On November 26, Binance founder Zhao Changpeng stated, 'I do not oppose Meme, but Meme coins have now become 'a bit' strange. Let's use blockchain to build real applications.' Indeed, the market has focused too long on Memes, neglecting many highly promising practical blockchain projects, leading to their severe undervaluation. And Network3 is such a high-potential Edge AI Infra project that is expected to shape a new myth of hundred-fold coins in the practical AI field.
1. Project overview: Pioneer of DePIN and Edge AI.
As a new generation of decentralized edge artificial intelligence infrastructure, Network3 integrates blockchain token economics, decentralized physical infrastructure networks (DePIN), federated learning, and edge artificial intelligence (Edge AI), aiming to break the monopoly of large tech companies on AI development and narratives, and provide services for global AI developers.
Through a decentralized federated learning framework, Network3 achieves collaborative model training without sharing users' raw data, providing dual protection for privacy and data security. Meanwhile, the token incentive mechanism in the distributed node network lowers the participation threshold and ensures the stable operation of the network.
Recently, Network3 has demonstrated remarkable growth potential—node numbers increased by over 100K week-on-week, with a growth rate of 25%. According to DePINscan data, Network3 has surpassed 507,261 nodes distributed across 188 countries and regions, exceeding the well-known DePIN project Helium, ranking fifth globally. This large-scale network provides strong support for AI application scenarios while promoting the democratization of computing power and data.
2. Market prospects: New opportunities in the trillion-dollar blue ocean.
The combination of DePIN and Edge AI is at the forefront of a technological revolution, and its potential has yet to be fully explored. Network3, with its technological layout, node scale, and token incentive model, occupies a commanding position in this transformation.
2.1 DePIN: The physical world gateway of Web3.
Decentralized Physical Infrastructure Network (DePIN) is an important technology that connects blockchain with the real world. It incentivizes users to contribute real-world resources (such as hardware, data, computing power, etc.), forming a large-scale distributed network to support on-chain and off-chain applications.
According to the report published by Messari (State of DePIN 2023), the market potential of DePIN is enormous:
2024: Approximately $2.2 trillion.
2028: Expected to reach $3.5 trillion.
Annual compound growth rate (CAGR): 12.31%.
Currently, the total market value of the DePIN track in the crypto market is only $1.33 billion, accounting for less than 1% of the entire market. This significant undervaluation indicates that the DePIN field is still in the early stages of development, and its market potential has yet to be released. With more enterprises and developers participating, DePIN is expected to usher in a rapid growth period.
2.2 Edge AI: A key technology driving the transition of AI from centralized to decentralized.
Edge AI refers to the technology that executes AI model inference and computation locally on the device side (such as mobile phones, sensors, or mining machines), compensating for the privacy, security, and real-time deficiencies of traditional cloud AI.
According to Fortune Business Insight data:
2024: The global edge AI market size is $27.01 billion.
2032: Expected to grow to $269.82 billion.
Annual compound growth rate (CAGR): 33.3%.
Compared to centralized AI, Edge AI performs better in data privacy, bandwidth efficiency, and latency optimization, gradually becoming a strategic focus for tech giants. Companies such as NVIDIA, Google, Microsoft, Intel, and Huawei have invested heavily to seize market share.
In summary, the combination of DePIN and Edge AI not only enhances data privacy and computational efficiency but also opens up a broad prospect for long-term growth. In the face of a vast market blue ocean and strong growth expectations, the investment potential of Network3 cannot be ignored.
DePIN Sector Map includes Network3, data source: Messari.
3. Token economics: Clear investment returns.
3.1 Economic model.
According to the official economic white paper data, the total supply of the Network3 token N3 is 1 billion, of which 75% will be distributed to nodes and users through mining (40%) and AI model training (35%). This high proportion of community incentive design ensures the long-term vitality of the ecosystem. Additionally, users can obtain veN3 tokens through staking in the future, allowing them to share 75% of the network transaction fee revenue, further increasing profit avenues.
3.2 Hardware performance.
According to DePINScan data, the current daily earnings of the Edge V1 mining machine are approximately $9.2, with a payback period of about 100 days. The current Edge V1 mining machine has achieved dual mining support for the IoTeX network token IOTX, allowing users to earn both N3E and IOTX token rewards simultaneously. Furthermore, the team is planning to integrate more public chains to maximize earnings.
3.3 Token distribution.
Mining and AI model training: 75%
Team allocation: 12%
Funding round: 6%
Liquidity and airdrop: 5%
Ecosystem development rewards: 2%
4. Financing and strategic planning: Favor from leading institutions.
Network3 has secured $5.5 million in funding, with investors including Borderless, EV3 Labs, IoTeX Eco Fund, Mask Network, Bing Venture, Waterdrip Capital, SNZ, and Candaq, among other top institutions. The funds will be used for technology research and development, global expansion, and ecosystem building.
According to official sources, a new round of tens of millions of dollars in financing has begun, with several leading institutions confirming their participation.
5. Competitive analysis: Unique advantages in technology architecture.
Network3's focus on decentralized edge AI and federated learning gives it unique advantages in technology, market positioning, and long-term development. Compared to Aethir and Grass, Network3's strategy of combining privacy protection, decentralized AI training, and edge computing aligns better with the future demands of AI applications, especially in the context of increasing attention to privacy and compliance. Therefore, when evaluating decentralized infrastructure projects, the long-term innovation potential offered by Network3 may yield higher returns for investors.
6. Milestone events.
Edge V1 mining machine is selling fast.
On August 10, 2024, the N3 Edge V1 mining machine launched by Network3 sold out within seconds of going live, and there are currently over 5,000 devices mining online simultaneously. Additionally, the N3 Edge V1 mining machine can be used for mining on the Network3 network and integrates the IoTeX on-chain identity module ioID and data verification module, achieving dual mining with the IoTeX network token IOTX.
Network3 Local LLM is about to launch.
According to official community news, the large language model Network3 Local LLM designed based on the Network3 network has completed internal testing and will soon launch to provide services to users. According to official information, Network3 Local LLM features free use, no geographical restrictions, independent algorithm design, earn while using (Prompt to earn), and on-device inference.
Network3 TGE and first round of airdrop are about to launch.
According to official news, Network3's TGE (Token Generation Event) and airdrop plan are about to launch, marking an important milestone in the platform's development and initiating a new growth phase for Network3. The schedule for TGE, airdrop rules, eligibility requirements, token distribution, and other specific information is expected to be announced soon. Investors can follow Network3's official channels and social media platforms for the latest updates.
Conclusion.
Network3, with its unique technological advantages, clear market positioning, and community-driven business model, offers potential opportunities for long-term investors. Managing hardware deployment costs and competitive challenges are potential hurdles, but looking ahead, with the advancement of TGE and expanding market demand, Network3 has the potential to attract more users and developers, becoming an important driving force in the DePIN and decentralized AI fields. For investors, this is a high-potential track worth paying attention to!
