Enterprises Need DePIN More Than DePIN Needs Enterprises

In a few weeks, Lisbon will again play host to one of the largest tech conferences in the world: WebSummit 2024. Like any good tech conference, it’s an opportunity for builders, enterprises, and investors to come together to scout and showcase innovation, to learn, and to gather market feedback that helps drive the next wave of the future.

In the rapidly evolving landscape of technology, the integration of DePINs, or Decentralized Physical Infrastructure Networks, represents not just an innovation but a paradigm shift for corporate giants. DePINs are blockchain-powered ecosystems where physical infrastructure like energy grids, wireless networks, or transportation systems are managed and expanded through token incentives, democratizing access and control over essential services.

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

Helium network, which launched its mainnet in 2020, is a notable early example of a community-driven wireless network that rewarded its citizen-network-suppliers significantly while reducing costs and increasing accessibility for users (in certain geographies anyway). Its Helium Mobile offering, while still augmented by TMobile, continues gaining traction and was recently cited to have 335,000 subscribers. Many are also familiar with early decentralized storage networks such as Filecoin, Storj, and Arweave, which are becoming more essential to the advancement of AI due to their scalability, cost efficiency, and decentralization.

Years after the first DePINs hit the market, we stand at the crossroads of digital transformation, with DePIN emerging as a critical piece of infrastructure for enterprises looking to leap forward in efficiency, security, and operational integrity. Here's why corporations need to be adopting DePIN.

Decentralization for enhanced security

The conventional centralized models of infrastructure management are fraught with vulnerabilities, from cyber-attacks to single points of failure. I don’t think I need to remind anyone of how the Crowdstrike incident earlier this year crippled the airline industry. DePIN, by leveraging blockchain technology, introduces a level of security that is both robust and inherently resilient.

Increased transparency combined with smart contract execution allow enterprises to decentralize, automate and ultimately de-risk the hosting of economically important infrastructure. This is because each node in the network holds a copy of the transaction history, which creates redundancy and makes unauthorized activity virtually impossible. Furthermore, keeping infra out of the control of monolithic third parties means political and geopolitical risk is mitigated, which should resonate deeply with some large corporations, or perhaps more likely citizens who should be more wary of public control of private industry.

Cost efficiency and operational scalability

For corporations, cost is king. DePIN technology promises a reduction in operational costs through the elimination of intermediaries and by fostering a model where infrastructure can be community-driven or self-sustaining through token economics. This means enterprises can scale their operations without proportional increases in infrastructure costs (an inherent pay-as-you-go design) DePIN could revolutionize how companies think about infrastructure, offering scalable, on-demand resources without large investments or capital requirements.

By offering services like localized computing power or data storage in places where infrastructure is notoriously bad, companies can tap into markets that are otherwise too costly or slow. Think of a more decentralized and smaller-scale version of Starlink. Enterprises always want to create or invest in frameworks that bring them more consumers. DePIN is the most efficient way to do this. Innovation will particularly benefit sectors like gaming, AI, or any data-intensive industry where decentralized solutions offer both efficiency and cost benefits..

Enterprise's Role in DePIN's Growth

The involvement of major corporations like Lufthansa and Deutsche Telekom in DePIN, as seen with their launches on the Peaq network, signals a powerful endorsement of this technology. Their participation isn't just about adopting new tech; it's about setting industry standards and influencing how other sectors might view and integrate DePIN. This kind of endorsement catalyzes further collaboration, integration, and innovation across industries, potentially leading to what could be described as the “DePIN era” in corporate technology adoption.

Outlier Ventures, along with Peaq, Impossible Cloud, and Acurast, are putting on a DePIN Day at Web Summit 2024, on Tuesday, November 12th.

We invite all enthusiasts, and especially corporations who are interested in DePIN, to join us in exploring and discussing why adoption of DePIN isn't just about keeping pace with technological trends; it's about thinking two steps ahead and being a technology leader.

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.