Cryptomeria Capital Will Introduce the DePIN Report On April 17. A Sneak Peek Reveals 95% of Businesses Prioritize Multi-Cloud Strategies

by Alisa Davidson

Published: April 16, 2024 at 6:20 am Updated: April 16, 2024 at 6:20 am

by Anastasiia O

Edited and fact-checked:
April 16, 2024 at 6:20 am

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By the end of 2023, prominent cryptocurrency-focused venture funds highlighted the Decentralized Physical Infrastructure Networks (dePIN) market as one of the most promising avenues for 2024. 

While the real-world economy boasts a valuation in the hundreds of trillions of dollars, the current total addressable market for the DePIN sector stands at approximately $2.2 trillion, with projections indicating a potential surge to $3.5 trillion by 2028. By utilizing blockchain technology, token incentives, and Internet capabilities, DePIN initiatives are poised to tackle some of society’s most fundamental challenges.

Exploring the dynamic landscape of dePIN, Cryptomeria Capital is set to unveil its latest comprehensive report, “The State of DePIN 2024,” this week, on April 17th, during the Hack Seasons conference in Dubai. This report highlights the crucial importance of this approach, ushering in a new era of infrastructure development characterized by increased efficiency, equity, and community engagement.

The venture capital’s new report is the most comprehensive study in the industry on this topic, offering an in-depth analysis of the sector, project comparisons, and a wealth of invaluable insights. Delving into the intriguing realm of the DePIN, it provides an overview of its infrastructure and an ecosystem map exploring numerous projects across domains in detail, including data storage, cloud computing, and wireless and sensor networks. Additionally, it examines the integration of DePIN with AI and zero-knowledge (ZK) technologies and sheds light on the forthcoming developments in its landscape.   

The report incorporates insights from prominent conglomerates such as Filecoin, Arweave, Storj, Sia, BNB Greenfield, ZUS (formerly 0Chain), OORT (formerly Computecoin Network), 4EVERLAND, CESS (Cumulus Encrypted Storage System), GlacierDB, spanning storage solutions. It also includes Render, Theta, Akash, HOLO, Livepeer, Golem, Io.Net, Dynex, Gensyn, and Web3mine, covering computing domains. Additionally, it features Helium, Althea, Wayru Network, FOAM, WiFi Map, Andrena, Drop Wireless, Chirp, Grass (Wynd Network), and Meson Network, focusing on wireless networks. Hivemapper, DIMO, WeatherXM, Natix, GEODNET, Silencio, Soarchain, Spexigon, Drife, and Arkreen represent sensor networks. From the realm of ZK, the report covers zkSync Era, Scroll, Starknet, Polygon zkEVM, and Manta Network. The report’s media partners include Metaverse Post and Hack Seasons.

Originally introduced by Alex Mukhin, Co-founder and Managing Partner at Cryptomeria Capital, during the 2024 DePIN Global Hardware Summit in Hong Kong, organized by JDI Global last week, the State of DePIN 2024 has already garnered significant interest from enthusiasts, investment institutions, and projects within the Web3 community. The full report is scheduled for release on April 17th at the MPost’s highly anticipated conference, Hack Seasons, which will be hosted in Dubai as part of the TOKEN2049 Dubai conference.   

A Deep Dive into the DePIN Landscape

The DePIN sector stands at the forefront of revolutionizing cloud data storage and addressing the current challenges. According to the report, in 2023, over 60% of corporate data had transitioned to cloud storage, marking a significant increase from the 30% recorded in 2015. This upward trend illustrates the sustained momentum in cloud adoption, which has doubled in just seven years. The ongoing growth underscores businesses’ increasing reliance on cloud technologies for data management and storage solutions. Moreover, the report finds that an overwhelming 95% of businesses now prioritize multi-cloud strategies, highlighting the critical role of information security in contemporary business models.

Additionally, decentralized computing is poised to revolutionize cloud computing by tackling the high costs, scalability challenges, and security issues inherent in traditional cloud services. According to the report, the surge in demand for computational resources driven by AI and machine learning (ML) underscores decentralized computing platforms’ cost-effectiveness and performance advantages.

The advent of blockchain technology has introduced a new era characterized by enhanced security, privacy, and innovation. The “Wireless” DePin segment, representing Decentralized Privacy and Integrity, signifies a paradigm shift in the perception and security of wireless networks. The report underscores key trends for 2024, including adopting Open RAN for more flexible and efficient networks, AI integration for optimized network operations, and further densification of 5G to meet low-latency demands.

Delving into the domain of Sensor networks crucial to the Internet of Things (IoT), the research indicates substantial growth, particularly evident since 2020, when IoT devices outnumbered non-IoT devices. This surge signifies a trend toward increased device interconnectivity, influencing sectors such as healthcare, smart cities, and transportation. The navigation and mapping industry’s potential for expansion is noteworthy, with emerging applications surpassing traditional services like Google Maps by providing real-time updates and faster mapping capabilities.

The study examines projects that leverage blockchains, including Solana, Polkadot, Polygon, Ethereum, Cosmos SDK, Layer 1s, and dePIN-focused blockchains, as an infrastructure layer. This is essential as the network choice significantly influences the effectiveness, security, and cost-efficiency of DePIN projects.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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Alisa Davidson

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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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