Opinion Business
February 15, 2024

DePINs Can Bridge Gap Between Blockchain and Physical World Needs, claims Subsquid CEO Dmitry Zhelezov

In Brief

Subsquid CEO Dmitry Zhelezov shared how DePINs are gaining momentum to address challenges in sectors ranging from transportation to retail.

DePINs Can Bridge the Gap Between Blockchain and Physical World Needs, Claims Subsquid’s CEO Dmitry Zhelezov

Decentralized Physical Infrastructure Networks (DePIN) are reshaping the landscape of physical infrastructure and stand at the cusp of a transformative era. With a staggering addressable market valued at approximately $2.2 trillion and projected to soar to $3.5 trillion by 2028, according to industry analysis by Messari — the future of DePINs is brimming with promise.

DePIN leverages a community of contributors to build and maintain infrastructure. Unlike traditional infrastructure, DePIN networks are permissionless, allowing anyone to participate as long as they adhere to the rules of the protocol. Being flexible, the technology can scale up and down according to demand.

Additionally, pricing isn’t driven by a monopoly but by an exchange between individuals, which is expected to be significantly cheaper.

“We’re seeing an increase in IoT devices going live. By 2030, these devices are projected to outnumber people one to three. DePIN presents itself as a solution to solve the need for edge computing and scalability and ensure that data isn’t monopolized by a few but put in the control of users,” Dmitry Zhelezov, co-founder and CEO of Subsquid told Metaverse Post, while talking about factors behind DePINs market expansion.

“Another contributing factor is the increased computing power used to train LLMs. DePIN includes making existing, unused resources, such as computing power or bandwidth, available for others to access remotely. As more projects train their models, using DePIN instead of centralized networks could significantly lower the cost,” Zhelezov added.

Founded in 2021, Subsquid is a data network for blockchain platforms and describes itself as a Web3 data lake.

DePIN Facilitates Real-World Applications Across Industries

According to Subsquid’s Zhelezov, the platform is currently working on adding Solana data to its data lake to facilitate the go-to-market for Solana builders. Currently, most of them build their indexers in an ecosystem where archival nodes are handled differently than Ethereum. It has validated the need for a more efficient solution and is working to expand to this chain ecosystem.

Real-world applications of DePIN are impacting industries, showcasing their substance across sectors. According to Zhelezov, many notable DePIN projects have found their homes in the Solana ecosystem. One example is Hivemapper, a DePIN project that equips drivers with cameras to create more up-to-date world maps than Google Maps. This is especially interesting for navigation systems and automated driving use cases – an industry we expect to grow.

In retail, Helium harnesses its LoRaWAN network and physical helium hot spot devices to deliver mobile services. With thousands participating, Helium offers a decentralized solution that challenges conventional providers. Additionally, Filecoin leverages cryptographic proofs atop IPFS to incentivize and manage a distributed storage network, ensuring secure data storage.

“The beauty of blockchain is that data is open and accessible in theory. However, we saw that builders needed help accessing the wealth of data when using their dApps at scale and in affordable ways. That’s why we started building Subsquid. To empower devs to build the dApps without being held down by challenges of accessing or cost for data,” Subsquid’s Dmitry Zhelezov told Metaverse Post.

“We believe in the power of decentralized infrastructure and the role blockchain can play in aligning incentives. With Subsquid, we contribute to making this vision of an open, more decentralized web come true as a data provider that adheres to the same principles of decentralization and transparency.”

DePINs present an opportunity to democratize infrastructure access and empower communities to respond dynamically to evolving needs. However, like any physical infrastructure endeavor, challenges loom regarding the balance between operational costs and potential incentives for running DePIN devices, as well as the level of demand for the resources DePIN aims to capture.

The key to widespread adoption lies in instilling trust in the reliability and efficacy of these networks. Trust is a factor that continues to be a significant hurdle for the crypto industry at large.

“Beyond a lack of trust, as Web3 moves toward modularizing, we’ll see increasing fragmentation, which hampers projects’ potential to be discovered and attract a viable audience,” said Zhelezov. “Ultimately, with people trusting that these networks can deliver, it’ll be easier for them to gain adoption.”

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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