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As data has become synonymous with “digital gold,” it’s no wonder the demand for access to real-time data is skyrocketing. On the same side, as Web 3 or decentralized technologies are emerging, the shortcomings of centralized services within the Web3 stack are being addressed. 

Streamr is among such decentralized projects that provide a real-time data infrastructure as it allows data to travel via a global peer-to-peer network that is scalable, robust, and permissionless. Streamr sets itself apart through the use of blockchain technology for data sharing. 

Streamr’s real-time data delivery system operates through the help of a P2P or a Peer-to-Peer network in a pub-sub fashion. Pub-sub or Publish-Subscribe is an asynchronous communication model that supports scalable and reliable communication. 

Similar to BitTorrent, Streamr is a network of nodes that can pipe messages to one another without intermediaries. However, the key difference between the two is that Streamr is for real-time data streams, whereas BitTorrent does not operate real-time data streams. 

Background of Streamr Launched in 2017, Streamr was launched by the founders of Streamr, who believed there needed to be a way to connect billions of devices with real-time data through the help of a decentralized network. 

The importance of real-time data must be addressed, particularly due to the growth of DePIN or Decentralized Physical Infrastructure Networks. This is because DePIN helps to move the work of large data centers to non-technical people around the globe, ultimately bringing in huge benefits, particularly of trust. 

DePIN is owned and operated by users, making it neither a public nor a private infrastructure. DePINs allow for building real-time data ecosystems, giving stakeholders the power to add value and additional services that help to support the ecosystem. 

At the same time, for the development of a decentralized future, real-time data is needed as this helps to power decentralized applications or dApps. DApps need external data to function, and if they remain dependent on the existing centralized data networks, dApps will eventually become liable to all the existing problems that are present in Web 2. 

These liabilities include user data being susceptible to cyber attacks, power remaining in the hands of a few, a complete lack of robustness, misuse of private data, monopolistic positions that cause inflated costs, and the risk of a single point of failure. 

These issues bring serious concerns to not only the development of decentralized applications but the entire decentralized internet or Web 3, where the promise is to give users more power over their data through decentralization. 

Development of StreamrWhile an ecosystem of decentralized P2P networks already exists, Streamr development takes a completely different approach, focusing on real-time data. Through the help of this real-time data, anyone can publish events on data streams, and anyone can subscribe to streams. 

First and foremost, Streamr is a P2P network that utilizes a Pub-sub messaging pattern, including one-to-many, many-to-many, or many-to-one streaming. This allows DePIN builders to build in a UP, ACROSS, or BROADCAST fashion, depending upon the different use cases.

For example, DIMO, which is an open and user-owned IoT network that uses Streamr, is built in a UP fashion from Miner to Network. With the help of DIMO, developers can easily access barometric pressure, temperatures, and other weather-related data in real-time. This gives developers who require weather data to power their applications an ideal solution.

In the future, DIMO plans to build in an ACROSS fashion, giving miners more flexibility to connect. This will help to ensure that DIMO’s data stream is completely decentralized and not owned or controlled by any centralized authority. 

Streamr 1.0, which is the final milestone in Streamr’s original 2017 roadmap, means when it is implemented, it will lead to the implementation of the network tokenomics, meaning the network is fully decentralized. Anyone can now set up an operator node, and delegators can now delegate their tokens to the operator node. 

The Network Tokenomics of $DATAWithin the Streamr Network, both data publishers and subscribers are Nodes in a P2P network. 

Nodes that are involved in a stream of data connect one another in a certain way, ultimately helping to form the stream’s topology through which the main function of Streamr Network can be performed. 

Therefore, every node that joins a stream does two things: it consumes the data and relays it onwards to other nodes interested in the stream. 

To incentivize good nodes who ensure data flows robustly and stably, the honest and stable nodes are paid, forming the basis of Streamr Network Tokenomics. Streamr tokenomics works similarly to the gas price of Ethereum. In Ethereum, users are constantly in a battle to incentivize miners to execute their transactions faster. 

On Streamr, users have to pay less or nothing at times if they are happy with the best-effort performance. They can also pay to incentivize nodes to make the stream more robust and secure. 

However, it is important to note that Streamr Network tokenomics is not based on buying more access to data on The Hub. On the Network, users pay for infrastructure costs for data delivery. On the application layer, users pay for access to data content. 

Users can use the Network for data delivery without using The Hub, similar to a person who can send and receive packages without ordering products or services from online stores. 

Streamr Stack The Streamr infrastructure consists of a tech stack that helps to connect and incentivize computers within a global peer-to-peer network. The entire stack is built on top of a decentralized transport layer, which helps to ensure resilience, fault tolerance, robustness, transparency, openness that comes with decentralization, and community building. 

To facilitate their goal, the Streamr stack offers the following multilayered technology stack:

Streamr HubThe Hub or Streamr Hub serves as an entry point for developers, helping them to create and connect with live streaming data. The Hub is a portal that leads directly into the Streamr Network and is a step forward towards a more consciously open data approach, all while ensuring it does not undermine any Web3 ethos. 

Other than DIMO, there are several other projects on the Hub. The first includes Polygon, in which Polygon Validators are sharing their validator node’s live metrics. The second includes EthWatch, which broadcasts the live stream of Ethereum and Polygon contract events. 

Other projects that are built using Streamr include Swash, Redstone, and Unbanks. In the DePIN space, they include MapMetrics, IoTeX, and Peaq Network apart from DIMO. 

As the demand for AI is growing, Streamr hub has 90% of the features of an AI marketplace. The smart contracts can be extended to allow users to publish prompts that can get access to the output of a pay-to-access remotely run model.  

In the end, the goal of the Streamr hub is to facilitate the discovery and the delivery of what type of data exists out there, give users a comprehensive toolkit for its creation along with its management, and make it simpler for the users to subscribe to a data stream of their choice. 

Streamr Network Streamr Network acts as the “transport layer” of the entire Streamr stack. The network handles all messaging in a decentralized data pipeline. This layer consists of primitives known as events & streams and broker nodes.

The Streamr Nodes operate on primitives, and the collection of broker nodes consists of a P2P network that handles the decentralized messaging. The infrastructure layer, on the other hand, uses the Ethereum stack for its operations as node coordination requires robust consensus, which the smart contract implements. 

Streamr network has multiple different parts, all of which play an important role in transporting data. These include: 

EventsAn event is a timestamped piece of information that contains headers and content. Headers provide the metadata of the vent, which includes its timestamp, content type, and origin. The content gives information on what format the content is in. Both are encoded in a binary format. 

StreamsAll of the events that occur are a part of the stream. They are grouped in a logically relatable manner and stored in an ascending order. The entire metadata is stored on Ethereum’s smart contract. Streams carry five different pieces of information, namely user ID, name, description, owner, and permissions. 

Publish-SubscribeThe data delivery in the Streamr network follows the publish-subscribe paradigm. Events that occur are promptly delivered to all those who are authorized and subscribed to the stream. This can be limited depending on what kind of access the user has. 

Partitioning (Sharding)To achieve scalability, not all the Streamr nodes handle all the traffic. This is because the event traffic within the whole network is divided into several independent parts called partitions. Each broker node handles traffic that belongs to a different set of partitions. 

Node CoordinationStreamr uses node coordination, which acts as a key coordinator for the assignment of network partitions to broker nodes in the network. Node coordination also helps to maintain changes when nodes appear and disappear. Streamr network uses its underlying Ethereum network to establish consensus for node coordination in the P2P network. 

IncentivizationStreamr incentivizes Operators (who act as the miners on Streamr) to do two things: report the checksums for their assigned partitions to the network and deliver the data to any smart contract subscribers. To incentivize, Streamr sends them $DATA. 

Event PersistenceFor Streamr to turn its entire network into a decentralized time series database, the events in data streams persist in the P2P network. The achieved decentralization allows the Streamr network to achieve greater robustness, fault tolerance, anonymity, and lower costs. 

Data ProvenanceTo ensure hackers do not manipulate data for their monetary advantage, the Streamr Network cryptographically signs a private key. This helps to attest to the data provenance and ensures that the events on the network always carry a signature that can be verified. 

Data ConfidentialityAs anyone can participate in the Streamr network by running a node, all of the event payloads of non-public streams in the Streamr network are encrypted. This encryption is done with the help of asymmetric key cryptography. Such an approach, combined with the help of encryption, brings safety. 

Streamr Smart ContractsWhile several Ethereum-based smart contracts support the Streamr Network and The Hub, the Streamr Network also uses its smart contracts. These smart contracts help to improve coordination, permissions, incentivization, and integrity checking. 

StreamThe Stream smart contract is the main smart contract that holds static information and carries the permissions for the stream. 

Stream RegistryThe stream registry contract holds important information about the known streams in the network. 

Network CoordinatorThe network coordinator contract assigns partitions to broker nodes. These Streamr Nodes register themselves with the coordinator and receive updates on the network state by looking at the smart contract. 

$DATALastly, in the Streamr stack is the $DATA token, which is a means of compensation between the data producers and consumers. It’s an ERC 20 token that ensures that the payments are handled securely. It also provides interoperability with different wallets and other tokens. $DATA has the following main jobs: 

Implement a monetization mechanism for data producers, which helps them act as a data vendor to step in wherever necessary and help the community grow to everyone’s benefit. 

$DATA is also an incentive for maintaining and operating a P2P network, as it takes resources, time, computing power, and communication bandwidth. Without such an incentive, Streamr Nodes will not participate, and the entire P2P network in which the real-time data runs will collapse. 

The primary application of $DATA includes when developers and subscribers pay for the data they want to get access to using $DATA. Additionally, data producers and the network participants are reimbursed for their participation with $DATA securely and automatically. Tokens can also be earned by running a particular node and then staking $DATA tokens on that node. 

Streamr reimburses staking awards through the help of a supply inflation process, which was decided through the help of the project’s governance. In Streamr 1.0, delegated staking was introduced, which allowed token holders to not only run a node but also stake their $DATA in return for a reward. 

Stream sponsorships are the final milestone of the Streamr project, as they bring the long-awaited incentive layer that fully activates the $DATA token economy. As streams operate an overlay of the network, stream Sponsorships attract new nodes to join the network. With the help of this, the Streamr network will become more robust from external attacks.

It will also help to prevent the data loss which is caused by node churn. When churn nodes consistently join and leave the stream, it adds instability to the topology, thereby leading to disruption in the message flow. 

In other words, through the help of Sponsorships, Streamr nodes will become bulletproof. 

Sponsorships work through the help of a smart contract that will release funds over time to operators who have joined them. Sponsors will fund sponsorships, as they will be the ones to create them by defining the terms of engagement. 

The smart contract will help to ensure the agreed terms are fulfilled, and then DATA tokens will be transferred. They must deliver on their promise to avoid losing their tokens. 

Operators and DelegatorsOperators are Streamr node runners. Operators can join or leave a sponsorship at any given time as long as they agree to the penalties while signing up. Delegators, on the other hand, are the passive liquidity providers for Operators. In return, they will earn revenue from well-performing operators. 

The lifecycle of the Stream sponsorship will comprise 5 different steps and is as follows: 

Firstly, a sponsorship smart contract will be created, which will describe all policies and parameters. Secondly, sponsors will pay DATA tokens on the agreed terms. Thirdly, operators will join sponsorship by staking on it. Fourth, Operators will join the sponsored stream network and relay data in the stream. 

In the last step, if or when the sponsorship runs low on tokens, they can either be “topped up” or the reward will be given based on the configured emission rate. This process will ensure sponsorship contracts act as a decentralized mechanism that helps to manage a stream of earnings distributed within different operators. 

Advantages over competitorsThe unique selling point of Streamr is that it provides a real-time data infrastructure of the decentralized web or Web 3, which already sets it apart from its competitors. There are several other advantages that Streamr brings, but other decentralized data storage projects are unable to do so. Some of these include: 

Ease of miningUnlike Filecoin, which is one of Streamr’s primary competitors, users have an ease of mining and become a part of the network. In the case of Filecoin, users have to purchase expensive hardware. In addition, users also need to have some experience in systems deployment and administration, which makes it extremely difficult for non-technical people to enter.

In the case of Streamr, the barrier to entry is kept as minimum as possible as the project believes that’s the only way for the blockchain ecosystem to grow. 

Fair token distributionThere’s an ever-existing fear of FIL, which is the native token of the Filecoin network to be dumped by its advisors. This is because, at the time of the launch, almost half of FIL supply was given to the advisors at half its existing price. In fact, Filecoin community members alleged 2020 token dumping when an unknown account received 1.5 million FIL tokens. 

Meanwhile, Streamr has ensured the supply of its $DATA is done reasonably. 

Non-DiscriminativeAnother key area that helps Streamr set itself apart from other projects is that it maintains a neutral stance on data and content. 

On the other hand, Arweave has a Democratic Content Policy, which creates a potential conflict as network nodes have the power to issue a blacklist against certain data types, thus hindering the idea of an “open economy.” 

Emphasis on adequate user interfaces & appropriate informationStreamr has a major focus on developer user interfaces that are much easier to use and are targeted toward people who have a relatively less technical background. Siacoin, which is one of its main competitors, has yet to offer adequate user interfaces. 

A similar issue is also present with Arweave, where the project developers are unable to provide in-depth information that can help developers when they are building on their stack. What Streamr offers is unique as it provides in-depth, dense knowledge in a relatively easy-to-navigate manner to ensure developers do not face any issues. 

Analysis of StreamrThe importance of data, especially one that runs in a combination of a real-time data market and the data pipeline, all while remaining decentralized, is transformative for the entire Web3, particularly because this gives a decentralized ecosystem exposure to data that has never existed before all while remaining true to decentralization. 

Streamr maintains its tech stack layered and modular to allow non-tech individuals to participate in the network in one capacity or another. 

It also hosts a publish-subscribe mechanism, which is a framework for exchanging messages between publishers and is widely used in Web2 due to its reliability. Streamr uses the same framework while making it decentralized, spread across different nodes rather than concentrated in one area, similar to centralized technologies. 

To ensure transactions are scalable, with minimum latency, Streamr divides its throughput scales linearly. This allows the network not just to scale but also to process millions of events per second. 

Streamr also allows users to sell their data directly, which gives them the power to monetize their data, all while knowing which companies and industries are using their data. Through the help of this transparency, users will be empowered, unlike in a centralized system where power is monopolized. 

Anyone who owns a personal computer or a laptop can become part of the Streamr network by becoming a node operator and earning yield on staked tokens. 

Emerging use cases of StreamrProving its versatility and adaptability, Streamr has the potential to revolutionize different industries and applications. Some of the emerging use cases of Streamr include:

[1] Video StreamingTraditional streaming services often need help with bandwidth limitations and central server outrages. Streamr’s P2P network can help distribute video content more efficiently by reducing latency as stream viewers become P2P distribution nodes as they consume the stream. This will help to improve the user experience. 

[2] Decentralized AIStreamr helps to provide a strong infrastructure for real-time data collection and distribution. This is critical for training AI models, ultimately ensuring that AI systems can function without the hurdles present within centralized data servers. This helps to enable more efficient and scalable AI solutions. 

The Streamr developer community has already developed the next generation of AI technologies. Some of these AI technologies include the Streamr node AI plugin, AI video distribution, LLM routing, AI chat, Verifiable AI, AI Audits, and AI data crowdsourcing. 

As the need for decentralized data exchanges has become more apparent, Streamr can provide help to the entire Metaverse ecosystem. This can be done by providing a foundation for real-time data transmission that will enhance the interactivity and responsiveness of the virtual metaverse worlds. 

[4] Web 3 GamingAs the importance of real-time data exchange and decentralized infrastructures is maintained in the fast-growing world of Web 3 gaming, Streamr provides a strong solution. It offers a platform where game developers can build decentralized gaming experiences with real-time player interactions and data exchanges. 

[5] dApp MessagingDecentralized applications (dApps) at times rely on centralized servers for messaging, which leads towards a contradiction of Web 3 ethos. Streamr brings a solution as it can provide a decentralized messaging platform that enables dApps to embrace decentralization. 

Final Thoughts Decentralization is a much-awaited answer that users are looking for due to their declining trust in large corporations. With data becoming an integral part of our day-to-day lives, it is only necessary to ensure it does not become monopolized in the same manner as that of several other industries. 

Projects like Streamr bring an important answer to the problem, giving users the utmost possession and freedom over their data. Streamr allows users to access data in real-time, which empowers the existing infrastructure by allowing it to become more decentralized. 

Streamr is bringing this power transfer to individuals, all while improving user privacy, resilience, fault tolerance, and efficiency. This will help the future of the internet to become more connected and decentralized, with the users having more freedom over their data and power over important decisions.

Links:

Website | Twitter | Discord | LinkedIn | YouTube | Telegram | GitHub | LinkedIn

Updated Jul 16, 2024, 9:00 p.m. Published Jul 16, 2024, 7:14 p.m.

5 min read

The automotive industry is at a crossroads. We’re racing towards a future of electric vehicles and autonomous driving, yet something meaningful seems to be slipping away: the joy of car ownership. The passion and personality that once defined car culture is fading, replaced by a less exciting world where vehicles are mere transportation devices.

This op-ed is part of CoinDesk's new DePIN Vertical, covering the emerging industry of decentralized physical infrastructure.

But what if the unlikely combination of blockchain technology and the automotive world could reignite that spark?

That's where decentralized physical infrastructure networks (DePIN) come in. While much of crypto has been overly focused on speculative trading and other exclusively digital products, DePIN networks connect blockchain to the physical world. From Helium's decentralized wireless networks to Render's distributed GPU platform, innovators are finding ways to build better infrastructure while making the ownership of physical assets more rewarding, more engaging, and frankly, more fun.

So, how does this relate to cars? Enter DIMO, a DePIN network built to improve the car ownership experience with cutting-edge vehicle integration technology. It works by giving vehicles an on-chain identity and putting owners in control of the car and its data to unlock entirely new services, experiences and economic opportunities.

For most people, their car is the second-largest purchase they'll ever make after their home. Each year, it’ll cost them about $12,000, require painful pilgrimages to the DMV, and maybe even sabotage a trip with a surprise check engine light or flat tire.

We have the opportunity to not just revolutionize industries, but to fundamentally change how people interact with and derive value from the world around themIt’s 2024. Modern technology should have made ownership cheaper, easier and more rewarding by now. Not only should you be saving way more money on expenses and automating all the hassle, you should be earning money by monetizing your vehicle data, something experts say could be worth $800 billion by 2030, and you should have access to a rich ecosystem of apps and services built for you and your vehicle. The siloed approach that automakers have thus far pursued in implementing smart vehicle technology has held this future back. It has been a disaster for security, privacy and openness.

Imagine earning crypto tokens for simply owning a car, while the data you opt-in to sharing contributes to improved traffic management, better urban planning, cheaper insurance and a better eventual trade-in value for your car. Suddenly, your depreciating asset becomes a source of passive income.

But DePIN's potential goes beyond just financial incentives. It's about revolutionizing the entire ownership experience. Remember when customizing your car was a point of pride? Your Dad might have spent his weekends tinkering under the hood of his 1987 Firebird. There’s probably a few Polaroids of him posing in front of it hidden inside a shoebox in your basement.

DePIN could bring back that sense of personalization and community, but in a distinctly modern way. Imagine a world where your car has an on-chain digital twin, allowing you to customize its appearance, participate in virtual car shows or even race digital versions of your real-world vehicle. Your car becomes a key to a whole new ecosystem. This gamification of car ownership could extend to the real world, too. Blockchain-based systems could reward safe driving, optimal route-taking or real-world carbon offsets. Suddenly, your daily commute becomes a game, with valuable rewards at stake.

But perhaps one of the most exciting potential use cases for DePIN in the automotive world is the transformation of commerce and registration. In our blockchain-enabled future, receiving the title, financing your car, insuring it, and registering could be done in seconds, whether you’re buying new from a dealer or from a random guy named Bert on Craigslist.

Your car will have its own wallet, able to pay for fuel, tolls or Starbucks. No waiting an hour at the DMV just to be told, “you have the wrong kind of paperwork, come back tomorrow.” No more pulling out quarters or downloading a bad government app just to pay for street parking. It would be impossible to build a system that is open and trusted enough that can coordinate all of these complex transactions, without blockchain and DIMO.

Read more: Scott Foo - Welcome to DePIN Summer

Of course, for DePIN to truly succeed in the automotive space and beyond, it needs to overcome the issue of accessibility. For too long, the crypto world has been a tech club, with high barriers to entry in terms of technical knowledge and financial risk. DePIN projects need to focus on creating user-friendly interfaces that hide the complexity of blockchain technology. The average car owner shouldn't need to understand smart contracts or private keys to benefit from these systems.

This isn't a pipe dream. The groundwork is being laid at DIMO today, where nearly 100,000 cars are connected and the infrastructure that will make scenarios like this a reality is coming together.

For those of us passionate about both technology and the physical world, it's an exciting road ahead. We have the opportunity to not just revolutionize industries, but to fundamentally change how people interact with and derive value from the world around them.

The principles that DePIN is applying to vehicles can be extended to virtually any physical asset. Your home could earn tokens by contributing to a decentralized energy grid. Your smartphone could be rewarded for participating in a distributed computing network. The key is to create systems that offer immediate, tangible benefits to users while building towards a more decentralized, user-centric future. It's about using blockchain technology not as an end in itself, but as a tool to enhance our interaction with the physical world.

So, the next time you get behind the wheel, imagine a future where your car isn’t just about getting from A to B, but a seamless extension of your daily life and your personality in the real world and online. That's the future we're building. And who knows? It might just make owning a car cool again.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

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The rise of artificial intelligence (AI) and generative AI technologies has been meteoric in the past two years. For some tech-savvy people, every morning begins with the help of AI, from the smart alarm that tracks their sleep cycle to the news app that curates articles based on their interests.

But behind these seamless conveniences lies a hidden reality – these technologies are part of a growing energy crisis. As AI technologies like generative AI advance, they are not just transforming our lives; they’re demanding a huge share of the world’s electricity.

Impact of AI on Energy InfrastructuresThe challenge is stark. As one of the most energy-intensive modern IT endeavors, AI systems require considerable carbon emissions and electricity. Indeed, the world might not be ready for their demands.

In 2023, the world became acquainted with the implications of generative AI, and by 2024, its utilization in various sectors magnified. Hence, data centers that power these AI models are becoming massive consumers of electricity.

Indeed, Forbes noted that GPT-4 required over 50 gigawatt-hours to train—equivalent to 0.02% of California’s annual electricity production. Moreover, it requires 50 times more energy than its predecessor, GPT-3.

The statistics are staggering. Globally, data centers and their transmission networks now contribute to 3% of global energy consumption, emitting as much carbon dioxide as Brazil.

Moreover, the escalating energy requirements show no signs of abating. According to an International Energy Agency (IEA) projection, global electricity demand will surge from 460 terawatt-hours (TWh) in 2022 to 1000 TWh by 2026.

Read more: How To Build Your Personal AI Chatbot Using the ChatGPT API

Global Electricity Demand Projections. Source: IEAIn the United States alone, the power demand from data centers is expected to increase from 200 TWh in 2022 to 260 TWh by 2026, marking a 6% share of the country’s total power usage. Projections suggest this demand will double by 2030.

Amid this backdrop, Ayush Ranjan, CEO of Huddle01, highlighted in an interview with BeInCrypto the urgent need for solutions like DePIN (Decentralized Physical Infrastructure Network).

“AI data centers require a substantial amount of electricity for computation and cooling. If AI applications continue to grow at the current rate, we will see a significant strain on both local and global energy grids that will prove unsustainable. This burden will continue to increase as AI systems get more and more complex with time. This will again lead to higher emissions and grid instability,” Ranjan explained.

The geographic clustering of data centers compounds the challenges. For instance, Northern Virginia hosts the largest hub of data centers globally, consuming electricity equivalent to that of 800,000 homes. This concentration creates dangerous fluctuations in power demand, posing severe risks to energy infrastructures.

How DePIN Solves the ChallengesIn response, DePIN offers a promising solution by leveraging underutilized hardware resources to distribute computational tasks more efficiently. By decentralizing energy consumption and incentivizing the use of edge computing, DePIN networks could significantly alleviate the energy burden imposed by AI, offering a pathway to more sustainable and democratized access to AI resources.

Ranjan further elucidated that DePINs distribute energy consumption and workload, easing the burden on any single point. Instead of relying on huge centralized data centers, DePIN deploys multiple nodes—often utilizing underused infrastructure to offload computations closer to end-users.

“This reduces the workload on servers and spreads energy consumption more evenly across regions, easing the burden on energy grids,” Ranjan told BeInCrypto.

Currently, 84% of the data centers are concentrated around the United States, Europe, and China, making data transfers less energy efficient. However, edge computing, integral to DePIN, minimizes long-distance, energy-intensive data transfers typical of centralized data centers.

“Splitting the energy consumption across multiple devices and regions, reducing the load on data centers and energy grids by leveraging existing devices or resources to build the network will prove critical in solving this issue,” Ranjan affirmed.

Read more: What Is DePIN (Decentralized Physical Infrastructure Networks)?

Data Centers Distribution. Source: Synergy Research GroupDePin Projects Addressing AI’s DemandsAccording to Ranjan, several DePIN projects, like Filecoin Green, Akash Network, Render, and Grass, focus on addressing AI’s energy demands.

Notably, the Daylight Energy project, backed by prominent venture capitalist firm Andreessen Horowitz (a16z), aims to transform energy grid operations through distributed energy resources (DERs). This initiative enhances grid responsiveness and facilitates sustainable energy practices by leveraging real-time data from DERs such as solar panels and smart batteries.

Moreover, on September 10, Daylight Energy announced a partnership with DIMO Network to enable electric vehicles (EVs) to support power grids. This collaboration utilizes DIMO’s EV application programming interfaces (APIs) to integrate EVs into the energy management ecosystem, thereby facilitating clean energy usage and real-time energy management for all EV owners. 

DePIN networks also solve other challenges of centralized infrastructure, such as frequent outages. For instance, a recent IT outage involving Microsoft and CrowdStrike disrupted major services worldwide. However, DePIN networks are less susceptible to such outages because they do not have a single point of failure.

Currently, the total market capitalization of DePIN projects stands above $20.5 billion. Additionally, the total number of DePIN devices has crossed 18 million. However, DePIN still faces scalability challenges as the mainstream adoption of these networks requires high computational power.

“Many DePINs rely on a mix of devices, from low-powered edge devices to small-scale data centers. Scaling the network and coordinating the deployed resources to match the computational power of a centralized data center remains a formidable industry challenge,” Ranjan noted.

Read more: Top 10 Web3 Projects That Are Revolutionizing the Industry

DePIN Market Cap, Volume, and Total Devices. Source: DePINscanHowever, while the idea of DePIN rescuing the world from a global energy crisis remains nascent, further innovation and adoption are essential. Ranjan believes that token incentives can help bring more adoption.

“Because of hardware limitations of edge devices to handle AI workload, wide adoption is crucial for any DePIN to scale and see a mainstream use case. Token incentives help drive intent to use and participate,” Ranjan concluded.

Indeed, as AI’s energy demands soar, DePIN offers a vital solution by decentralizing the computational load. It could substantially reduce the strain on global power infrastructures.

DePIN networks promise a more sustainable approach to managing the rising energy requirements of advanced AI systems by harnessing underused hardware and edge computing. This strategy could potentially avert an energy crisis and foster more equitable access to technology.

In brief DIMO has established a joint venture with Hakuhodo KEY3 to expand into the Japanese market. The platform's community will vote to approve funding for a 33% equity stake. Japan's connected vehicle market is projected to hit $1 trillion by 2030. Japanese automakers have spent billions developing connected car features, yet most vehicle data remains locked in corporate silos. Now, a U.S.-based blockchain startup wants to change that dynamic in one of the world's most advanced automotive markets.

Decentralized vehicle data platform DIMO announced today that it is expanding into the Japanese market through a joint venture with Web3 company Hakuhodo KEY3, targeting automakers who struggle with costly infrastructure development and tightening privacy regulations.

"Japan remains an integral part of the global market, with key automakers, Tier 1 suppliers, and mobility innovators all concentrated in the country," DIMO Japan CEO Ryo Hayashi said in a statement shared with Decrypt. "Our immediate focus is to expand the DIMO platform and allow local companies to integrate with it."

The move would help remove "infrastructure hurdles" for automakers, service partners, and third-party developers who are looking to "build and innovate" through their platform, Hayashi said.

Decentralizing software for vehiclesDIMO's decentralized physical infrastructure network (DePIN) operates like a marketplace for vehicle data.

Drivers maintain ownership of their information while automakers access aggregated insights to develop features ranging from real-time diagnostics to usage-based insurance.

Drivers connect their vehicles through DIMO's mobile app and earn token rewards for sharing anonymized data, creating a two-sided marketplace that incentivizes participation. DIMO claims it currently connects over 180,000 vehicles globally.

The timing appears strategic. Japan produces approximately 10% of the world's vehicles, including brands such as Toyota, Suzuki, and Honda, according to data released by the Japan Automobile Manufacturers Association in 2024. 

Meanwhile, the connected and software-defined vehicle market is projected to expand from $200 billion in 2024 to over $1 trillion by 2030, according to industry estimates.

For DIMO, this means automakers urgently need data infrastructure to capture revenue from software, making its entry strategic for entering one of Asia's fastest-growing automotive markets.

For Japanese automakers, the partnership addresses a critical pain point around "privacy concerns and high development costs," DIMO explained.

DIMO will work within local privacy regulations and adhere to the specialized needs of local OEMs.

The venture follows DIMO's decentralized governance model, requiring token holders to vote on major treasury decisions. 

The community will decide on June 16 whether to allocate $500,000 USDT and 4 million DIMO tokens for a 33% equity stake in the Japanese entity, ensuring that stakeholders directly approve strategic expansion rather than leaving decisions to executives alone.

Edited by Sebastian Sinclair

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