Network3 Investment Report: High-Potential Edge AI Infrastructure Rising Star

On November 26, Binance founder Zhao Changpeng posted that "I do not oppose Memes, but Meme coins have become 'a bit' strange. Let's build real applications using blockchain." Indeed, the market's attention has been focused on Memes for too long, neglecting many highly promising practical blockchain projects, leading to their severe undervaluation. Network3 is one such high-potential Edge AI Infra project that is expected to shape a new myth of hundredfold returns in the practical AI field.

1. Project Overview: Pioneer of DePIN and Edge AI

As a new generation of decentralized edge artificial intelligence infrastructure, Network3 combines blockchain token economics, decentralized physical infrastructure networks (DePIN), federated learning, and edge AI, aiming to break the monopoly of large tech companies on AI development and narrative, providing services for global AI developers.

Through a decentralized federated learning framework, Network3 achieves collaborative model training without sharing users' raw data, providing dual guarantees of privacy protection and data security. Meanwhile, the token incentive mechanism in the distributed node network lowers the participation threshold and ensures the stable operation of the network.

Recently, Network3 has shown astonishing growth potential—over 100K new nodes were added compared to last week, with a growth rate of 25%. According to DePINscan data, the number of Network3 nodes has surpassed 507,261, distributed across 188 countries and regions, exceeding the well-known DePIN project Helium, ranking fifth globally. This large-scale network provides strong support for AI application scenarios while promoting the democratization of computing power and data.

2. Market Prospects: New Opportunities in a Trillion-Dollar Blue Ocean

The combination of DePIN and Edge AI is at the forefront of a technological revolution, and its potential has yet to be fully tapped. With its technological layout, node scale, and token incentive model, Network3 is positioned at the forefront of this transformation.

2.1 DePIN: The Physical World Gateway of Web3

Decentralized physical infrastructure networks (DePIN) are crucial technologies connecting blockchain with the real world. They incentivize users to contribute real-world resources (such as hardware, data, computing power, etc.), forming a large-scale distributed network that supports both on-chain and off-chain applications.

According to the report "State of DePIN 2023" released by Messari, the market potential of DePIN is enormous:

• 2024: Approximately $2.2 trillion
• 2028: Expected to reach $3.5 trillion
• Compound Annual Growth Rate (CAGR): 12.31%

Currently, the total market capitalization of the DePIN sector in the crypto market is only $1.33 billion, less than 1% of the entire market. This significant undervaluation indicates that the DePIN field is still in its early development stage, and its market potential has yet to be unleashed. With more enterprises and developers participating, DePIN is expected to usher in a rapid growth period.

2.2 Edge AI: The Key Technology Driving AI from Centralization to Decentralization

Edge AI refers to the technology that executes AI model inference and computation locally on devices (such as smartphones, sensors, or mining machines), addressing the privacy, security, and real-time deficiencies of traditional cloud AI.

According to Fortune Business Insight data:

• 2024: The global edge AI market size is $27.01 billion
• 2032: Expected to grow to $269.82 billion
• Compound Annual Growth Rate (CAGR): 33.3%

Compared to centralized AI, Edge AI performs better in data privacy, bandwidth efficiency, and latency optimization, gradually becoming a strategic focus for tech giants. Companies like Nvidia, Google, Microsoft, Intel, and Huawei have invested heavily to compete for market share.

In summary, the combination of DePIN and Edge AI not only enhances data privacy and computing efficiency but also opens up vast prospects for long-term growth. Given the enormous market blue ocean and strong growth expectations, the investment potential of Network3 cannot be overlooked.

DePIN Sector Map includes Network3, data source: Messari

3. Token Economics: Clear Investment Returns

3.1 Economic Model

According to the official economic white paper, the total supply of Network3 tokens (N3) is 1 billion, of which 75% will be distributed to nodes and users through mining (40%) and AI model training (35%). This high proportion of community incentive design ensures the long-term vitality of the ecosystem. Additionally, users can stake to obtain veN3 tokens in the future, allowing them to share in 75% of the network's transaction fee revenue, further increasing profit avenues.

3.2 Hardware Performance

According to DePINScan data, the current Edge V1 mining machine is expected to yield approximately $9.2 per day, with a payback period of about 100 days. The current Edge V1 mining machine has achieved dual mining support for IoTeX's IOTX token, allowing users to earn both N3E and IOTX token rewards simultaneously. Moreover, the team plans to integrate more public chains to maximize returns.

3.3 Token Distribution

4. Financing and Strategic Planning: Favor from Leading Institutions

Network3 has secured 5.5 million dollars in financing, with investors including top institutions such as Borderless, EV3 Labs, IoTeX Eco Fund, Mask Network, Bing Venture, Waterdrip Capital, SNZ, and Candaq. The funds will be used for technology research and development, global expansion, and ecosystem building.

According to official news, a new round of financing in the tens of millions of dollars has already begun, with several leading institutions confirming their participation.

5. Competitive Analysis: Unique Advantages of Technical Architecture

Network3's focus on decentralized edge AI and federated learning gives it unique advantages in technology, market positioning, and long-term development. Compared to Aethir and Grass, Network3's strategy of combining privacy protection, decentralized AI training, and edge computing aligns better with the future needs of AI applications, especially in a context where privacy and compliance are increasingly emphasized. Therefore, when investors evaluate decentralized infrastructure projects, the long-term innovative potential offered by Network3 may yield higher returns.

6. Milestone Events

• Edge V1 Mining Machine Hot Sale

On August 10, 2024, the N3 Edge V1 mining machine launched by Network3 sold out within seconds of going live, and currently, over 5,000 devices are online and mining simultaneously. Additionally, the N3 Edge V1 mining machine can not only be used for mining on the Network3 network but also integrates IoTeX's on-chain identity module ioID and data verification module, achieving dual mining with IoTeX's IOTX token.

• Network3 Local LLM Coming Soon

According to official community news, the large language model Network3 Local LLM, designed based on the Network3 network, has completed internal product testing and will be launched soon to provide services to users. According to official information, Network3 Local LLM features free usage, no geographical restrictions, independent algorithm design, prompt-to-earn, and on-device inference.

• Network3 TGE and First Round Airdrop Coming Soon

According to official news, Network3's TGE (Token Generation Event) and airdrop plan are about to launch, marking an important milestone in the platform's development and opening a new growth phase for Network3. Details regarding the TGE timeline, airdrop rules, eligibility requirements, token distribution, and other specifics are expected to be announced soon. Investors can follow Network3's official channels and social media platforms for the latest updates.

Conclusion

With its unique technological advantages, clear market positioning, and community-driven business model, Network3 offers potential opportunities for long-term investors. While hardware deployment costs and competitive challenges in the sector are potential hurdles, looking ahead, as TGE progresses and market demand expands, Network3 has the potential to attract more users and developers, becoming an important driving force in the DePIN and decentralized AI fields. For investors, this is a high-potential track worth paying attention to!