DePIN and the Web3 Economy | Web3 Soaicl Day Bangkok
Panel Guests:
- Costanza Gallo, Head of Partnerships of Swarm Foundation
- Chess, Co-Founder of GM
- Ryan, Investing Manager of Future Money Group
Moderator:
- Collin Wu, Founder of WuBlockchain
Introduction and Background
Colin Wu (WuBlockchain)
Thank you, everyone, for joining us on this panel. Let’s begin with a brief introduction of yourselves and your projects, particularly how they relate to DePIN.
Ryan (Future Money Group):
Hi, I’m Ryan from Future Money Group. We are a venture capital firm investing in both the primary and secondary markets, with a strong focus on DePIN and AI. Founded in 2017, we were among the first to deploy DePIN hardware, such as miners, in the U.S. In this cycle, we believe DePIN is poised to shine.
Chess (GM):
I’m Chess, and our team is building AI and health products. One of our key innovations is the GM Band, a wristband with DePIN characteristics.
Costanza (Swarm Foundation):
I’m Costanza, and I work with the Swarm Foundation. Swarm is a decentralized data infrastructure designed for Web3. Originating as part of Ethereum’s early ecosystem in 2014, Swarm provides decentralized storage and communication solutions.
The Evolution of DePIN and Its Synergy with AI
Colin Wu (WuBlockchain)
DePIN as a concept, has been around for a while. In fact, some might even argue that Bitcoin qualifies as a DePIN example. However, in this cycle, we’re seeing a rise in AI-integrated DePIN projects. What are your thoughts on this trend? Is AI + DePIN the future, or is it just another way to decentralize GPUs?
Ryan (Future Money Group):
I agree that Bitcoin is an early form of DePIN. Many existing DePIN projects utilize decentralized physical hardware, like Helium’s wireless network. AI adds a new dimension by giving hardware a “brain,” enabling intelligent coordination. For example, small DePIN devices like Hivemapper could connect with larger systems, such as autonomous vehicles. AI can bridge these layers, making them work together efficiently.
Chess (GM):
On the business side, AI hardware like GPUs is already well-integrated. However, adoption is still limited for consumers. Products like Meta’s glasses and Baidu’s AI wearables show potential, but we haven’t yet seen DePIN + AI solutions that truly resonate with end-users in crypto.
Costanza (Swarm Foundation):
The major challenge with current AI systems is their centralized nature. Corporations like OpenAI control access, algorithms, and the underlying data, leading to a lack of transparency and privacy. Decentralized infrastructure, such as DePIN, is the only viable way to build ethical, transparent, and user-controlled AI systems.
Venture Capital’s Role in DePIN Development
Colin Wu (WuBlockchain)
What is the role of venture capital in the DePIN ecosystem, and how can VCs support these projects effectively?
Ryan (Future Money Group):
DePIN development can be categorized into three layers:
- Base Layer: Infrastructure like Layer 1 or Layer 2 solutions.
- Middleware Layer: Tools for data transformation, cleaning, and privacy.
- Application Layer: Consumer-facing projects like Helium or Hivemapper.
Each layer has unique opportunities. The base and middleware layers are ripe for innovation, but application-layer projects face challenges, especially in generating revenue. VCs can support DePIN by helping projects focus on niche markets, ensuring they solve tangible problems without overextending.
DePIN also bridges the physical and Web3 worlds, which adds inherent value. Unlike speculative crypto narratives, DePIN’s value proposition is grounded in real-world use cases, making it attractive to users and VCs alike.
DePIN Ecosystem Comparisons — Ethereum vs. Solana
Colin Wu (WuBlockchain)
Chess, GM is an Ethereum Layer 2 blockchain with DePIN characteristics. What are your thoughts on building DePIN projects on Ethereum versus Solana?
Chess (GM):
For most DePIN devices, the choice of blockchain has minimal impact because much of the activity occurs offline. However, Solana has emerged as a leader in DePIN, partly because projects like Helium have set a strong precedent.
That said, Ethereum offers significant advantages. It has the best developer ecosystem and fosters innovation, even if it’s currently less consumer-oriented. For GM, we’re building our own Layer 2 to offer lower costs and greater customization, which aligns with our long-term vision of putting data on-chain with privacy features.
Challenges and Opportunities in DePIN for Consumers and Businesses
Colin Wu (WuBlockchain)
Do you see more potential for DePIN in consumer markets or business applications?
Chess (GM):
DePIN adoption in the business sector is more straightforward due to its network effects. For instance, Bitcoin miners can create large-scale networks relatively easily. Consumer-facing DePIN projects, however, face hurdles like distribution, supply chain challenges, and regulatory issues. Without a strong network effect, consumer adoption remains tough.
Costanza (Swarm Foundation):
I’d add that trust and data provenance are critical for both sectors. With centralized solutions like AWS or Google Cloud, users have no control over data privacy or sourcing. Decentralized systems like Swarm address these issues by ensuring data integrity and user control.
Swarm vs. Filecoin — A Deep Dive into Decentralized Storage
Colin Wu (WuBlockchain)
Costanza, Swarm is often compared to Filecoin. Could you highlight the differences?
Costanza (Swarm Foundation):
Swarm was conceived as part of Ethereum’s original vision in 2014, alongside Whisper and the Ethereum blockchain. Swarm operates as a peer-to-peer network, splitting files into 4KB chunks stored off-chain across thousands of nodes.
In contrast, Filecoin relies on its own native blockchain. Swarm’s design emphasizes privacy, ensuring that neither the origin nor destination of a file request can be traced. Additionally, Swarm incorporates a blockchain-based settlement layer for payments. These features differentiate it as a decentralized and privacy-preserving storage solution.
Colin Wu (WuBlockchain)
Thank you to all the panelists for sharing your insights! If anyone has further questions about DePIN or related topics, feel free to reach out.
