Decentralized technologies over the past few years has given rise to various technical concepts: Non-Fungible Tokens (NFTs) and Decentralized Physical Infrastructure Networks (DePIN) are some examples.
In the crypto world, NFTs have been associated with art and collectibles, however, their implementation has more applications.
While DePIN is a new concept of distributed systems where real-world physical infrastructure is owned, operated, and supported by a decentralized network of contributors. The converging worlds of NFTs and DePIN are now laying the groundwork for a new concept which we will discuss in this article.
What is DePIN?
Decentralized Physical Infrastructure Networks(DePIN) is a decentralized model that enables individuals or entities to contribute real-world infrastructure resources (GPU compute, physical wireless networks, units of storage, and systems of mobility) to a distributed network in exchange for tokens and incentives.
DePIN resources are not owned and controlled by centralized corporations, and government entities; they are built and maintained by distributed participants who benefit from their contributions.
Recently, Kaisar DePIN has served as an important example of decentralized compute. Kaisar aggregates underutilized GPU resources via containerized workloads and orchestrates workloads with AI and blockchain technology to provide scalable compute resources.
NFTs and DePIN
Non-Fungible Tokens (NFTs) are unique digital assets that are recorded on the blockchain and signify ownership of a single item or a right to something. NFTs are associated primarily with digital art or music, but they are also usable as access tokens, licenses, or permits.
NFT being unique and verifiable makes them an excellent option for tokenisation of access to physical infrastructure.NFTs can provide the following functionalities in a DePIN ecosystem:
- Proof of Contribution – NFT can signify that the individual has contributed to infrastructure in a DePIN and is eligible for compensation and reward.
- Access Levels – NFT can define levels of access to resources based on the rarity and its value.
- Dynamic Access – NFT could be updated to change in real-time with resources not able to support desired usage pattern.
NFTs as Access Tokens in DePIN
NFTs in DePIN can leverage smart contracts that authenticate ownership and appropriately grant access or deny access to the physical infrastructure utilised. NFTs can be accessed across multiple infrastructure platforms for participation through tradable badges or rewards, or privileges by the NFT owner.
A NFT holder can sell access to the infrastructure resource through open marketplace distribution, and ultimately promote DePIN use .DePIN networks will also be able to determine supply and demand with NFT tracking verifiability in terms of access history and ownership.
Real-World Use Case: Kaisar Network
Kaisar Network can serves as a case study on how NFTs can work in tandem with the DePIN architecture. Kaisar, at its foundation, enables users to contribute GPU resources, packaged conveniently into containers that are executed for AI workloads.
The use of NFTs can be done in a few different aspects in order to facilitate access to computing hardware and incentivising contributions.
Any node in the Kaisar DePIN will associate with an NFT that grants rights of usage to a buyer or a developer. Users will also be able to purchase or earn NFTs for providing proof of compute hours and when required, can simply redeem to execute workloads on the network.
This model can promote transparency and trust, but additionally amongst all of these benefits, enables dynamic pricing of compute capacity that is not possible with a centralized provider.
Applications of NFTs in DePIN
NFTs can encode specific permissions or parameters that can uniquely control specific use cases of the infrastructure.
- Smart Cities: NFTs as mobile access keys can be leveraged for public transportation, electric vehicle charging stations, and municipal Wi-Fi.
- Decentralized Energy Grids: NFT can provide tokenized access to local or independent solar panel or microgrids.
- Edge AI Networks: Federated learning models will leverage a computing DePIN to support distribution of AI processing, with NFTs providing additional execution rights of models.
- Supply Chain: NFTs could represent verified access to freight hub assets to be shared, or to logistics hub access.
Conclusion
As the Web3 continues its journey to become more integrated and sophisticated, the combination of NFTs and DePIN will certainly strengthen and spread to a more modular internet experience.
NFTs and DePIN is changing the way we think about ownership and access in the physical world. By utilizing the digital uniqueness and programmability components of NFTs, decentralized infrastructure create opportunities for new models of participation efficiency and monetization.
Join Kaisar Network
Ready to scale your AI projects with affordable GPU resources? Join Kaisar Network today and harness the power of DePIN. Visit kaisar.io to get started
