The convergence of blockchain and artificial intelligence (AI) could catalyze the exponential growth of the Decentralized Physical Infrastructure Network (DePIN) market, which the World Economic Forum (WEF) projects will exceed $3.5 trillion by 2028.
This transformative market, which currently sits at a value of $30 billion to $50 billion, is expected to grow more than 60 times in the next few years as blockchain and AI technologies reshape how decentralized networks function.
DePIN is an emerging sector that blends blockchain technology with community-owned physical infrastructure to create decentralized networks where individuals or organizations can contribute resources in exchange for cryptocurrency. As blockchain enables secure, transparent transactions and AI optimizes machine learning and data-driven processes, the DePIN model holds the potential to revolutionize infrastructure industries ranging from telecommunications to energy production.
According to the WEF’s report, one of the most significant catalysts for DePIN's growth is the emergence of Decentralized Physical AI (DePAI), a concept that merges decentralized networks with AI systems to interact with physical infrastructure in ways that traditional centralized systems cannot.
This "fundamental shift" in the relationship between AI and physical infrastructure is expected to accelerate DePIN adoption by enabling AI agents to interact with decentralized networks, collect external data, and use machine learning (ML) models in a distributed fashion, far removed from traditional, centralized data storage.
In contrast to centralized AI systems, where data and algorithms are controlled by a few entities, DePAI enables users to contribute data through their everyday activities, thereby fostering machine learning development without the constraints imposed by centralized data sources. This decentralized model could not only lead to a more equitable distribution of resources but also make AI development more open, scalable, and transparent.
As AI becomes more decentralized, it will increasingly rely on physical infrastructure to process and store the data necessary to fuel machine learning models. This shift from centralized computing systems to more distributed networks presents a massive growth opportunity for DePIN, especially as the need for decentralized wireless hardware solutions increases.
A $3.5 Trillion Opportunity
The WEF report predicts that DePIN’s market size will surge to $3.5 trillion by 2028, reflecting the vast potential of combining blockchain and AI. This growth trajectory would represent a monumental leap from the current market size of approximately $30 billion to $50 billion, with over 1,500 active DePIN projects worldwide. As more companies and developers embrace blockchain to decentralize critical infrastructure, the market could expand dramatically, drawing new participants, investors, and developers into the ecosystem.
Carlos Lei Santos, CEO and co-founder of Uplink, a firm involved in the DePIN sector, believes that the rise of decentralized wireless hardware connectivity will play a key role in the development of this industry. In an interview with Cointelegraph, Santos emphasized that DePIN has the potential to produce the next $1 trillion company, driven by the growing demand for decentralized wireless solutions.
This sentiment reflects the growing recognition of the need for distributed and resilient computing environments, where computing power is not concentrated in a few centralized data centers, but instead spread across decentralized networks of physical infrastructure. As DePIN technologies continue to mature, they may fundamentally change the structure of the global computing landscape, leading to a more open, robust, and accessible digital economy.
Real-World Applications and Growing Interest
The WEF report highlights how decentralized applications (dApps) like Bittensor and Threefold are already demonstrating the growth potential of DePIN. These applications have shown how decentralized infrastructure can be used to create more interoperable systems for both AI and blockchain networks.
Bittensor is a decentralized platform designed to enable the development of decentralized AI models. By decentralizing the process of AI training, Bittensor ensures that models remain diverse and contextually relevant, while also allowing contributors to be compensated through blockchain-based incentive systems. This kind of open, collaborative AI development aligns with the DePIN vision of creating more inclusive and community-driven digital economies.
Meanwhile, Threefold offers users a sovereign digital identity system for Web3 applications, helping users control their data while contributing resources to the decentralized network. By facilitating decentralized cloud storage and computing, Threefold empowers individuals and organizations to participate in tokenized digital economies, further driving the adoption of DePIN.
As more platforms and infrastructure projects emerge, the DePIN market will increasingly be seen as a key enabler of tokenized finance and decentralized governance. The potential for integrating blockchain with physical infrastructure, whether for energy grids, telecommunications, or AI-driven smart cities, opens up new possibilities for more efficient, sustainable, and secure systems.
Competing with Centralized Models
Despite the promising growth prospects for DePIN, it is important to consider the challenges posed by traditional, centralized infrastructure models. Companies and governments currently rely heavily on large-scale, centralized solutions for many critical sectors, including energy, telecommunications, and data storage. These systems are typically more efficient in terms of scaling and ease of management but lack the transparency, security, and equity that blockchain and decentralized models offer.
DePIN's success will depend on its ability to overcome the efficiency gaps inherent in decentralized networks, particularly in terms of transaction processing speed, scalability, and security. While decentralized models can provide greater resilience and redundancy, they often face significant challenges in terms of cost and complexity, especially as the infrastructure grows.
One area where DePIN may find early traction is in the creation of decentralized energy grids and smart cities, where blockchain can offer significant advantages over traditional systems. By using blockchain to track energy usage and transactions, for example, DePIN could enable peer-to-peer energy trading, more efficient energy distribution, and enhanced grid reliability.
The Road to $3.5 Trillion: What’s Next for DePIN?
As the DePIN market continues to grow, key industry players are working to establish partnerships, build infrastructure, and gain regulatory approval to ensure the sector’s sustainability. In particular, the increasing focus on decentralized wireless networks, AI collaboration, and tokenized finance will likely drive DePIN’s development in the coming years.
However, achieving the $3.5 trillion market size projected by 2028 will require significant investments in infrastructure, cross-industry collaboration, and global regulatory alignment. As DePIN technologies mature and gain broader acceptance, the market will likely see the emergence of new business models, products, and services, each designed to leverage decentralized infrastructure for the next generation of digital services.
The future of DePIN looks bright, with the potential to reshape industries, decentralize traditional power structures, and create a more inclusive and resilient digital economy. The next few years will be critical in determining how quickly this market can scale and how it will integrate with traditional infrastructure systems, paving the way for a new era of omni-computing and tokenized digital finance.
As blockchain and AI converge to fuel the growth of DePIN, the market is poised for exponential growth. With projections placing the sector at $3.5 trillion by 2028, it’s clear that decentralized physical infrastructure networks have the potential to redefine how industries approach infrastructure, data, and finance in the coming decades.