Decentralized Infrastructure and Computation: How Does It Compare?

The infrastructure to meet the needs of emerging technologies like artificial intelligence, digital assets, and blockchain will be extensive and expensive. Decentralized physical infrastructure networks—known as DePIN—offer a cost-effective approach while creating a market from the bottom of the tech stack. These implementations in many cases outperform the computing methods being used today, but a decision to go with DePIN comes with several factors companies must consider before taking the plunge. 

As this Javelin Strategy & Research report notes, bitcoin mining has laid the path for computing beyond this network to succeed. By creating an incentive-driven model whereby miners must find the most energy-efficient sources, it has been able to truly scale and make the network stronger. Through DePIN, other networks can use this sort of computation to reap the benefits of cost reduction and greater network resiliency.

Key questions discussed in this report: 

• Why are decentralized physical infrastructure networks—DePIN—so significant?
• What are the key benefits of utilizing these decentralized networks?
• What are risks to be aware of in implementing DePIN?