JDI 2023 DePIN Report: From Brewing to Explosion, Where Will the DePIN Track Go in 2024?
This article mainly outlines the development context of DePIN in 2023, as well as JDI Ventures' involvement in DePIN.Author: JDI Global
In the recently concluded year of 2023, the Crypto market has gone through its harshest dark moments and has ushered in a new bull market, ignited by the concepts of inscriptions and DePIN (Decentralized Physical Infrastructure Networks). If inscriptions represent the Crypto market's demand for fair launches, then DePIN signifies the embrace of Web3 in the infrastructure sector.
DePIN is leading a revolution, not only a technological revolution where blockchain and the Internet of Things converge but also a commercial revolution that incentivizes the construction of infrastructure. This revolution is fundamentally changing physical infrastructure.
From network builders to service providers and ultimately to end consumers, the DePIN paradigm incentivizes individuals and small businesses to deploy and operate infrastructure networks, making the deployment of digital-centric infrastructure more efficient, democratized, and cost-effective on a global scale.
From telecommunications to data warehousing and data sensors, to the layout of AI computing power and models, the potential brought by DePIN for technological acceleration is limitless.
According to a research report by the industry-leading institution Messari titled "The DePIN Sector Map," the market size of DePIN is expected to reach $3.5 trillion by 2028. In terms of time, there is not much left for the DePIN track, but in terms of market size, the DePIN track is clearly still in a very early stage.
This article mainly outlines the development context of DePIN in 2023, introduces JDI Ventures' involvement in DePIN, analyzes the main applications of DePIN, and looks forward to the development trends of DePIN in 2024.
Review of the Development Context of DePIN in 2023
For many practitioners, DePIN is a suddenly emerging new concept, gaining attention primarily due to the remarkable market performance of DePIN concept tokens in recent times. However, the DePIN concept has actually been brewing for quite a long time.
The concept of DePIN (Decentralized Physical Infrastructure Networks) was officially proposed in a research report titled "The DePIN Sector Map" released by Messari in early 2023, defining DePIN as "utilizing cryptoeconomic protocols to deploy real-world physical infrastructure and hardware networks." In simple terms, it promotes the construction of physical infrastructure networks through token incentives based on blockchain.
Moreover, Messari provided a rather optimistic market forecast—expected to reach $3.5 trillion by 2028, which led to heightened market attention towards the DePIN concept.
However, this was merely the starting point for DePIN in terms of nomenclature. Prior to this, concepts such as Proof of Physical Work (PoPW), Token Incentivized Physical Infrastructure Networks (TIPIN), and EdgeFi had been proposed, but ultimately, the community vote initiated by Messari adopted the term DePIN.
Setting aside the evolution of nomenclature, projects that "utilize cryptoeconomic protocols to deploy real-world physical infrastructure and hardware networks" have existed for a long time.
For instance, the decentralized network Helium was established in 2013, and the decentralized storage platform Storj was founded in 2014, both initiated by teams from the telecommunications and storage sectors exploring how to build physical infrastructure networks in a decentralized manner. Later, fields such as the Internet, AI, energy, and data collection gradually joined in. Although the subfields vary widely, the core logic remains consistent, ultimately forming today's thriving DePIN track.
After the DePIN concept was proposed in January 2023, its popularity waned in less than a month, as the market was still in a deep bear phase. However, some investment institutions and entrepreneurs began to lay the groundwork, although these early actions were difficult for the market to capture.
At the Hong Kong Web3 Carnival in April 2023, DePIN once again became an industry hotspot, largely due to the Hong Kong SAR government's high acceptance of DePIN and RWA in the Web3 field, and because DePIN is more suitable for early implementation. This continued to attract some investment institutions, entrepreneurs, and even relevant government departments, yet again, these early actions were hard for the market to detect.
It wasn't until after August 2023 that DePIN concept tokens, represented by Helium Mobile and Honey, surged dramatically, becoming the hottest track aside from inscriptions. This wave of enthusiasm was actually driven by multiple factors.
The most visible aspect to the market is that the entire crypto market has shifted from bear to bull, but why did only DePIN and inscriptions shine brightly? Therefore, we need to examine the specific reasons behind this.
As previously mentioned, the DePIN track has always had investment institutions and entrepreneurs laying the groundwork; it was just that the market environment in early 2023 was not conducive, and the new paradigm of DePIN was still being explored, resulting in few new DePIN projects being launched. By the end of 2023, whether due to an improving market environment or the accumulation of exploration by entrepreneurs, many projects gradually transitioned from initial concepts to tangible forms, leading to their subsequent market launches, at which point DePIN quickly occupied an important position in a market lacking technological innovation.
JDI Ventures' Layout in 2023
JDI Ventures is an investment institution under JDI Group that focuses on Web3 technological infrastructure, strategically laying out and continuously exploring around hardware service providers, DePIN project parties, developers, and communities.
Since its establishment in 2019, JDI Group has not only participated in the DePIN industry through investments but has also been one of the earliest and largest direct hardware participants in the DePIN field—establishing its own hardware platform to integrate leading projects in the DePIN and Decentralized AI fields, such as developing and promoting the hardware layout for Helium and DIMO Network, particularly addressing their supply chain and community service issues in the Asian region.
Over the past four years, JDI Group has successfully captured opportunities in the DePIN industry, accumulating rich experience in DePIN construction through continuous investment, exploration, and promotion, and accelerating the adoption of Web3 applications in the real world, gradually becoming an industry leader in the DePIN field, contributing its irreplaceable influence to the growth of the DePIN industry.
In the past year, as the investment institution under JDI Group, JDI Ventures has not only invested in projects like Geodnet, PowerPod (electric vehicle charging solutions), Metablox (a global WiFi network integrated with Web3), Helium Mobile (blockchain-based mobile network services), DIMO Network, and Hivemapper (connected vehicles), but has also actively explored the possibilities of DePIN projects in underdeveloped infrastructure areas such as Africa, fundamentally changing the local communication environment.
In 2024, the DePIN projects laid out by JDI Ventures will gradually showcase the broad applications and potential that DePIN technology should have. Below are just some relevant details of the cases laid out by JDI Ventures.
1. Helium Mobile
As an early supporter and participant of Helium, JDI Ventures is now actively involved in the Helium Mobile project. Currently, Helium Mobile has over 10,000 subscribers, demonstrating rapid adoption and market penetration of its services.
The MOBILE token has surged over 1000% in the past few months, driven by the growth of 5G and Wi-Fi networks. With the nationwide service launch, explosive growth of the network is expected.
At the beginning of 2024, Helium Mobile's subscribers on the Helium network have exceeded their usage on T-Mobile, indicating that users prefer Helium's services over traditional mobile operators. This shows that Helium Mobile, as an emerging DePIN service, is successfully attracting and retaining users and has begun to compete with traditional large operators in terms of data traffic.
2. DIMO Network
In December 2023, DIMO Network celebrated the first anniversary of its mainnet operation. With the manufacturing support of hardware manufacturer Hashdog, which is laid out by JDI Ventures, DIMO has made significant progress in vehicle data connectivity and analysis.
DIMO has been recognized in CB Insights' "Top Connected Vehicle Data Platform Companies" and was specially featured in CryptoLola's showcase of top DePIN projects.
Real-time vehicle valuation: Over 32,000 cars connected to DIMO, valued at over $300 million, with real-time valuation tools helping drivers maximize their vehicle value.
Number of connected Macarons devices: By the end of 2023, over 1,000 Macarons devices have been connected to DIMO, with greater growth expected in the new year.
DIMO's analytics team has solved the challenge of accurately measuring fuel levels in vehicle tanks.
DIMO provides monthly reports that simplify the process of buying and selling used cars, offering actual price valuations to help users navigate the used car market.
3. PowerPod
JDI Ventures' investment in PowerPod represents a long-term layout in emerging energy technologies and green transportation solutions within the DePIN field.
As a startup focused on electric vehicle charging solutions, PowerPod has immense growth potential in building a distributed shared charging network.
PowerPod's vision aligns with JDI Ventures' global movement to promote environmentally friendly transportation and energy solutions. JDI Ventures' investment in PowerPod not only demonstrates its commitment to clean energy and sustainable development but also signifies an exploration of innovative energy network models.
4. Metablox
Metablox enables users to seamlessly roam between access points globally while providing token rewards to individuals participating in its network.
Currently, Metablox has deployed 12,714 nodes in 96 countries and has 11,317 active users, ranking second on DePINscan, laying a solid foundation for future growth in the DePIN field.
The success of Metablox is not only a result of technological innovation but also a reflection of enhanced collaboration and transparency in the DePIN field. JDI Ventures has not only supported Metablox's technological development but has also assisted in its market promotion and brand building in the DePIN field.
5. Geodnet
GEODNET's primary revenue source comes from its correction services and related services to the global satellite navigation system (GNSS) industry and its users. According to market reports, enhanced services represent a large category worth approximately $20 billion.
GEODNET has established a certain technological advantage in high-precision applications, having deployed over 3,300 user-owned sites, with plans to expand its network to over 50,000 sites by 2024, aiming to become one of the largest networks globally. 2023 marked the first year GEODNET generated on-chain revenue, burning 4,040,000 GEOD tokens (0.4% of the maximum supply).
JDI Ventures has not only participated in GEODNET's financing but has also deeply engaged in GEODNET's hardware sales business.
6. Phoenix
Phoenix Global provides decentralized AI infrastructure, including an AI computing layer and enterprise-level Layer 1 blockchain. Additionally, Phoenix offers no-code AI deployment and multi-party computation, ensuring that analysis, computation, and value sharing do not compromise data privacy.
As a strategic investor and hardware partner, JDI Ventures' involvement with Phoenix will facilitate the rapid development of the SkyNet AI node network, particularly through the upcoming PhoenixNode and additional computing infrastructure hardware.
By engaging with Phoenix, JDI Ventures further deepens its influence and participation in the AI track.
7. Wicrypt
Wicrypt is Africa's first blockchain-based decentralized wireless infrastructure project, having successfully received funding from Microsoft and Google Cloud. It has deployed over 1,100 hotspots in more than 30 countries, allowing individuals and businesses to share their online connections while earning token rewards based on usage statistics.
JDI Ventures not only supports Wicrypt financially but has also collaborated with it on hardware to jointly promote the global development and popularization of DePIN to help bridge the global digital divide.
8. Meson Network
Meson Network is a decentralized CDN that utilizes Web3's incentive system to collect large amounts of public data in a decentralized manner, which will become the foundation for distributed storage, computing, and data transmission in the emerging Web3 Dapp ecosystem.
In simple terms, it creates a distributed network of IP and bandwidth resources by aggregating idle IP and bandwidth resources from individuals and distributing them to users with specific needs based on certain rules.
Currently, Meson Network has accumulated over 10 Tbps of global bandwidth and has over 20,000 mining nodes, demonstrating the potential of blockchain technology in transforming traditional producer-consumer relationships into incentive-based network models.
Summary
The eight DePIN projects mentioned above cover different subfields, and JDI Ventures' layout extends far beyond this, with ongoing exploration and layout in green energy directions, such as investments in the decentralized energy internet Arkreen and virtual power plant Starpower. JDI Ventures will gradually disclose its actions in the DePIN field.
Conclusion
As presented in the review and recap of the DePIN track in 2023 and the introduction of JDI Ventures' layout in 2023, DePIN is not a meme that emerged overnight but rather a narrative that has taken a considerable amount of time to brew.
The imagination of the DePIN narrative lies in its being the greatest common divisor between the Web3 world and the real world—it's Web3 shining into the real world and the entry point for reality into the Web3 world.
Due to the industry attributes of infrastructure, the DePIN track is fundamentally different in information transmission from tracks like GameFi and DeFi, which are directly aimed at crypto users—most information is transmitted among relevant institutions, project parties, and miner communities within the industry. Therefore, the sudden explosion of the DePIN track was entirely unexpected in the crypto market, yet it was also quite reasonable.
So, standing at the beginning of 2024, what signals and trends are worth paying attention to in the DePIN track?
The information and logic mentioned above have explained why the DePIN track exploded at the end of 2023. Now, a new signal worth noting is that both overseas family offices and domestic business owners have shown a strong interest in the DePIN track.
Firstly, it is because they see the broader trend of Web3. Additionally, a very critical factor is that they can easily understand the business and business model of the DePIN track (compared to DeFi, GameFi, or even memes). Their funds have begun to flow into the DePIN track through various channels such as personal angel investments, LPs from investment institutions, and hardware procurement, which is a trend that has been ongoing for at least six months.
As the largest promoter and leader of the DePIN track in the last bull market, JDI Ventures continues to focus on laying out the DePIN track in 2023. With the imminent explosion of the DePIN track in 2024, JDI Ventures is willing to contribute its rich experience in DePIN construction to help DePIN projects move towards a trillion-dollar market in terms of funding, hardware, supply chain, and community services.
