IoTeX 2.0—Opportunities and challenges of modularization in the DePIN field

Author: Chen Mo Source: X,@cmdefi

DePIN ushered in a small explosion during the sluggish gap period of other traditional tracks in 2024, and at the same time, it took the AI express train and quickly entered the mainstream vision of the market. This article will interpret it from the following perspectives:

What changes will DePIN bring
How should novices understand DePIN
What IoTeX provides for DePIN
DePIN modular front and back sides

1/4 · What changes will DePIN bring

Conceptually speaking, DePIN is to use the decentralization and digital assets of blockchain, which allows any individual around the world to participate in the construction of physical infrastructure such as wireless networks, energy networks, etc. Everyone is a “spark”, instead of being controlled and managed by a large centralized company, these “fires” can continue to grow (get incentives) during this construction process.

This model inherits the characteristics of existing blockchain technology and will change the current situation of monopoly infrastructure construction and management of traditional centralized enterprises:

Decentralized ownership: Through token incentives, ownership of the DePIN network is scattered in the hands of many participants, avoiding the monopoly of centralized entities, while enhancing the resilience and security of the network and reducing the risk of centralized corruption.
Distributed infrastructure costs: leverage the resources of network participants to share construction and maintenance costs, greatly reducing costs.
Open competition and innovation: breaking market barriers, promoting competition and innovation, and providing better services.

2/4 · How should novices understand DePIN

Let me give you an example that is closer to life. For example, in the community where you live, each company has its own Wi-Fi network.If you want to share and use the same Wi-Fi network, it is not easy to implement even if the password is exposed, because it cannot be met in terms of bandwidth and signal coverage. But if we use DePIN to solve this problem:

Establish a shared network: Everyone can provide part of their own Wi-Fi bandwidth to form a large shared network.
Reward: You provide Wi-Fi services and you will get some tokens as rewards.
Better experience: The shared network coverage is larger, and the sharing model means that resources have been further integrated, the total cost is lower, the signal is stronger, and everyone benefits.

In this way, everyone contributed a little resources to build a brand new shared network, and everyone was rewarded.

3/4 · Construction of infrastructure

What does IoTeX offer?The core of DePIN is to connect and communicate the data of physical hardware with the blockchain world. IoTeX provides this kind of infrastructure service. It combines the underlying layer, off-chain computing middle layer, and physical hardware to connect smart devices and real devices.World data is connected to blockchain.

From a conceptual perspective, if we compare the previous pure chain ecosystem to a complete virtual world, then DePIN is to build this virtual world in a fair and positive feedback way. Projects like IoTeX provide this kind of informationInfrastructure for construction methods, because the data required for this construction method comes from smart devices, machines or sensors, it is necessary to design an architecture that conforms to professional and technical characteristics. This architecture is bound to be different from the pure on-chain architecture we have previously encountered, andNow there are essential differences in the indiscriminate issuance of coins such as “one-click issuance chain”.

For example, the W3bstream project developed by IoTeX provides a computing environment that can seamlessly connect the data generated by smart devices with smart contracts on the blockchain, helping developers process and analyze data obtained from the devices and use this data.To trigger various operations on the blockchain, complete the linkage between physical hardware and on-chain behavior.

3/4 · Modularity in the DePIN field

IoTeX 2.0 mainly proposes a modular structure. The concept of modularity has been basically verified in this bull market. For pure chain ecosystems, the blockchain architecture is split into DA layer, settlement layer, execution layer, etc.etc., which provides super flexibility and composition for the ecological construction of each chain. IoTeX 2.0 proposes a modular architecture that is more suitable for DePIN and AI project development based on the characteristics of the DePIN field:

Hardware abstract module
Connect the module
Sort module
Data Availability Module
Long-term storage module
Off-chain computing module
Blockchain module
Identity module
Governance module

This modular design is more complex than traditional blockchains because it involves multiple fields and even spans two different “worlds”, so unified standards need to be formulated in multiple dimensions.

For example, hardware abstract modules provide a standardized way for various Internet of Things devices, abstracting them into a carrier that can be accepted by blockchain networks, thereby realizing decentralized data collection and operation.This is very important for DePIN because it allows devices to directly participate in the network without the need for complex integration processes.

For example, the identity module needs to manage the on-chain and off-chain identities of the involved entities (such as smart devices, servers, validators, etc.).Ensure that the identity and behavior of each entity can be verified and tracked, supporting secure and compliant operations.

4/4 · Opportunities and Challenges

Judging from the current technological trend, modularity is a choice that adapts to the times. Applying modularity to DePIN is a very worthwhile attempt. In the long run, it provides more for the development of DePIN applications and even the combination with AI.The possibility and creativity of imagination can be full.

But we are clear that this is similar to Celestia’s modular concept. The technological concept upgrade of infrastructure may not be immediately fed back to the direct explosion of the application side. Just like now, many chains may choose to use the DA service provided by Celestia, but youNo changes can be directly felt from the user side, so the upgrade of the user side’s body feeling may require the next epoch-making story to provide.

Overall, in this year’s Crypto market, DePIN is the only track that can be combined with the AI concept, which is also the reason why there are many high-financial and high-valuation DePIN projects this year. In the short term, it is foreseeable that they are allA combination of popular concepts and solutions and BUFF, thanks to the blessing of AI concepts, the soil for hype in this cycle is better than in the previous few cycles.In the long run, the significance of DePIN is to reconstruct global infrastructure through decentralization and community forces, reduce costs and improve efficiency while breaking the monopoly and control of centralized power. This vision is more grand than decentralized finance, but the application facesThe resistance and technical complexity are also far higher than other tracks.