Over ten years ago, the blockchain industry piqued my interest because I saw an opportunity to address the issues present in the Internet of Things (IoT). Fast forward to today, both industries are flourishing, but they still face significant challenges regarding their business models. It seems that once bad business models take hold, they are challenging to escape, much like the original internet.
One of the primary issues with the Internet of Things is its business model. Companies require a steady stream of revenue to sustain their products, but consumers are hesitant to pay for subscriptions to maintain everyday items like door knobs or refrigerators. This dilemma often leads to products being discontinued when companies decide to stop supporting them, leaving consumers with useless devices.
Blockchain technology, specifically the Decentralized Physical Infrastructure (DePIN), presents a potential solution to this problem. By leveraging open-source technology and decentralized systems, we can create IoT networks that are self-managing and more sustainable in the long run. This approach aims to address the disparity between the lifespan of products and the lifespan of the product-line being sold by businesses.
The recurring costs associated with cloud infrastructure and software maintenance for IoT devices can erode a company’s margins over time. This situation often prompts companies to discontinue online services for products, rendering them useless. As a consumer, experiencing sudden fees to keep smart devices operational can be frustrating and lead to replacements rather than continued support.
Despite these challenges, the IoT industry has made significant progress in recent years. Devices that comply with standards like HomeKit and utilize new controls and radios are designed to function without constant internet connections. However, for truly interconnected smart homes and experiences, internet connectivity and cloud computing infrastructure are essential.
To achieve this interconnectedness sustainably, decentralized cloud infrastructure is crucial. By utilizing spare computing capacity and network connectivity in devices, we can run more complex applications at the network level. This approach allows for efficient management of power consumption, AI systems, and other advanced features without the need for extensive data centers.
The advancement of smart home devices, with their embedded computing power, presents an opportunity to build a blockchain-linked decentralized cloud computing infrastructure. By enabling devices to sell excess computing capacity when not in use and purchase additional capacity as needed, a self-sustaining network infrastructure can be established. This model eliminates the need for constant financial injections from original product sellers to keep the system operational.
Blockchain technology is well-suited for creating accounts, ledgers, and agreements necessary for transactions between smart devices. The integration of cloud computing, blockchain, and the Internet of Things has been a long-time aspiration, and we may finally be nearing a convergence of these technologies.
In conclusion, the potential of blockchain-enabled solutions like DePIN to revolutionize the Internet of Things industry is significant. By addressing the challenges posed by unsustainable business models and fostering a self-sustaining network infrastructure, we can unlock the true potential of interconnected smart devices and experiences.