How to view the subsequent market impact of io.net decentralized cloud computing network

Written by: Haotian Source: substack

io integrates the three major narrative directions of AI+DePIN+Solana, which is related to whether the Crypto industry can find a main rising wave that detonates the bull market through AI. To some extent, it is not an exaggeration to call it the "Nvidia of the currency circle"? Next, let me briefly talk about my opinion:

1) io was highly expected when it was born. Whether it is VC, miners or retail investors, they are eager for io to be able to set a good sign in the direction of Crypto's integration with AI, and there are great expectations for leading projects in the AI ​​direction. The decentralized cloud computing solution provided by io hits a primary contradiction in the direction of AI large model training: the "demand" for huge computing power for training, fine-tuning and reasoning of small and medium-sized models and the increasing "cost" of centralized computing power.

The emergence of io's distributed cloud computing platform aims to solve this contradiction. By mobilizing the idle computing power of IDC data centers, cryptocurrency mines and ordinary users, a large amount of idle and low-cost computing power has been accumulated, and based on the Crypto Tokenomics incentive framework, a series of new contract standards and hardware equipment standardization, etc., the computing power that was originally almost impossible to "collaborate" has been integrated to generate application efficiency.

Therefore, the emergence of distributed computing power platforms such as io is the first rigid demand scenario for the combination of Crypto governance framework and AI training demand scenarios, and it is the first hill that Crypto has conquered in the field of AI.

2) The LLM large language model led by OpenAI is gradually "monopolizing" in the context of the Internet market. If we observe the evolution process from ChatGPT3.5-4.0 to Sora and then to 4o, we will find that this type of large model is becoming more intelligent and multimodal.

This type of large model can integrate pictures, text, videos, and even combine robots and IoT devices to achieve real-time dynamic output. But all these premises are based on the concentration of computing power and high energy consumption. If this continues, centralized AI services will gradually tend to oligopoly, and a few technology companies will control the development direction of AI technology, which will inevitably limit diversified innovation. The emergence of distributed computing power platforms such as io can provide these long-tail needs with a low threshold, more flexible, more customized platform, and can also play the incentive value of the Tokenomics community, helping them to play their potential value in more vertical and segmented application scenarios (supply chain finance, precision medicine, personalized education, etc.). Moreover, Tokenomics can bind multiple stakeholders such as computing power providers, developers, and users, which is suitable for playing a miraculous role in some marginal areas that traditional computing power resources may ignore. Concentrated computing power will be used first in large language models, machine learning and other fields with strong versatility, wide application range, and broader commercial realization prospects.

This is the core reason why I always think that AI+DePIN can become the main rising wave of the bull market, because the popularity of this track is not limited to the internal volume of the existing Crypto industry, and can attract incremental users and project parties to the Crypto market through real demand supply.

3) The basic business of io directly targets cloud services such as Amazon and Alibaba Cloud, builds an IO Cloud cluster, and integrates GPU resources from the supply side such as Render Network and Filecoin, which makes the GPU resources it provides extremely scalable. Therefore, once the leading position is formed, it will naturally further reduce its cost-effectiveness by aggregating the resources of other idle computing power platforms.

Of course, if io can gain a foothold in the distributed cloud computing market, it will also directly drive the original Crypto industry's cloud storage (@Filecoin), distributed coprocessors (Livepeer), distributed computing (Golem), cloud intellectual property IP rights confirmation (@StoryProtocol), and derivative directions such as DePIN infrastructure, middleware, edge AI, and RWA.

Some people may criticize that io's landing scenario is currently too narrative, but at a time when Crypto is strongly emotionally driven, if io can activate the popularity of a series of related projects upstream and downstream of AI+DePIN, the value of its own narrative layer will be enough to have industry barriers.

In addition, DePIN is still hardware mining on the surface, but the catalytic effect of the miner chain, node network architecture, and software and hardware integration behind it will introduce a wider range of incremental market users to participate. (Don't underestimate the magic of Pan Circle)

Although it is too early to call it "Nvidia in the cryptocurrency circle", it can be vividly perceived that the performance of io in the future will boost the entire AI+DePIN track. In any case, it should be given corresponding market expectations. This round of bull market with twists and turns needs a main rising wave to kick off.