The growing convergence of blockchain and artificial intelligence could see the decentralized physical infrastructure network (DePIN) market soar past $3.5 trillion in the next three years, according to the World Economic Forum (WEF).
DePIN merges blockchain technology with community-owned physical infrastructure to create decentralized networks where participants can contribute resources in exchange for cryptocurrency.
“Currently valued at $30-50 billion with over 1,500 active projects worldwide, this relatively new sector is projected to grow to $3.5 trillion by 2028,” the report states.
The most significant catalyst for the industry’s growth is the emergence of decentralized physical AI (DePAI), which marks a “fundamental shift” in AI agent interactions with physical infrastructure and external data, the WEF said.
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Unlike centralized models. DePAI employs decentralized networks where users contribute to machine learning (ML) processes through daily activities, meaning that AI development is not constrained by centralized data sets.
Other industry leaders also foresee a significant market opportunity in DePIN, driven by the growing need for decentralized wireless hardware connectivity.
The next $1 trillion firm will most likely emerge from the DePIN industry, driven by this growing need for decentralized wireless solutions, Carlos Lei Santos, the co-founder and CEO of Uplink, told Cointelegraph in an interview.
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DePIN poised to reshape computing infrastructure
The report adds that as DePIN adoption grows, it may “reshape the future of omni computing” by enabling a more distributed and resilient computing environment.
Decentralized applications like Bittensor and Threefold “demonstrate” the growth potential of the DePIN sector by enabling more interoperability among its key infrastructure elements, according to the report.
Bittensor enables the development of decentralized AI models, while Threefold offers users a sovereign digital identity system for Web3, the report states, adding:
“This democratization of AI training ensures models remain diverse and contextually relevant while compensation contributors through blockchain-based inencitve systems.”
Messari also predicted a $3.5 trillion DePIN market by 2028, which would mean an over $1.3 trillion increase from the current addressable market of $2.2 trillion, according to the crypto research firm’s report from January 2023.
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