Decentralization in Cloud Computing: Reshaping the Sector through DePINs and DeRENs
Summary:
The cloud computing sector is expected to reach a market capitalization of $2.3 billion by 2032 with risks associated with the dominant players' systemic failure. Decentralized Physical Infrastructures (DePINs) and Decentralized Resource Networks (DeRENs) are emerging models anticipated to mitigate such risks and increase data security, transparency, and cost-effectiveness. A report by Cointelegraph Research and SwanChain discusses this in depth. It highlights the role of SwanChain in providing a decentralized cloud computing platform, potentially cheaper and efficient than traditional cloud services. The report also explores the fast growth of the DePIN sector and compares various DePIN projects. The info in this article is for informational purposes only and doesn't constitute investment advice.
The cloud computing industry has seen exponential growth in recent years, with the market expected to soar to $2.3 billion by 2032. Yet, with a few global leaders such as AWS, Azure, and Google Cloud dominating the market, the risk of detrimental impact due to an operational failure of these platforms is a concern for companies and retail users alike. A case in point would be the sizable outage of Meta in 2024 that impacted a minimum of 600,000 people across the globe. Emerging models like DePINs (Decentralized Physical Infrastructure) and DeRENs (Decentralized Resource Networks) promise to mitigate such risks and improve data security, transparency, and cost-efficiency. A report by Cointelegraph Research and SwanChain delves into these issues impacting the cloud computing sector and evaluates how DePINs and DeRENs could reshape it. Get the full report free of charge here.
Fueled by an escalating need for processing power due to sophisticated AI models (a sector foreseen to touch the $1.4 trillion mark by 2029), the growth of DePINs and DeRENs is seeing a positive turn. These new players offer a cost-effective point of entry for AI developers by providing affordable computing power. For instance, Flux, a market contender, offers cloud computing services similar to Google Cloud but at a fraction of the cost ($5 vs $300), a point detailed extensively in the report.
SwanChain's role in this space involves providing a decentralized cloud computing platform capable of delivering computational power, storage, and bandwidth for AI applications, smart contracts, and other decentralized services. It functions as a bid-market for AI computation and storage where resource requests get matched with providers. This unique model saves time and monetary resources in comparison to traditional cloud services. As per SwanChain, running a Chat GPT-like model on its network could be up to 50% cheaper than leading market companies like AWS. For an in-depth analysis of SwanChain and the DePIN ecosystem, read the full report here.
SwanChain's ecosystem relies on a decentralized network of hardware providers to perform computing tasks for users. This layer takes various blockchain tokens as payment. Zero-knowledge (ZK) computing products feature predominantly among its services. Nearly 350,000 ZK computing tasks were processed within its initial two months, signifying its ability to scale resources for ZK applications.
The report further examines the swift growth of the DePIN sector and compares noteworthy DePIN projects, such as Filecoin and Render Token, offering real-world examples of how decentralized networks can enhance AI applications.
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Published At
6/24/2024 9:10:00 PM
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