Decentralized physical infrastructure networks (DePINs) are set to become a key application in the Web3 space, potentially attracting a large influx of new users to the crypto ecosystem, according to a report by Web3 investment firm MV Global.
What are DePINs
DePINs are blockchain-based protocols designed to decentralize real-world infrastructure and systems, including communication networks, data storage, and energy markets.
Growing Adoption in Web3
MV Global estimates that the DePIN ecosystem comprises over 1,000 projects and is valued at more than $50 billion. The firm believes that DePIN technology has the potential to tackle critical infrastructure challenges, such as high costs and the 'cold start problem' in resource-intensive networks.
AI Impact on DePINs Market
AI demand could drive a decentralized data storage market to $128 billion by 2028. The report notes that the adoption of DePINs in the real world is accelerating, with hundreds of thousands of users engaging with various protocols.
DePINs have the potential to significantly transform the Web3 space, addressing key infrastructure issues and driving market value growth.
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