Advocates of Decentralized Physical Infrastructure Networks (DePIN) generally aim to leverage blockchain technology to give users control and ownership of real-world physical infrastructure networks, from GPU chips to wireless data networks. The project in space claims that: It provides real value in a way that sets it apart from other cryptocurrency projects.
“DePIN is probably the only category on the web3 where value comes from outside of the cryptocurrency sector,” Alvaro Garcia, partner at Borderless Capital, said in a recent interview with The Block. He also claimed that the DePIN project makes it uniquely resistant to bear markets that could affect the rest of cryptocurrencies.
In a recent Mainnet Conference interview, Greg Osuri, CEO of DePIN Protocol Akash, provides a decentralized marketplace where users can use their computing power to buy and sell computing power. AKT
-2.39%
The token reflected the sentiment and said regulators took note.
“I spend a lot of time on Capitol Hill. I was in a meeting with one of the top aides on the (House Energy and Commerce Committee), and I introduced myself and they said, ‘We know.’ ‘Akash, you are the intersection of DePIN and AI,’ Osuri said, calling the meeting ‘very productive.’
“Akash’s brand in the mainstream is that it is disrupting existing oligopolies. This is what cryptocurrencies should do,” Osuri continued. “In some ways, DePIN is much more attractive to the mainstream public than other sectors of cryptocurrency.”
DePIN is increasingly attracting the attention of VCs such as Borderless Capital, which recently raised an investment. $100 million for a third DePIN fund. The first two DePIN funds invested in the following projects: helium 
HNT
-5.76%
This is and GEODNET, a distributed wireless carrier, a distributed real-time kinematics (RTK) network for satellite navigation.
Osuri argues that DePIN’s unique value proposition provides a justification for regulating the sector differently from other cryptocurrency sectors such as decentralized finance (DeFi). To that end, Akash and rival InFlux Technologies, which operates a decentralized computing network, recently announced the formation of a DePIN and Web3 advocacy group aimed at convincing regulators of DePIN’s value.
“Currently there is a lack of need to regulate DePIN so that it is not regulated as NFTs and DeFi because when regulators look at cryptocurrencies they put all the sectors into a single category and regulate them accordingly. So I think that is very important. We need to decouple regulation of (DePIN and other cryptocurrencies) and make sure lawmakers, legislators and regulators get the message,” Osuri said. “(Akash and InFlux) put all the competition aside…as a way to show that we can achieve unity because we all care about the space…and through that unity, I think we can achieve regulatory clarity .”
Although the DePIN project often uses cryptographic features like blockchain and tokens, Osuri said communicating the benefits of DePIN is more important than championing the ‘crypto’ label.
“If you go to Akash’s website, most of the time there is very little mention of cryptocurrency. We are trying to communicate to benefit the users rather than the architecture,” Osuri said. “I avoid the word ‘cryptocurrency’ and no one cares… (any AI person will tell you this) ‘verifiability’ is not necessary as long as we can get all the GPUs we need.”
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.