The AI boom is putting immense pressure on data centers and traditional energy resources. Decentralization, through DePIN (Decentralized Physical Infrastructure Networks), could offer a solution. Mitch Liu, CEO and Co-Founder of Theta Network, explains how.

Most users don’t consider the energy consumption when using ChatGPT. We’ve grown accustomed to instant results, whether it’s finding nearby Thai food or planning a two-week trip to Thailand. The user experience remains seamless, but the energy demands have escalated significantly.

A ChatGPT query reportedly consumes ten times more power than a Google search. With current energy infrastructure nearing its capacity, the GenAI industry is concerned about overloading data centers and reverting to non-renewable energy sources. Even OpenAI’s Sam Altman has emphasized the need for clean energy to address the impending GenAI compute crisis.

The Promise of Decentralized Compute Networks

Decentralized compute networks offer a promising solution to the GenAI energy challenge. Utilizing DePIN can drive technological advancements, democratize access to powerful resources, and onboard more users into web3. It’s a compelling argument for the potential of green crypto.

Harnessing Energy Potential

The solution to powering the GenAI boom could lie in home offices. Decentralized networks can leverage edge nodes operated from personal computers and laptops. If a computer meets the minimum hardware requirements, setting up a node operating dashboard takes just a few minutes. The network then utilizes untapped GPUs to run compute tasks in the background. This decentralized edge computing model can balance computational loads more effectively, reducing latency and enhancing efficiency.

DePIN compute networks not only provide new power sources but also reward the power suppliers. For example, Theta’s EdgeCloud node operators earn TFUEL or TNT-20 tokens for completing compute jobs. They can stake these tokens to help govern and secure the blockchain. This is similar to NEAR’s cloud computing for blockchain projects or Flux for dapps, where participants receive tokens for lending their resources to the network.

Decentralized compute networks present a win-win scenario. Node operators can exchange their reward tokens for other assets, while GenAI applications can access the energy they need. Through attractive rewards, DePIN also lowers the barriers to web3 entry. As seen with numerous airdrops, rewards are an effective way to encourage more users to explore and contribute to the ecosystem.

Promoting Sustainability

Environmentalists advocate for re-using existing resources to combat climate change. DePIN protocols apply this principle to computing networks by repurposing underutilized hardware. Most home computers do not operate at full capacity 24/7. DePIN repurposes their CPU/GPU, reducing the need for manufacturing new devices and maximizing available resources while enhancing network efficiency. Although total energy usage might increase due to higher GPU availability, the decentralized model ensures sustainable energy usage.

Despite its potential, public skepticism during the DePIN rollout is expected. The industry must demonstrate its maturity beyond incidents like the FTX collapse. Environmental concerns about mining remain prevalent arguments against cryptocurrencies. Therefore, DePIN use cases that offer green solutions are incredibly valuable, especially for popular AI tools. This further validates DePIN as a path toward mainstream adoption.

Democratizing GenAI Access

The issue extends beyond energy. Access to high-performance GPUs has traditionally been limited to large enterprises. Cloud providers are expensive, and their packages often don’t meet the needs of small businesses. This exclusivity has hindered smaller entities from leveraging advanced AI tools, perpetuating financial barriers that keep power concentrated among the wealthy. GenAI can support breakthroughs in fields like rare disease treatment and crypto transactions, which should not be restricted to a select few.

Fortunately, DePIN democratizes GPU access, making it affordable and accessible to a broader audience. Universities, startups, and independent researchers can now harness AI’s power without financial constraints. This mission aligns with the blockchain community’s goal of financial inclusion and connecting more people to digital assets.

Moreover, moving away from centralized providers reduces the risk of relying on a single entity. The crypto industry is acutely aware of the dangers posed by a single bad actor. Decentralized GPU access for more institutions prevents overreliance on a single data center or AI company. As AI becomes increasingly integrated into our lives, it’s crucial that no single company dominates this landscape.

The Future of DePIN and GenAI

This year marks a significant period for both DePIN and AI. As people flock to vacation spots, they may not realize AI’s pervasive influence, from facial recognition at boarding gates to ChatGPT assisting with travel plans. These applications require substantial energy to enhance our lives.

DePIN applications will emerge just as rapidly, offering opportunities to monetize personal resources, whether it’s CPU, GPU, or GPS history. These developments can coexist harmoniously. DePIN can ensure that AI development remains energy-efficient and climate-friendly. In the AI age, GPUs are the new oil, and we should treat them accordingly.

Source: Coindesk