AI+DePIN: This Bull Market's Value Story Foundation
Recently, I have been focusing on the AI+DePIN track and believe it will be the main driver of this bull market. DeFi protocols, NFTs, public chains, and technological innovations are all moving towards DePIN.
In this article, I will discuss how to understand the concept of DePIN. In essence, conventional CePIN servers, sensors, communication networks, and other physical infrastructure networks require centralized computing cluster services like AWS to function, which can be prohibitively expensive.
DePIN utilises blockchain token incentives to enable users with hardware devices to establish large-scale collaborative relationships with physical devices, forming an infrastructure network with service capabilities. This allows small and medium-sized enterprises to access network resources in a cost-effective manner.
Some may argue that this is similar to the 'hardware equipment mining' narrative of the last bull market, such as FileCoin, Chia, and Arweave. While there are similarities, it is not entirely the same. This bull market has introduced a new variable: AI.
While there is some demand for decentralized storage, it is not particularly strong and is often mixed with pseudo-demands such as data storage access. While it can address storage needs, the unstable network distribution structure and node efficiency operation make it difficult to implement in online applications with strong real-time requirements, such as videos and games.
If DePIN can provide supply chain cloud services, such as GPU, or mobilize hardware devices across the network to form an infrastructure network, there will be a high demand for large model training, distributed machine learning, data storage verification, mining, distributed reasoning, and other related areas.
There is a high probability that AI+DePIN will replace the previous round of DeFi Summer and become the main value narrative of this bull market. This explains why MeMe will rise after BTC rises, but there is no movement in the old DeFi that everyone is anticipating. Whether it is speculation in the new or old, or the excessive burden caused by poor expectations from the last round of DeFi, the key issue remains the lack of a narrative opportunity that can drive the mixed linkage of on-site and off-site funds.
Undoubtedly, the last bull market NFT brought in traditional users and funds through the reshaping of the artist's digital market. This bull market AI+DePIN may play a similar role.
Does this mean that old DeFi has no chance? In my opinion, this is an opportunity to reshape and restructure traditional DeFi.
Public Chain
he last round of DeFi was too focused on the EVM environment. The narrative of EVM-compatibility has made the differences between chains smaller and smaller, increasing the possibility of linkage. However, they are all working on chain infrastructure. When will the application ecology be launched?
Thus, the initial step for this AI+DePIN round is to remove EVM and allow high-performance chains to take the lead, resulting in the creation of innovative applications.
DeFi Protocol
A while ago, Vitalik discussed the combination of AI and blockchain, which led to an entrepreneurial direction: AI-powered DeFi transactions. Smart contracts can evolve into super smart contracts, making it easier for users to interact and reducing the wear and tear of cross-chain transactions. This is the direction in which intent transactions should focus their efforts.
Therefore, it is crucial that old DeFI can quickly implement a series of upgrades, such as the intent transaction model and wallet front-end. The intent-centric narrative is ongoing, and only one project can combine AI and be implemented.
Other underlying technology innovations
Additionally, other underlying technological innovations should be considered. The current web3 innovation environment is already mature, and the product and innovation power of web2 has already penetrated. These narratives aim to address the issues of low inter-chain interaction efficiency and high collaboration costs in the web3 environment. Due to the slow development of older chains, micro-innovations such as 'modularization' and 'chain abstraction' have emerged. However, they lack real explosive potential.
The above information is provided by VERTU.
