If the inscription represents the demand for fair launch in the Crypto market, then DePIN represents the embrace of Web3 in the infrastructure field.
Author: JDI Global
In the just-passed 2023, the Crypto market went through the harshest darkest moment and ushered in a new bull market, and the concept that ignited this bull market is AICoin and DePIN (Decentralized Physical Infrastructure networks). If the inscription represents the demand for fair launch in the Crypto market, then DePIN represents the embrace of Web3 in the infrastructure field.
DePIN is leading a revolution, not only the integration of blockchain and the Internet of Things at the technical level, but also the incentive to build infrastructure at the business level. This revolution is fundamentally changing physical infrastructure.
From network builders to service providers, and then to end consumers, DePIN's paradigm is to incentivize individuals and small businesses to deploy and operate infrastructure networks, making the deployment of digital-centric infrastructure more efficient, democratic, and cost-effective on a global scale.
From telecommunications to data warehouses and data sensors, to the layout of AI computing power and models, DePIN has unlimited potential for accelerating technology.
According to the research report "The DePIN Sector Map" by the leading industry institution Messari, the market size of DePIN is expected to reach $3.5 trillion by 2028. In terms of time, there is not much time left for the DePIN track, but in terms of market size, the DePIN track is obviously still in a very early stage.
This article mainly outlines the development context of DePIN in 2023, introduces JDI Ventures' participation in DePIN, analyzes the main applications of DePIN, and looks forward to the development trends of DePIN in 2024.
Replay the development context of DePIN in 2023
For many practitioners, DePIN is a new concept that suddenly emerged. The reason it has attracted attention is simply because the market performance of DePIN concept tokens has been amazing recently, but in fact, the DePIN concept has undergone a considerable period of brewing.
The concept of DePIN (Decentralized Physical Infrastructure networks) was officially proposed by Messari in the early 2023 research report "The DePIN Sector Map", defining DePIN as "using cryptographic economic protocols to deploy real-world physical infrastructure and hardware networks", simply put, it is a way to use blockchain-based token incentives to promote various participants to build physical infrastructure networks.
And Messari has given a quite optimistic market estimate - it is expected to reach a scale of $3.5 trillion by 2028, which also once attracted high market attention to the DePIN concept.
But in fact, this is just the starting point of the appellation of DePIN. Before that, concepts such as Proof of Physical Work (PoPW), Token Incentivized Physical Infrastructure Networks (TIPIN), EdgeFi, etc., were proposed successively, but in the end, DePIN was finally adopted in the community vote initiated by Messari.
Putting aside the evolution of the appellation, projects that "use cryptographic economic protocols to deploy real-world physical infrastructure and hardware networks" have actually existed for a long time.
For example, the decentralized network Helium was established in 2013, and the decentralized storage Storj was established in 2014. At that time, teams from sub-sectors such as communication and storage spontaneously explored how to build physical infrastructure networks in a decentralized manner. Later, sectors such as the Internet, AI, energy, and data collection gradually joined in. Although the sub-sectors are diverse, the core logic is the same, and thus the thriving DePIN track today was eventually formed.
After the DePIN concept was proposed in January 2023, the heat lasted for less than a month and then subsided, after all, the market was still in a deep bear market at that time. However, some investment institutions and entrepreneurs began to lay out, and these very early actions were difficult for the market to capture.
At the Web3 Carnival in Hong Kong in April 2023, DePIN once again became an industry hotspot, largely because the Hong Kong SAR government has the highest acceptance of DePIN and RWA in the Web3 field, and DePIN is more suitable for early landing. Therefore, it continued to attract some investment institutions, entrepreneurs, and even relevant government departments to lay out. Similarly, these very early actions were difficult for the market to capture.
It wasn't until after August 2023 that the concept tokens of DePIN, represented by Helium Mobile and Honey, skyrocketed, becoming the hottest track outside of AICoin, and this round of heat was actually driven by multiple factors.
The most visible aspect in the market is that the entire crypto market has turned from bear to bull, but why only DePIN and AICoin have shone brightly, so we need to specifically examine the special reasons behind it.
As mentioned just now, there have always been investment institutions and entrepreneurs laying out in the DePIN track, but the market environment at the beginning of 2023 was not suitable, and the new paradigm of DePIN was still being explored, so few new DePIN projects were launched. By the end of 2023, whether it was the improvement of the market environment or the accumulation of exploration by entrepreneurs, many projects gradually took shape from the initial concept and began to be launched into the market one after another, and these subsequent actions were then captured by the market. At this time, DePIN quickly occupied an important position in a market with weak technological innovation.
JDI Ventures' Layout in 2023
JDI Ventures is an investment institution under JDI Group that focuses on Web3 technology infrastructure, strategically laying out and continuously exploring around hardware service providers, DePIN project parties, developers, and communities.
Since its establishment in 2019, in addition to participating in the DePIN industry through investment, JDI Group is also the earliest and largest hardware direct participant in the DePIN field - it has established its own hardware platform to integrate leading projects in DePIN and the field of Decentralized AI, such as the development and promotion of hardware layouts for Helium and DIMO Network, especially solving their supply chain and community service issues in the Asian region.
In the past four years, JDI Group has successfully captured the opportunities in the DePIN industry, accumulated rich experience in DePIN construction through continuous investment, exploration, and promotion, and accelerated the adoption of Web3 applications in the real world, gradually becoming a leader in the DePIN field, contributing its irreplaceable influence to the growth of the DePIN industry.
Over the past year, as an investment institution under JDI Group, JDI Ventures has not only invested in projects such as Geodnet, PowerPod (electric vehicle charging solutions), Metablox (a global WiFi network integrating Web3), Helium Mobile (blockchain-based mobile network services), DIMO Network, and Hivemapper (connected car network), but also actively explored the possibility of DePIN projects in underdeveloped infrastructure areas such as Africa, fundamentally changing the local communication environment.
In 2024, the DePIN projects laid out by JDI Ventures will continue to demonstrate the extensive applications and potential of DePIN technology. The following are only some of the relevant information about the projects laid out by JDI Ventures.
1. Helium Mobile
JDI Ventures, as an early supporter and participant of Helium, is now actively involved in the Helium Mobile project. Currently, Helium Mobile has over 10,000 subscribers, demonstrating rapid adoption and market penetration of its services.
The MOBILE token has seen a growth of over 1000% in the past few months, driven by the growth of 5G and Wi-Fi networks. With the national service launch, explosive growth is expected for the network.
At the beginning of 2024, the data usage of Helium Mobile's subscription users on the Helium network has exceeded their usage on T-Mobile, indicating a user preference for Helium's services over traditional mobile operators. This demonstrates that Helium Mobile, as an emerging DePIN service, is successfully attracting and retaining users, and has begun to compete with traditional large-scale operators in terms of data traffic.
2. DIMO Network
In December 2023, DIMO Network celebrated its one-year anniversary of mainnet operation. With the manufacturing support from Hashdog, a hardware manufacturer laid out by JDI Ventures, DIMO has made significant progress in the field of vehicle data connectivity and analysis.
DIMO has been recognized in CB Insight's "Top Connected Vehicle Data Platform Companies" and was specially featured in CryptoLola's top DePIN project showcase.
Real-time vehicle valuation: Over 32,000 vehicles connected to DIMO, valued at over $300 million. The real-time valuation tool helps drivers maximize the value of their vehicles.
Number of Macarons device connections: By the end of 2023, over 1,000 Macarons devices had been connected to DIMO, with even greater growth expected in the new year.
DIMO's analytics team has addressed the challenge of accurately measuring fuel levels in vehicle tanks.
DIMO provides monthly reports that simplify the process of buying and selling used cars, providing actual price valuations to help users navigate the second-hand car market.
3. PowerPod
JDI Ventures' investment in PowerPod represents a long-term layout in the emerging energy technology and green transportation solutions in the DePIN field.
As a startup focused on electric vehicle charging solutions, PowerPod has enormous growth potential in building a distributed shared charging network.
PowerPod's vision aligns with JDI Ventures' global movement to promote environmentally friendly transportation and energy solutions. JDI Ventures' investment in PowerPod not only demonstrates its commitment to clean energy and sustainable development but also signifies exploration of innovative energy network models.
4. Metablox
Metablox enables users to seamlessly roam between access points anywhere in the world and provides token rewards to individuals participating in its network.
Currently, Metablox has deployed 12,714 nodes in 96 countries and has 11,317 active users, ranking second on DePINscan, laying a solid foundation for future growth in the DePIN field.
Metablox's success is not only the result of technological innovation but also a reflection of cooperation and transparency improvement in the DePIN field. JDI Ventures not only supports the technological development of Metablox but also assists in the market promotion and brand building of Metablox in the DePIN field.
5. Geodnet
GEODNET's main source of revenue comes from its correction services and related services to the global satellite navigation system (GNSS) industry and its users. According to market reports, enhanced services represent a category of approximately $20 billion.
GEODNET already has a technological advantage in the high-precision application field and has deployed over 3,300 user sites. It plans to expand its network to over 50,000 sites by 2024, aiming to become one of the world's largest networks. 2023 was the first year GEODNET received on-chain revenue, burning 4,040,000 GEOD tokens (0.4% of the maximum supply).
JDI Ventures not only participated in GEODNET's financing but also deeply engaged in GEODNET's hardware sales business.
6. Phoenix
Phoenix Global provides decentralized AI infrastructure, including AI computing layers and enterprise-level Layer 1 blockchains. Additionally, Phoenix also offers no-code AI deployment and multi-party computation, ensuring that analysis, computation, and value sharing do not compromise data privacy.
JDI Ventures has joined Phoenix as a strategic investor and hardware partner, which will contribute to the rapid development of the SkyNet AI node network, especially through the upcoming launch of PhoenixNode and additional computing infrastructure hardware.
By laying out in Phoenix, JDI Ventures further deepens its influence and participation in the AI track.
7. Wicrypt
Wicrypt is Africa's first blockchain-based decentralized wireless infrastructure project and has successfully received funding from Microsoft and Google Cloud. It has deployed over 1,100 hotspots in more than 30 countries, allowing individuals and businesses to share their online connections and receive token rewards based on usage statistics.
JDI Ventures not only supports Wicrypt financially but also collaborates with it in hardware, jointly promoting global development and popularization in the DePIN field to drive the reduction of the global digital divide.
8. Meson Network
Meson Network is a decentralized CDN that uses Web3's incentive system to collect a large amount of public data in a decentralized manner, and will become the foundation for distributed storage, computation, and emerging Web3 Dapp ecosystem data transmission.
In simple terms, it has created a distributed network of IP and bandwidth resources by aggregating idle IP and bandwidth resources from individuals and distributing them to users with specific needs based on specific rules.
Currently, Meson Network has a global cumulative bandwidth of over 10Tbps and has over 20,000 mining nodes, demonstrating the potential of blockchain technology in innovating traditional producer-consumer relationships to incentive-based network models.
Conclusion
The above 8 DePIN projects cover different sub-sectors, and JDI Ventures' layout goes far beyond this. Exploration and layout in the direction of green energy are also underway, such as investments in the decentralized energy internet Arkreen and the virtual power plant Starpower. Future actions by JDI Ventures in the DePIN field will be disclosed gradually.
In summary, as shown in the review and layout of the DePIN track in 2023, as well as the introduction of JDI Ventures' layout in 2023, DePIN is not just a fleeting meme, but a narrative that has undergone a considerable period of brewing.
The imagination of the DePIN narrative lies in its ability to serve as the common denominator between the Web3 world and the real world—it is the reflection of Web3 into the real world and also the gateway for the real world to enter the Web3 world.
The DePIN track, due to its industry attributes as infrastructure, is fundamentally different from tracks such as GameFi and DeFi, which are directly targeted at crypto users, in terms of information transmission. Most of the information is transmitted within the industry, among relevant institutions, project parties, and mining communities. Therefore, the sudden outbreak of the DePIN track is completely unexpected in the crypto market, yet it is also within reason.
So, as we stand at the beginning of 2024, what are the signals and trends worth paying attention to in the DePIN track?
The information and logic mentioned above have already explained why the DePIN track erupted at the end of 2023. The new signal worth noting now is that both overseas family offices and domestic physical enterprises have a strong interest in the DePIN track.
First and foremost, this is because they see the major trend of Web3. Another crucial factor is that they can easily understand the business and commercial models of the DePIN track (compared to DeFi, GameFi, and even memes). Their funds have begun to flow into the DePIN track through various channels such as personal angel investments, investment institutions' LP, and hardware procurement, and this is a trend that will continue for at least six months.
As a global leader and promoter of the DePIN track during the last bull market, JDI Ventures has continued to focus on laying out the DePIN track in 2023. With the imminent major outbreak of the DePIN track in 2024, JDI Ventures is willing to contribute its rich experience in DePIN construction, and help DePIN projects in terms of funding, hardware, supply chain, and community services to enter the trillion-dollar market.
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