Why is DePIN an important piece of infrastructure for Web3 to go mainstream?

As a member of the rapid evolution of the DePIN track, CESS continues to push the industry forward with technological innovation. Let's start with the DePIN concept and take a closer look at the development and potential of the track.

When it comes to the development of DePIN, let's briefly review its core concept.

According to the mainstream definition, DePIN stands for "decentralized physical infrastructure network", which describes a network that connects physical hardware devices to allow them to operate in a decentralized manner, and network operators can be rewarded based on Crypto.

The form of DePIN is not new to the past year or two, as early as 2014, when IPFS (InterPlanetary File System) was launched, it has maintained its development for nearly 10 years, and it has only recently been singled out as an independent track. According to the latest data from CoinGecko, its market size has reached $7.8 billion, becoming one of the hottest Web3 directions.

In the DePIN track, we can see a lot of interesting application plates, such as decentralized storage, decentralized rendering, decentralized computing and decentralized network, etc., it can be said that the infrastructure built in the rapid development of the Internet in the past 30 years can be reshaped through the concept of DePIN, and this track itself is a trillion-scale market, so compared with the current scale of billions, it is indeed a small thing.

However, what we are going to discuss today is not the future development potential of DePIN, but the convergence to an important point, why DePIN is an important infrastructure for Web3 to go mainstream.

If the token economy is the skeleton of Web3, the entrance to link real assets and digital assets must be a system composed of Token and NFT, but only assets can not make Web3 move towards a qualitative leap, and it also needs the ability to link real resources**, the BTC network has done it, but there is still more room for latecomers to be explored.

DePIN is a good extension of this concept, where people build a new network with their own or self-built physical devices, thus bringing real-world resources to Web3, not just the digital assets themselves, which is why we are seeing some traditional enterprises showing a strong interest in DePIN.

Another logic is that Web3 has been emphasizing "decentralization" since its birth, but after many years, people have found that in this so-called decentralized world (the author prefers to call it disintermediation), it will directly drag down the entire blockchain because of the collapse of a centralized server, so the infrastructure built by DePIN will instead help Web3 to truly move towards another "new world", rather than trembling on the "old infrastructure".

Second, when people discuss Web3, they will wonder if there is a team in this industry that can really generate cash flow income, and perhaps the DePIN sector will bring a new answer to this question, after all, DePIN projects can provide services to some enterprises or individuals through the construction of new physical networks, so as to obtain revenue, and this price will be a fraction of the traditional service.

Of course, due to the early stage of the industry, the development of DePIN in the past few years has attracted more attention from hypesters than real builders, but fortunately, after the baptism of the past year or two, the DePIN track has begun to show new vitality, and some emerging teams have also emerged, and even old projects after the hype cycle are also "sprouting".

Taking the popular decentralized storage in the past few years as an example, from the earliest direct storage (FIL representatives), to permanent storage (AR representatives), to the recent space leasing (CESS representatives), the industry has also begun to transition from vertical to segmentation, which is why DePIN is worth paying attention to, because it is no longer a rough branch, but intensive farming**.

CESS is a blockchain-based decentralized cloud storage network and CDN network that supports online data storage and real-time sharing, providing a full-stack solution for the storage and retrieval of high-frequency dynamic data in Web3. CESS Data Value Network is a Layer 1 infrastructure built with the concept of DePIN, which is decentralized, efficient, secure, private, and scalable. CESS supports large-scale commercial storage and can carry phenomenal decentralized applications (dApps), CESS supports data valorization and free circulation/sharing of data value, and at the same time realizes user data privacy protection and data sovereignty return to data owners in a trustless way, so as to build a prosperous, diversified, and new data economy ecology with data asset sovereignty.

Although the recent news of BTC ETF has brought Web3 into the mainstream financial vision, it will still take a while before mass adoption, NFT is one direction, DePIN is another, they are both in the tuyere of the integration of the physical world and digital assets, but one has been out of the circle, and the other is still brewing.