The cloud computing sector is on an impressive growth trajectory, with its market capitalization predicted to quadruple by 2032 to a staggering $2.3 trillion.
However, this rapid expansion comes with its own challenges. Market concentration in a few large companies such as AWS, Azure, and Google Cloud poses significant risks. A systems failure at any of these large companies can have far-reaching effects on businesses and individuals around the world, as evidenced by the Meta outage in March 2024 that affected at least 600,000 people worldwide.
This is where DePIN (Decentralized Physical Infrastructure) and DeREN (Decentralized Resource Network) come in. These cutting-edge technologies offer practical solutions that not only protect against the vulnerabilities of centralized systems, but also increase the level of guarantees regarding the security and transparency of data processing, with the added benefit of reducing operational and management costs.
A new report published by Cointelegraph Research and SwanChain addresses the most pressing issues in the cloud computing space and how DePIN and DeREN can truly democratize this important market.
The growth of DePIN and DeREN is driven by the rise of compute-intensive AI models, with a market size expected to reach approximately $1.4 trillion by 2029. These decentralized networks are making computing power more affordable, democratizing AI development.
If smart contracts can enable Web 3.0, they might find a way to level the playing field for AI. For example, Flux offers Google Cloud-level services for $5, compared to the $300 Google used to charge. The report details the factors behind this dramatic cost reduction.
SwanChain: A pioneer in decentralized cloud computing
SwanChain sits at the center of this revolution, having built a decentralized cloud computing platform that allows access to resources such as computing power and storage. It acts as an AI computing and storage bidding marketplace, where users post requests for resources and providers fulfill them. This unique approach significantly reduces the time and costs associated with traditional cloud services.
By operating on its own infrastructure network, the SwanChain team believes that running a model like ChatGPT can be around 40-50% cheaper than using a large market player like AWS.
AI and ZK Computing: The Next Frontier
SwanChain’s ecosystem is built on a decentralized network of hardware providers that perform computing tasks for users. The platform supports payments with various tokens across blockchains and provides services based on zero-knowledge (ZK) computing technology. Just two months after its release, the platform has processed nearly 350,000 ZK computing tasks, demonstrating its ability to provide large-scale computing resources for ZK applications.
The report also provides a comprehensive overview of the rapidly expanding DePIN sector, comparing notable projects such as Filecoin and Render Token. These case studies demonstrate how decentralized networks can power AI applications and reshape the cloud computing landscape.
Cointelegraph Survey: Driving Industry Insights
As the cloud computing sector continues to evolve, DePIN and DeREN are poised to play a key role in shaping the future of the sector by providing more resilient, cost-effective and accessible solutions for both businesses and individuals.
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