced capabilities, is poised to revolutionize every industry and service area around us, including healthcare, manufacturing, finance and entertainment.”
