Article

Data at the Heart of DePin

// August 01, 2024

The excitement about DePin (Decentralized Physical Infrastructure Networks) has been palpable for over a year now, and for good reason. Implementing market dynamics to take advantage of the huge proliferation of electronic devices being pumped out daily into the hands of consumers is a win-win for everyone involved - and for society as a whole.

DePin Potential

Sophisticated DePin networks could crowdsource compute and storage, unlocking untold reservoirs of processing power liquidity currently being untapped. They could act as infrastructure arrays and sensors in local data networks that help to provide local public goods to their communities; traffic controls, main grid energy allocation, local high-speed P2P internets. Using cryptographic base layers to act as a mechanism to orchestrate the use of all these edge computing devices we have already serendipitously produced, sold and distributed in the billions would be a powerful force multiplier in humanity’s general advance.

That’s the sales pitch, anyway. And it’s a good one. The ability to laterally scale capital investment in digital infrastructure by taking advantage of what’s already there can’t be overlooked. The devil, as always, is in the details. Enthusiastic insurgent DePin networks are already being primed with seed capital by VCs, yet we must ensure that these decentralized physical infrastructure networks are truly that - decentralized - otherwise we are just providing centralized networks which unnecessary extra steps. 

Why DePin Needs Data Management

Networks without proper DePin data management are not only exposed to the same threat vectors and potential misuse as all centralized entities, but they are fundamentally bottlenecked in processing the data they receive in the first place - meaning they are inferior at the goal they set out to deliver. Their frankenstein cryptographic base layers serve only to add ancillary rent seeking to an already complicated endeavor.

That’s a harsh take - there are several excellent DePin projects that will likely become important girders in our future global networks. Yet the problem remains: when developers build DePin networks currently, there are innate centralizers in the process that are not currently overcome. For example, in a DePin network focused on storage or compute, they have to choose individual devices on a network to act as main processing nodes. This means a few high powered devices are responsible for the majority of the network's workload, creating bottlenecks. The majority of the devices are reduced to water carriers. This limits scalability and the potential of these networks considerably - almost to the point of pointlessness.

DePin networks that are sensor arrays or general data gatherers - like those that collect data for sectors such as cars, weather and healthcare - are similarly scuppered by these centralization effects. This is because the decentralized network ultimately feeds all the data it accrued into cloud servers anyhow as the organizations running the networks build APIs to access it. Yet that means the Labs entity building the APIs needs to be trusted, and the value of the data collected is called into question. These problems emerge because of the lack of effective data management, watertight provenance, and P2P availability of data between devices - plus fundamental interoperability issues. 

True Decentralization Makes DePin Pay

If these could be dealt with, all devices in a storage or compute network could work on the application data they need to, and all would contribute processing resources to a shared task. All devices in a sensor-network could have the data they collected verified trustlessly and accessed permissionless, with the entity running the device network not becoming a centralizer, inadvertently or otherwise. Currently, if a DePin network relies on a few centralized machines that do the true work of the network, then it is fundamentally inefficient. If a DePin network feeds all its data back to a permissioned cloud server - then it's not decentralized at all. Currently, even with best intentions, developers have to do this, because there is no way for them to manage their data across all these different devices in the network. 

If they could, then they could actually get the equivalent power of a H100 from the unused devices people have lying around the house, from the smart cars on every highway. Effective data management would allow seamless deployment and management of data across a multitude of devices in a DePin network. This would enable developers to harness the collective compute power without manually selecting devices.

The data management and interoperability concerns are issues plaguing the rapid scaling growth of DePin networks which, otherwise, are a game-changing concept for future infrastructure. Ensuring consistent, ironclad, private, secure and compliant data management at all times could truly begin the DePin revolution, providing the trust that users need to fully buy into the vision and contribute their computing resources to the crowd. 

Why DefraDB Is Designed for DePin

DefraDB is designed for DePin. With it, developers can deploy fully decentralized data management throughout their networks and ensure complete interoperability between every device within it, even if they also operate in and use traditional centralized infrastructure. DefraDB can abstract the underlying infra in its binary deployments, meaning data can pass frictionlessly between devices in the network - no matter which vendor they are from. This means that every device in a compute network can contribute its processing power. The data on every device in a sensor network has unimpeachable provenance, with no centralized custody taking place on its way to the consumer. LensVM is our data translation/migration tool to ensure all software whose data is managed by DefraDB can be mapped to other environments, and vice versa - allowing developers to easily transition their existing software and begin decentralizing their data management.

For DePin networks to thrive, they need to be compliant, they need to preserve privacy, and devices in the network all need to ensure sacrosanct data availability and protections at all times. For that, the data needs to be decentralized at source, by Source. A DePin network for data management could unlock the true potential of the compute, storage, and sensory array potential that have frothing exponential capabilities at mass scale. Yes, we can crowdsource an AI god, but the only way we’ll do it is by doing it together. Let’s build DePin networks that work by decentralizing your data management with Source Network’s tools.

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