Genfinity recently conducted an interview with IoTeX, one of the most pioneering infrastructure providers for DePIN projects. Don’t overlook this interview, packed with IoTeX updates and exclusive insights into other emerging projects!
IoTeX explained
Larry Pang
Larry Pang, Head of Business Development at IoTeX, discusses the company’s journey in the blockchain space since its inception in 2017. With a background in management consulting and technical assessments for Fortune 500 companies, Larry became intrigued by blockchain technology during a project evaluating its potential for a large clearing house in 2016. This sparked his interest in its applications beyond finance, particularly in the Internet of Things (IoT).
IoTeX
IoTeX aims to bring trust and transparency to the vast network of IoT devices worldwide, which are expected to exceed 100 billion in number. By leveraging blockchain technology, IoTeX seeks to ensure data ownership and control while enabling users to share in the value generated by these devices. This concept, referred to as DePIN (Decentralized Physical Infrastructure Network), underpins IoTeX’s mission to empower the future workforce of IoT devices.
IoTeX middleware
IoTeX is more than just a blockchain; it offers a modular tech stack tailored for device-centric applications. The platform’s layer-1 blockchain, operational since 2019, boasts speed, scalability, decentralization, and EVM compatibility. However, Larry expressed that IoTeX’s standout feature lies in its device-centric middleware and tooling, simplifying device identity, data acquisition, proof generation, and blockchain submission processes.
Two key components of IoTeX’s modular tech stack are IO ID and W3bstream. IO ID serves as a decentralized identity layer for smart devices, enabling device identity establishment and ownership definition on-chain. W3bStream acts as a layer-2 rollup for DePIN, allowing for off-chain computation of device data before submitting proofs of real-world activity to the blockchain. This approach is crucial for handling massive data volumes generated by devices like vehicles efficiently.
W3bstream employs zero-knowledge technology, ensuring scalability while maintaining privacy. Additionally, IoTeX offers embedded SDKs and connectivity solutions to facilitate device integration with the internet and the blockchain.
By providing these tools and middleware, IoTeX aims to alleviate the complexity of connecting hardware to the blockchain, empowering developers to focus on building on-chain communities and economies within the DePIN ecosystem.
IoTeX developer focus
IoTeX focuses on simplifying the lives of application builders by providing off-the-shelf infrastructure solutions. They specialize in certain layers of the modular tech stack while partnering with others to fill gaps, such as data availability layers with projects like Celestia and NEAR.
This collaborative approach allows developers to choose technologies that best suit their needs, fostering a more inclusive and adaptable ecosystem. Beyond technology, IoTeX offers support for go-to-market strategies, liquidity building, and community development, aiming to provide comprehensive advisory services for DePIN projects. By catering to builders’ needs across various aspects, IoTeX aims to empower developers and facilitate innovation within the DePIN sector.
Blockchain compatibility
Pang emphasized that W3bstream is already compatible with various layer-one blockchains like Solana, Ethereum, Polygon, and BNB Chain, with plans to integrate with more blockchain families. This compatibility highlights the modularization trend in blockchains, allowing users to mix and match different components to build their tech stacks.
While W3bstream is compatible with multiple layer-1s, it is natively integrated with IoTeX’s layer-1 blockchain, offering a more seamless experience for users building end-to-end stacks. This collaboration with other layer-1 blockchains enhances IoTeX’s appeal, particularly for dApps launching tokens and building their tech stacks on IoTeX’s layer 1.
IoT + DePIN – are they interchangeable terms?
We were curious if DePIN replaced the term “internet of things” (IoT). Larry explained that the term is gaining traction within the industry, particularly in the intersection of blockchain technology, cryptocurrency, and the Internet of Things (IoT). This term encompasses various physical infrastructure networks like conductivity, bandwidth, renewable energy, and automotive networks, which are being built on decentralized blockchain platforms.
The rationale behind adopting “DePIN” over previous terms like “IoT” or “DeFi IoT” is to provide a more intuitive and descriptive name for the industry. While “IoT” may be familiar to those in the know, it can be confusing for others. However, he opined that “DePIN” appears to have gained broader acceptance across the industry, with Messari reportedly coining the term.
Whether “DePIN” will become the standard industry term remains to be seen, but for now, it seems to be gathering momentum as a descriptor for this emerging sector. Notably, Larry emphasized that, “DePIN is not a crypto narrative” and is here to stay.
IoTeX’s recent developments
IoTeX is witnessing the emergence of numerous new dApps on its network, with initiatives ranging from decentralized connectivity networks to EV charging solutions. Notably, IoTeX launched the world’s first DePIN accelerator in collaboration with two prominent VCs, Futuremoney Group and ForesightX.
This accelerator has attracted projects like Wayru, PowerPod, and Network3. Wayru aims to establish a decentralized connectivity network, while PowerPod tackles decentralized EV charging, addressing challenges in urban areas like Hong Kong. Other projects include ForEX, Network3, and EnviraBlock, each targeting diverse areas such as decentralized GPU networks and smart home data management.
Additionally, IoTeX introduced DePINscan, akin to EtherScan but focused on device monitoring, providing insights into device footprints and network activity for users interested in exploring the DePIN landscape.
A deeper dive into various DePIN projects
Larry explained that the concept of DePIN encompasses various smart devices with common features like batteries, computing capabilities, connectivity modules, and sensors. These devices generate data and may offer services to users. Notably, in addition to traditional devices, platforms like Render (RNDR) and Akash (AKT) are creating decentralized GPU clusters, contributing to this ecosystem. These platforms, along with Filecoin (FIL), play roles in providing compute power, storage, and GPU availability to users. DePIN now includes two categories: one focusing on physical devices in homes for data gathering, and another, called DeREN (Decentralized Resource Networks), involving server-based provision of resources like compute and storage. This evolution signifies a broader scope within decentralized infrastructure, bridging physical and network resource provision.
Pang also noted that DePIN traditionally focused on supply chain and data provenance, particularly with physical devices in homes gathering sensor data. However, the concept has evolved to include DeRENs, which involve devices such as servers providing compute power, storage, or GPU clusters for rendering and other tasks. This distinction reflects a broader scope within the decentralized infrastructure ecosystem, catering to both physical devices and network resource provision.
The importance of DePIN projects
Our discussion went to the importance of trustless devices in certain contexts, particularly for devices serving public goods or renewable energy networks.
Larry elaborated that while regions like the US and Europe have reliable public utilities, many parts of the world lack such infrastructure. Blockchain and DePIN can address this gap by providing trustworthy public utilities. Projects like Wayru, built on platforms like IoTeX, are bringing connectivity networks to underserved regions, exemplifying DePIN’s potential impact.
Moreover, trustless device identity is crucial, especially for future applications like autonomous vehicle networks. Without trust in device identity, conducting business or contributing to public utilities becomes challenging. IoTeX has developed a decentralized identity stack specifically for devices, ensuring on-chain identities and facilitating secure interactions within decentralized networks. This emphasis on device identity forms a cornerstone of DePIN’s development and adoption.
The Wayru project
The Wayru project is a prime example of DePIN’s nascent technology expanding infrastructures to underserved areas. The Wayru Network represents a decentralized wireless network utilizing blockchain technology to offer secure, accessible, and decentralized internet access globally. Its focus on existing commercially available devices aims to maximize participation and accessibility, with plans to expand compatibility to a broader range of technologies in the future, including Wi-Fi, IoT, and 4G/5G. Firmware updates are distributed over-the-air to ensure network health and security, enhancing user experience and performance.
Wayru employs various technologies for data transmission and wireless communication, selecting solutions tailored to the specific geographic and
infrastructural realities of served areas. This approach ensures high-speed, low-latency internet access with maximum coverage. Additionally, the network prioritizes user privacy and security, with each connection secured through individual tunnels and requiring verified accounts for both users and hotspot operators.
You can read more about the WAYRU token, coming in Q3 of 2024, here.
Other projects
Within different verticals such as automotive, decentralized wireless connectivity, renewable energy, and imagery, diverse hardware requirements emerge, ranging from sensor-focused devices to server-based systems. Larry believes the growth in the supply side of DePIN is notable, with projects like Helium (HNT) and XNET pioneering decentralized wireless networks. Other projects, like DIMO and DriveX, are focusing on automotive data collection.
Additionally, initiatives like Hivemapper aim to create decentralized mapping solutions by utilizing cameras. Mobile hotspots from Helium and XNET provide Wi-Fi and 5G connectivity, while healthcare projects leverage wearables for decentralized data pools. The collective output of these devices serves as a basis for identifying valuable DePIN use cases with real-world demand.
“If it’s a public good that has demand, you may have a great DePIN use case.”
Looking ahead
The potential of DePIN as a pathway to mass adoption is significant, offering individuals the opportunity to effortlessly connect their devices and generate passive income streams. With DePIN, even those unfamiliar with traditional crypto use cases can participate, leveraging existing devices in their homes to earn income.
IoTeX is evolving its infrastructure to support this vision, aiming to provide a comprehensive network for DePIN applications through new tokenomics and technology modules. As an infrastructure builder, IoTeX’s focus on advancing DePIN reflects the rapidly evolving landscape of decentralized technologies, offering exciting opportunities for miners, token holders, and builders alike.
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