Over the last few years, the cloud computing industry has experienced significant growth, with market capitalization expected to reach $2.3 billion by 2032. However, this market is currently dominated by a few major players like AWS, Azure, and Google Cloud. A systemic failure of one of these key players could have a devastating impact on companies and retail users worldwide, as evidenced by Meta’s outage in March 2024 which affected over 600,000 people globally.
To address the risks associated with centralized cloud computing, technologies such as DePINs (Decentralized Physical Infrastructure) and DeRENs (Decentralized Resource Networks) have emerged. These decentralized systems not only reduce the likelihood of large-scale incidents but also enhance data security, transparency, and efficiency while cutting operational costs. A recent report by Cointelegraph Research and SwanChain explores how these technologies can revolutionize the cloud computing market.
The growth of DePINs and DeRENs is being driven by the increasing demand for computationally intensive AI models, which are projected to reach a market value of $1.4 trillion by 2029. These decentralized systems offer AI developers more affordable access to computing power, with platforms like Flux providing similar services to Google Cloud at a fraction of the cost. The details behind these cost savings are outlined in the report.
SwanChain plays a crucial role in the DePIN space by offering a decentralized cloud computing platform that provides resources such as computational power, storage, and bandwidth for AI applications, smart contracts, and other decentralized services. Users can post requests for resources on the platform, which are then matched with providers offering the necessary capabilities. This bidding market approach streamlines the process and reduces costs compared to traditional cloud services.
Furthermore, SwanChain’s ecosystem is built on a decentralized network of hardware providers that execute computing tasks on behalf of users. The platform supports payments in various tokens across blockchains and offers services based on zero-knowledge (ZK) computing technology. The report highlights SwanChain’s success in processing almost 350,000 ZK computing tasks within two months of launch.
In addition to SwanChain, the report provides insights into the rapid expansion of the DePIN sector and compares notable projects like Filecoin and Render Token. These case studies demonstrate how decentralized networks can enhance AI applications and drive innovation in the industry.
The Cointelegraph Research team is dedicated to providing accurate and insightful content on blockchain technology and industry trends. Comprised of experts in finance, economics, and technology, the team leverages data from various sources to deliver comprehensive industry reports and analysis.
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