While decentralization is the crux of the Web3 industry, much of its infrastructure still relies on centralized cloud services, exposing the system to inherent centralized risks. Trowbridge argues that decentralized computing is a critical missing piece for Web3 to reach its full potential. The vision of Web3 remains incomplete if it continues to depend on centralized cloud servers like Microsoft, AWS, Google Cloud, etc., undermining the principles of privacy, security, trust, and autonomy that decentralization promises.

We recently interviewed Tom Trowbridge, Co-Founder at Fluence Labs, in person during Devconnect in Bangkok to understand what they’re building in the decentralized infrastructure space. In this interview, we dive deeper into how decentralized computing is a fundamental component for the Web3 ecosystem to flourish.

Generating Real Revenue is Important for DePIN Companies

While crypto had traditionally been used for consensus algorithms or DeFi protocols, integrating it with physical infrastructure was an innovative concept that demanded its own terminology. DePIN’s emergence emerged by the maturity of software and crypto-economics, honed and proven across various protocols.

With respect to how users can get involved in the DePIN ecosystem, there are different angles to consider depending on whether you’re a provider or an end customer. For example, as a provider, you can offer services like computing power, but you can also be a consumer, buying data and using the resources. This dual role fascinates many users, offering flexibility and a unique way to engage with the ecosystem. Trowbridge believes the most exciting aspect for users is generating revenue through decentralized platforms, with clear links between their contributions and economic rewards. It creates a sustainable model driven by the network’s economics and does not rely on subsidies or temporary pricing. For example, it’s a real deal when the ability to offer cloud infrastructure at a price almost 80% cheaper than centralized providers is offered. It is about creating an alternative to the centralized cloud that is economically viable and censorship-resistant.

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Author: Shilika Jain