Data Layer

As of May 2024, the DePIN market is valued at $37 billion (CoinMarketCap, May 2024). With a projected market size of $3.5 trillion by 2028 (Messari), the sector holds vast opportunities awaiting realization.

However, there are significant challenges that could slow or delay the growth of the DePIN market. These include:

Untapped Data Potential

Most companies operating machines and IoT devices are still entrenched in Web2, or their machines are not connected to the internet at all, resulting in generated data being completely untapped, underutilized, and non-monetized. In a trillion-dollar market, almost every machine remains off-chain, meaning that 99.9% of the data in this sector is still locked for the Web3 world.

Underutilized Machine Data

Many traditional Web2 companies are not effectively using the valuable data their machines generate. This results in a fragmented data ecosystem where the potential of machine-generated data remains untapped and underutilized across various industries.

Lack of Infrastructure

Many machines and IoT devices produce vast amounts of data that could be extremely valuable if properly utilized. However, due to a lack of infrastructure and knowledge, these companies often do nothing with this data, missing out on opportunities to improve operations and generate new revenue streams.

No Standardized Data Layer

There is no standardized, modular data layer focusing on machine data to handle the complex needs of AI, such as processing, labeling, and training raw data. Additionally, the absence of a sustainable business model makes it difficult to connect data supply and demand among Web2, Web2.5, and Web3 stakeholders, further complicating the effective use of this data.