DePIN could hit $3.5T by 2028 as AI and blockchain combine to reshape infrastructure, says a new World Economic Forum report.
According to the World Economic Forum (WEF), the decentralized physical infrastructure network (DePIN) market could surpass $3.5 trillion within three years due to the increasing convergence of blockchain and artificial intelligence.
DePIN establishes decentralized networks by combining blockchain technology with community-owned physical infrastructure. Participants can contribute resources in exchange for cryptocurrency.
“This relatively new sector is expected to expand to $3.5 trillion by 2028, with over 1,500 active projects worldwide and a current valuation of $30 billion-$50 billion,” the report stated.
The emergence of decentralized physical AI (DePAI) is the most significant catalyst for the industry’s development, as it represents a “fundamental shift” in the interactions of AI agents with physical infrastructure and external data, according to the WEF.
DePAI, unlike centralized models, utilizes decentralized networks where users participate in machine learning (ML) processes through their daily activities.
Consequently, AI development is not restricted by centralized data sets.
Other industry leaders also anticipate a substantial market opportunity in DePIN, which is being driven by the increasing demand for decentralized wireless hardware connectivity.
Carlos Lei Santos, the co-founder and CEO of Uplink, stated in an interview with Cointelegraph that the DePIN industry is the most likely source of the next $1 trillion firm, which is being driven by the increasing demand for decentralized wireless solutions.
DePIN Is About To Change How Computers Work
The report further states that the future of Omni computing may be “reshaped” as DePIN adoption increases, as it facilitates a more distributed and resilient computing environment.
According to the report, the development potential of the DePIN sector is “demonstrated” by decentralized applications such as Bittensor and Threefold, which facilitate greater interoperability among its primary infrastructure components.
Threefold provides users with a sovereign digital identity system for Web3, while Bittensor facilitates the development of decentralized AI models, according to the report.
“This democratization of AI training ensures models remain diverse and contextually relevant while compensation contributors through blockchain-based inencitve systems.”
According to the crypto research firm’s January 2023 report, Messari also anticipated a $3.5 trillion DePIN market by 2028, representing a more than $1.3 trillion increase from the current addressable market of $2.2 trillion.
