DEPIN: New Industrial Revolution

Author: Erik Lowe, Pantera content director; cosmo jiang, Pantera investment portfolio Manager; Eric Wallach, Pantera investment analyst; translation: Bitchain Vision Xiaozou

The industrial revolution is the era of reform. It improves productivity and reshapes the economic form through breakthrough large -scale machinery manufacturing.During the industrial revolution, the transformation from the main local agricultural economy to the urbanization industry center appeared, and social centralization was an inevitable product.

However, although centralized production has improved efficiency, it also brings challenges.Factory is easily affected by disaster events such as fire or other single -point faults (such as mechanical failures).

Although in the past few centuries, it has been promoted by new technological progress, and we have gone through a series of “industrial revolution” stage, but modern companies still face many related core issues such as resources and human capital concentration.In addition, as management is becoming larger and larger, the regulatory process is becoming more and more heavier. At present, the cost and friction of large -scale business are higher.

However, now we believe that a new stage is formed, that is: re -assume the composition and management of business, services and networks.The decentralized physical infrastructure network (DEPIN) is expected to introduce a new era of productive forces, but it is not a centralized force that drives the development of this era, but decentralized forces.

1As well asDepinWhat is it?

“Decentralized physical infrastructure network (Depin) Use token rewards to motivate hardware -based network deployment and complete the real world tasks.“”MESSARIClassification system

The core of DEPIN is decentralized market, which associate resource suppliers with buyers.Unlike typical traditional models (responsible for resource production by a company), the supplier is a network composed of many independent operators.Through economic rewards such as tokens or expenses, these operators are motivated to contribute their resources (usually in the form of physical hardware) to align their interests with the success and development of the DEPIN ecosystem.

DEPIN has highly respected DEPIN’s potential for completely changing the physical infrastructure network in a series of industries such as cloud computing, wireless networks and cloud storage.For example, Helium Network is a decentralized wireless infrastructure network of an IoT (Internet of Things) device that allows operators to deploy wireless hardware to earn Helium tokens, which is a reward for the coverage of the expansion network.

One of the key differences between DEPIN and the heart of heartization is who is the stakeholder.The value of DEPIN did not flow to the intermediary or company of rent -seeking, but was assigned to operators who jointly owned and operated the network.

Many DEPIN projects have no shortage of innovation practices, which is very interesting, but the problem also appears: “If my existing service runs well, what added value will Depin provide me?”

2As well asDepinWhat are the advantages?

The benefits of depin can be attributed to the following key advantages:

Reliable, elasticity and security -enough node operators present a decentralized distribution, which can ensure that the normal operation time of the network and the single -point failure in the inherent single -point fault in the centralized physical system.Security or fraud risks related to closed systems can be relieved by transparent, unchanged, and audited blockchain networks.
Users’ burden -because the DEPIN project is operated by the operator network, the operating expense items of centralized operating companies such as physical maintenance and legal expenses have less impact on prices, so the saved costs can be passed to users.
Community -driven decisions -The decision -making of minority executives may not always meet the best interests of users and/or operators. In some cases, their decisions are mainly based on their own interests.In DEPIN, the decision -making is made by the token holder community, which may promote healthier ecological development and benefit online participants in a more fair way.
Zero Worker Economy (gig economy) Growth -In the past few years, the nature of work has changed. More and more people want to have the freedom of independent work, or find a source of passive income.The DEPIN network often uses potential labor supply, and the ability of someone to do more without affecting the established daily work -for example, someone can send a few takeaways on the way home on the way home.
Better products and services -a powerful DEPIN flywheel may create better products than centralized opponents.With the increase of user needs, growth is captured by tokens with strong value cumulative mechanism.These tokens in turn inspire more operators to contribute, further improve products and attract more users.This is the DEPIN flywheel.

We believe that DEPIN has a bright prospect, but we also know that it is not without challenges.Problems such as regulatory obstacles, potential safety issues, and dependence on widespread adoption are potential obstacles.However, its potential benefits make it a concept worth exploring.

3As well asDepinProject case research

Below we will share two case studies on the frontier of the DEPIN Revolution.

(1.Geodnet

Geodnet is building the world’s largest decentralized Real Time Kinematics (RTK) network, which is supported by the satellite miner community to achieve large -scale IoT.It is subverting existing enterprises by establishing an affordable global decentralized real -time data market.

The following is our overall investment theory:

Product differentiation: Geodnet’s RTK network can provide better GPS data (accuracy is 1 cm, and the accuracy of standard GPS is 2 meters), and the price is cheaper (more than 10 times cheaper).The network can expand faster.
Great market: Global Satellite Navigation System (GNSS) is a market with a size of more than $ 200 billion.The revenue of listed companies such as Trimble ($ 15 billion) and HEXAGON ($ 30 billion) ($ 30 billion) is US $ 10 billion, and EBITDA before the interest tax depreciation and amortization (EBITDA) is 3 billion U.S. dollars.
Growth flywheel: Miners can earn GEOD tokens by purchasing and installation of GNSS base stations.These incentive measures have prompted 5,500 devices to be added to the Geodnet network, more than any large listed competitors.
Development momentum: In less than three years, Geodnet’s recurring income has reached about one million US dollars, and the number of online miners has exceeded 7,600, which has caught up or surpassed the network size of listed companies.
Cumulative value: 80%of Geodnet income for purchasing and burning Geod tokens.

(2.Hivemapper

HiveMapper is a decentralized map network that uses cryptocurrency incentives to come to the latest global map data with high -quality crowdsses.HiveMapper aims to use community contributions to subvert the digital map market led by centralized technology giants by providing updated, more comprehensive, and more economical map data.

The following is our overall investment theory:

Long -term trend: Due to the growing demand in enterprises, logistics and emerging advanced driving assistance systems (ADAS) or the field of autonomous driving, the digital map market is growing rapidly, and it is expected to reach US $ 37 billion by 2026.
Competitive advantage: HiveMapper’s crowdsourcing mode makes the map data update faster 20-100 times faster. Compared with the traditional surveying and mapping method of competitors, it has a significant cost advantage (for example, the cost of each contributor is about 300-550 US dollars, and while the cost of each contributor is about 300-550 US dollars, and while the cost of each contributor is about $ 300-550, and while the cost of each contributor is about $ 300-550, and it, and the cost ofThe cost of each Google map tool is $ 500,000).
Basic achievements: HiveMapper has nearly 150,000 contributors, and has drawn more than 14.38 million kilometers of non-heavy roads, accounting for 24%of global non-overlapping roads, and the speed is 5-6 times faster than Google Maps.The network also obtained a number of corporate customers, and its income is also reflected in the chain.
Catalyst: HiveMapper Bee driving recorder launched this year has significantly improved data quality and user experience.The growth of ADAS and the increasing number of autonomous vehicles, coupled with the new EU regulations require vehicles to equip the intelligent speed auxiliary system, these are long -term driving factor for updated and more detailed map data requirements.
Main risks: Competition from large and old -fashioned enterprises, regulatory challenges for data collection across judicial regions, high preliminary costs of emerging market contributors, and the implementation risk of managing complex token reward systems.