DePINs & AI: 2024’s Game-Changing Power Duo in DeFi
The arena of Artificial Intelligence (AI) and Decentralized Physical Infrastructure networks (DePIN) is expanding at an exponential rate, garnering enormous investments from around the world. Companies and governments understand these technologies’ transformative potential and are investing billions to develop and incorporate them into many industries. Let’s go into the subject to see how this “duo power” is going to influence the crypto sector.
The Beginning of the DePIN Era
Decentralized physical infrastructure networks (DePINs) gained popularity in 2023 as major manufacturers across the world sought to link physical world infrastructure with blockchain technology.
DePINs are blockchain protocols that employ cryptocurrency tokens to decentralize the building and operation of physical infrastructure. It is increasingly linked to the Internet of Things (IoT).
The technology has permitted advancements such as the Peaq Network blockchain, which tokenized a fleet of Teslas using DePIN technology, and Bosch’s recent collaboration with the European Union to construct a decentralized IoT.
Some believe that DePIN technology will be one of “this decade’s most important crypto investments.” However, the broad rise and integration of artificial intelligence (AI) during the last year poses the topic of compatibility between these two technologies.
Leonard Dorlöchter, co-founder of the Peaq Network, told Cointelegraph that the DePIN industry is “set to blossom in 2024,” and is “inherently linked with 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.”
Dorlöchter described the DePIN/AI combo as a “match made in heaven” and predicted that 2024 would be a watershed moment in how we control and interact with AI-powered equipment.
Hatu Sheikh, DAO Maker’s chief marketing officer, believes DePIN and AI will be the “power duo” of 2024 because they complement each other in the most effective way imaginable.
Sheikh described DePINs as a “game-changing solution” that addresses the numerous flaws of existing centralized computing methods to enable secure scaling.
He stated that the increased and optimized processing capacity provided by DePINs will be useful for AI algorithms that require large quantities of 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.”
Investments in AI and DePIN have Reached Historic Levels
According to a Stanford University analysis, governments such as the United States, China, and various European nations made massive investments in AI businesses between 2013 and 2022. The United States leads with $248.9 billion, followed by China ($95.1 billion) and the United Kingdom ($18.2 billion).
These investments are intended to boost AI capabilities in fields such as healthcare, finance, and logistics, among others. Tech behemoths like Amazon, Google, and Microsoft are at the vanguard of this change, developing AI solutions that promise to alter our everyday lives.
Meanwhile, the DePIN crypto is rapidly expanding. DePIN bridges the digital capabilities of blockchain with physical infrastructures such as data storage and power grids. This collaboration results in more efficient, robust, and privacy-friendly systems.
According to Messari on X, early-stage DePIN initiatives raised more than $246 million in 70 agreements by August 1, 2024. IoTeX (IOTX) is the platform that has so far received one of the largest financing rounds in this ecosystem.
In terms of volume, Messari reported a 296% increase year over year. In comparison, the entire market capitalization of the top DePIN projects has increased by 400% over the last year, bringing the industry to $20 billion.
DePIN projects show significant promise for doing difficult computations and handling enormous volumes of data.
A Winning Combination: Xield Protocol
In the ever-changing field of decentralized infrastructure and Web3 gaming, Xield Protocol stands out for its novel combination of Decentralized Physical Infrastructure Networks (DePIN) with cutting-edge gaming and DeFi technologies. This transformational strategy improves operational efficiency in the GameFi industry, allowing developers to build engaging gaming experiences while also offering gamers smooth and safe gameplay. By decentralizing the core infrastructure, Xield enables unparalleled development and potential in the gaming industry.
Furthermore, Xield Protocol enables gamers to unlock real-world revenue through its exclusive monetization tactics. With features like staking and yield farming built right into the game, users may earn concrete rewards while playing the game. By employing overlay technology, Xield enhances the gaming experience and converts gaming devices into revenue-generating assets, enabling a collaborative ecosystem that benefits both players and developers. This revolutionary strategy leads to a more connected and profitable future in the cryptocurrency ecosystem.
Closing Thoughts
As we look ahead to 2024, the collaboration between DePIN and AI represents a breakthrough possibility for the crypto sector. With initiatives like Xield Protocol leading the way, the convergence of decentralized infrastructure and innovative technologies will transform the GameFi and DeFi landscapes.
This progression offers increased operational efficiency, security, and new money streams for both players and developers. By using these advancements, the cryptocurrency business may achieve unprecedented development, paving the path for a more integrated and productive future. Embracing this strong pair might uncover new opportunities, making 2024 a watershed moment for digital assets.
