The product which supports group lending for MFIs/NBFC/Banks

eSthenos Technologies

Hey Hackers! I’m Roxana Murariu and I’m a Senior Software Engineer at . Spencer Stuart First of all, a huge thank you to the HackerNoon community and staff for nominating me for a 2021 Noonies award! I've been nominated in the following categories, please do check out these award pages and vote: HackerNoon Contributor of the Year – CREATIVITY HackerNoon Contributor of the Year - DESIGN-THINKING HackerNoon Contributor of the Year – LIFE HackerNoon Contributor of the Year - LIFE-LESSONS HackerNoon Contributor of the Year – PHILOSOPHY Learn more about my thoughts and opinions on tech and my journey in the tech industry via the interview below. 1. What do you do and why do you do it? (tell us your story) I work as a senior software engineer for Spencer Stuart in their Dublin office, where I use many interesting front-end technologies. It is a fast-paced environment with supportive colleagues and lots of growth opportunities. 2. Tell us more about the things you create / write / manage / build! I write articles on about parenting, self-improvement, or tech essays. Writing is rewarding as I learn things I would never have thought to research on my own. my site For example, , the Zen concept of adopting the attitude and mindset of a novice who learns a new practice for the first time, led me to Plank's principle, "Science progresses one funeral at a time." researching Shoshin Or, as Max Plank himself explained: An important scientific innovation rarely makes its way by gradually winning over and converting its opponents: it rarely happens that Saul becomes Paul. What does happen is that its opponents gradually die out, and that the growing generation is familiarized with the ideas from the beginning: another instance of the fact that the future lies with the youth. But what I found absolutely intriguing is that did research how the premature deaths of star scientists working in the life sciences affect the respective field literature. What was discovered was in line with Planks’ principle, unfortunately. Collaborators of star researchers publish fewer papers in the fields after their prominent colleague's death, and the flow of articles by non-collaborators increases drastically. "It's just that, once safely ensconced at the top of their fields, maybe they tend to overstay their welcome." a study "The conclusion of this paper is not those stars are bad," says Pierre Azoulay, the study co-author. Another project is a collaboration with my husband. We will create a video game written in Unity, a story-driven fantasy role-playing game with collectible card elements. 3. How did you end up on your current career path? Do you like it? I studied informatics at the Informatics Liceum Grigore C. Moisil from Iasi, Romania. Then, I enrolled at the Faculty of Informatics in Iasi. There were some moments when I thought to switch careers, but looking back over what I achieved with and through my work, being a software developer is the right career for me right now. As I am most interested in front-end technologies, I suffered from JS frameworks fatigue when building software felt like building castles on quicksands. Now I am more at ease with the sustained rhythm of front-end development as on the one hand, the front-end ecosystem matured and on the other hand, I only follow a few trusted front-end news outlets. 4. What tech are you most excited or passionate about right now and why? Quantum computing has immense potential by allowing scientists to solve currently unsolvable problems, targeting various domains such as cryptography, finance, pattern matching, or medical research. I want to learn more about this domain, and I intend to spend some time during the holiday season reading about it. 5. What tech are you most worried about right now and why? Every week there is another new thing to worry about: the development of the COVID-19 pandemic, social and racial injustice, the attack on privacy and societies from social networks, wars, AI job automation that I wrote in . another HackerNoon article I finished , the 2020 winner of the  Nobel Prize in Chemistry, alongside Emmanuelle Charpentier, for their groundbreaking work on CRISPR gene editing technology. This technique allows editing parts of the genome by removing, adding or altering sections of the DNA sequence. The implications of gene editing are profound as it might help treat genetic diseases, including cancer, save endangered species, or innovate the biofuel industry. Walter Isaacson's biography of Jennifer Doudna As Isaacson notes in his book, The reason that CRISPR is the most important discovery since DNA's structure is that it not only describes the world, as we did with the double helix, but makes it easy to change the world. Unfortunately, there is a dark side to gene editing. Feng Zhang, a biochemist well known for his role in the development of CRISPR technologies, says in Isaacson's book: Look at what parents are willing to do to get kids in college. Some people will surely pay for genetic enhancement. In a world in which there are people who don't get access to eyeglasses, it's hard to imagine how we will find a way to have equal access to gene enhancements. Imagine what that will do to our species. At its worst, gene editing could aggravate and even encode social inequality. But above all, the tech question that terrifies me the most is that we might not be moving the needle fast enough to combat climate change. Millions are at risk of displacement as areas will become uninhabitable. Then, we have water wars, drought, famine, wildfires and so on. Of course, things are not entirely desperate. Look how far we have come in the last decades due to technological discoveries. Gene editing could bring drought-resistant and disease-resistant crops that will be significant advantages against food scarcity. Then, we also have better technology to predict storms, floods, wildfires. Some voices suggest that through modelling better catalysts for carbon capture. quantum computing can be used to help environmental efforts So, I won't end this question negatively, and I will leave about hope in the face of climate change. this fantastic article 6. If we gave you 10 million dollars to invest in something today, what would you invest in and why? If only! I took this question to my husband, and I was delighted to find out that we would both do the same thing. First, a large part of the sum would go into our business to develop the stories we have in mind faster. The rest of the money would go to donations to fight poverty and offer better education to children. I was impressed by the book written by Esther Duflo and Abhijit Banerjee, y, describing their approach to fight poverty through scientific evidence. Poor Economics: A Radical Rethinking of the Way to Fight Global Povert They ran hundreds of randomized controlled trials to find which method yielded better results. For example, they discovered that deworming children in Kenya for two years could bring thousands of dollars PPP lifetime income gains. Minor investments in childhood nutrition (in Kenya, deworming costs a few dollars per year per person) can produce significant ROI. I fully agree with Esther's opinion quoted below, and I would donate money to the Poverty Action Lab she co-founded: It is very easy to sit back and come up with grand theories about how to change the world. But often, our intuitions are wrong. The world is too complex to figure everything out from your armchair. The only way to be sure is to go out and test your ideas and programs and to realize that you will often be wrong. But that is not a bad thing. It leads to progress. A quote of Esther Duflo from Matthew Syed’s book, Black Box Thinking 7. What are you currently learning? I recently gave a technical presentation about , a state management library for Angular, to my colleagues. It was a perfect opportunity to scour the Ngrx Github code and see this library in a new light. NgRx 8. What’s the best advice you’ve ever given someone? If we didn't acquire the mental models that let us perceive a situation differently, words would fall on deaf ears. So, I learned that sometimes, people are not looking for advice but a reinforcement of their position. Nevertheless, I started writing , and I would say that my articles on and might be some of my better advice. a series of letters to my daughter building a “f*ck-off” fund how to choose a career strategically 9. What’s the best advice you’ve ever received? The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn. writer and futurist Alvin Toffler It is remarkable how Alvin Toffler predicted in the 1970s this trend of reinventing ourselves periodically through learning, unlearning, and relearning. Especially for software engineers, if we don't systematically re/up-skill, we are condemned to become irrelevant. I use this quote as a reminder to employ a beginner's mindset, ask better questions and challenge my preconceptions and biases. About HackerNoon’s 2021 Noonie Awards The annual Noonie Awards celebrate the best and brightest of the tech industry, bringing together all who are making the Internet and the world of tech what it is today. Please be sure to , nominate, and vote for the people and companies who you think are making the biggest impact on the tech industry today. check out our award categories The 2021 Noonies are sponsored by: , , and . Thank you so much to these sponsors who are helping us celebrate the accomplishments of all our nominees. bybit Dottech Domains Avast

'If We Don’t Systematically Re/Up-Skill, We're Condemned to Become Irrelevant': Roxana Murariu

Silicon Valley has transformed the world of and is regarded by many as the center of innovation. And while for consumer internet companies this may be true, the tech world is increasingly becoming diversified. venture capital In Q3 of 2017 New York City exceeded San Francisco in terms of total venture dollars invested (thanks in large part to ). Look for this trend to continue as more and more entrepreneurs and investors enter the fray. WeWork Source: CB Insights And while the world is responding and increasingly building (and funding) early stage startups, California is still quite dominant as a player with $7.95B in 2017 Q3 funding alone. Source: CB Insights We have all heard about the Valley. Today let’s look at the other ecosystems and investors to learn all there is to know about early stage ROI. Here is what some of the elite investors interviewed on had to say: The Syndicate on Angel Investing in Facebook and Square and Combatting America’s Healthcare Crisis Esther Dyson Esther Dyson is a down to earth super angel that practically invented the category. Her incredible portfolio includes the likes of Facebook, , , Flickr, and many more. Square 23andMe Evernote Esther now runs Way to Wellville, a non-profit focused on curing America health crisis with a focus on education and early, preventative care. She serves on the boards of Evernote, and 23andme and is also a trained cosmonaut! Meetup Listen and Learn: How Esther hit big wins in Russia investing Esther’s no bullshit investment criteria What is wrong with healthcare in America and how we can try to fix it Why this super angel won’t start a syndicate Why businesses Esther invests in must have a strong business model The reason blockchain is overhyped Why VCs Should be Industry Agnostic and Avoid Silicon Valley with of Forefront Venture Partners Phil Nadel Phil Nadel is a managing partner and syndicate lead at Forefront Venture Partners/Barbara Corcoran Venture Partners where he leads one of the largest and most active angel syndicates on . In addition to being an accomplished investor and being a featured investor on the Shark Tank style Pitch podcast, Phil is also a published author, frequent conference speaker and all around thought leader in the world of early stage startup investing. AngelList Listen and Learn: Why Forefront Ventures is industry agnostic The reason YC companies and SF in general are overhyped and overpriced How to prevent conflict of interest in syndicate venture The big problem with West Coast investors The way to get great deals on early stage deals When to be valuation sensitive and what to do when deals go south Offered 1/4 of Facebook for $5M on Israel, Social Media and Cryptocurrencies Lou Kerner Lou Kerner is the founder and managing partner of Flight.vc’s Israeli Founder fund and the Social Internet fund. Before that, Lou pioneered social media with Bolt, the largest social media company of its time before being conquered by Myspace. Since then Lou has invested in the likes of , Facebook, Meetup.com, Klout, and more. Palantir Plated Listen and Learn: The secret story of social media What VCs will never tell you about deal flow Why Israeli is the place to invest How Tel Aviv compares to SF Why cryptocurrencies are disrupting the world as we know it Ways to validate traction and market caps ICOs, Ethereum, Italian Mountains and being Dave McClure’s Shadow with Stefano Bernardi Stefano Bernardi’s sat at both ends of the table. A YC backed founder and startup hustler, Stefano got into venture and angel investing early and never looked back. Stefano enjoys long walks in the Alps, investing and blogging about crypto and blockchain and helping European founders find their groove and succeed. Listen and Learn: What angels need to know about ICOs Why Europe is seeing a startup revolution How to source startup deals on Twitter Why investors don’t need to live in startup hubs to succeed The future of cryptocurrencies and fintech on Why IoT is the #1 Startup Sector and the Midwest is the Best Place for Companies Nick Moran Nick Moran is a former M&A guy turned angel investor and venture capitalist. He started the 1st VC podcast (the Full Ratchet) over three years ago and used this platform to build one of the top syndicates on Angellist. Since starting investing, none of his companies have failed to date and he since raised a fund to focus on early stage IoT in the Midwest. Listen and Learn: Why the Midwest is the place to be for startups and investors The future of IoT and why it is the #1 industry to watch How to build consistent, vetted deal flow Why podcasting has transformed venture capital The differences and dynamics between syndicates and VC funds Why startups are leaving SF to go to Midwest China is Challenging the Status Quo and Taking Over the Startup Scene This week with who is a Partner at , the #1 global investor in early stage hardware startups with over 200 investments. Prior to HAX he worked mostly across Asia for the past 18 years (China, Japan, Korea) in various high-tech industries: aerospace, telecom, Internet, mobile, gaming. and ran his own cross-border research & advisory firm. Benjamin Joffe HAX Listen and Learn: How the Chinese and Asian startup ecosystems differ from the West What the future of consumer tech and hardware looks like worldwide Why China is the best place to build a hardware company How to evaluate hardware startups An unconventional approach to venture portfolio investing Why different ecosystems and markets evolve differently When China will pass the USA in terms of innovation About China’s innovative “anti-advertising” business models Why The Next Mega Tech Company is Probably Coming out of China with Sajid Rahman An investor in the likes of and , Sajid Rahman is an executive level leader with industry leading experience in emerging markets, helping companies expand internationally and the Asian startup landscape. He started the first tech accelerator program in Bangladesh, runs an AngelList syndicate, sits on the board and advises numerous startups and is an active angel investor himself. fitmob Shyp Listen and Learn: How angel investors should think about Asia Why emerging markets drive massive returns The new Silicon Valley’s worldwide What AngelList is doing to change early stage Why the next BIG tech company is coming from China How Detroit is Defining Future of Mobility & Transportation with of Ted Serbinski Techstars Ted Serbinski is an entrepreneur and early stage investor operating at the intersection of Detroit’s automotive dominance and its entrepreneurial resurgence. He is the Managing Director of Techstars Mobility, the first US startup accelerator program focused on next-generation mobility technologies. Previously, he was a Partner and founding team member of Detroit Venture Partners, a $55M seed-stage fund that has invested in 25 companies. Before moving to Detroit from San Francisco, Ted was a co-founder and CTO of ParentsClick. With the 4th largest social network and the largest blog network for moms, Lifetime Television acquired ParentsClick in 2008. Listen and Learn: How autonomy affects the future of mobility What is wrong with tranditional angel investors Why Detroit is actually a growing tech hub What blockchain means more the transportation industry What traveling can teach VCs about investing Why index investing is the best bet for startups Arlan Hamilton on Raising 1st VC Fund While Homeless to Attack Tech’s White Guy Diversity Problem Arlan Hamilton isn’t your typical VC. She’s a smart, scrappy founder and fighter and believes in inclusion and diversity to drive outsized rewards. Her firm Backstage Capital invests in underrepresented founders like herself: people of color, LGBT and anyone SF wouldn’t normally give a fair shake. She’s fiery, she attacks conventions and she’s changing the world of tech while focused on enormous ROIs. Enjoy. Listen and Learn: How to raise your 1st VC fund, while being homeless The power of connecting founders with investors What will happen to Silicon Valley’s big boy club Why under-represented founders deliver outsized returns The massive disparity in venture capital Why Silicon Valley doesn’t have a pipeline problem The Future of Cryptocurrencies and Blockchain Roundtable Our expert panelists include: , Andy Bromberg, Lou Kerner and Gil Penchina Joey Krug Gil Penchina’s one of the top super angels of all time, with investments in , Brave, , Paypal, Filecoin, Civic, Linkedin, Cruise Automation, Dollar Shave Club, , Discord, Fastly and a name as good as gold. Prior to that he worked at Ebay through the IPO process and now he runs 20+ syndicates on Angellist with millions in backing. And today he’s venturing to the other side of the table with Pryze, a decentralized sweepstakes system working on an ICO pre-sale. For more on Gil, check out his interview on The Syndicate podcast where we discuss How Gil Tried to Lose Money and Hit 5 Unicorns and the Future of Cryptocurrencies Ripple Polychain Wealthfront Joey Krug got involved in Bitcoin mining in 2011 before building Bitcoin point of sale system in 2013. In 2014, he dropped out of Pomona College to cofound one of the first projects on ethereum called , and in 2015 they did the first crowdsale on . Then this year he joined as Co-Chief Investment Officer managing their digital asset funds… oh, and he also run one of the top 10 (by backing) AngelList syndicates. To learn more about Joey, listen to our interview (the 1st of the podcast), on Cryptocurrencies, ICOs and the Future of Public Markets. Augur ethereum Pantera Capital Andy Bromberg is the CEO of , an innovative ICO launch platform and compliance company responsible for the Filecoin’s $205M ICO success. Spun out of Angellist, Coinlist is already a leader in the token space and has built the trust and success to fuel legitimate, world changing ICOs. Prior to Coinlist, Andy co-founded , a startup which raised ~ $5M to connect experts for thought provoking conversations on politics on more. CoinList Sidewire Lou Kerner is the founder and managing partner of Flight.vc’s Israeli Founder fund and the Social Internet fund. Before that, Lou pioneered social media with Bolt, the largest social media company of its time before being conquered by Myspace. Since then Lou has invested in the likes of Palantir, Facebook, Meetup, Klout, Plated and more. And if you missed Lou’s conversation on the podcast, it is a must. We will cover a wide range of topics from ICOs, the future of cryptocurrencies, the implications and disruptions of blockchain and much much more. Plus there will be a live Q&A session at the end with all our esteemed guests. Closing thoughts Every city wants to be the “next Silicon Valley.” Billions are poured in venture every year. Is it working? Is the center of innovation shifting? While arguably new hubs like NYC, Boston, London, Berlin and Singapore are cropping up, Silicon Valley seems to be where the money is at. If you had a choice, where would you live? Where would you invest? Where is the world going? Thoughts? Share your opinions, speculation and industry insight in the comments below. Learned something? Click the 👏 to say “thanks!” and help others find this article. Hold down the clap button if you liked the content! It helps me gain exposure . Clap 50 times!

Top Ten Interviews on Investing Outside Silicon Valley

What are DePINs? Decentralized Physical Infrastructure Networks (DePINs) are real-world infrastructures on-chain. In more depth, DePINs offer a community-driven, cost-effective means of scaling projects without relying on traditional, centralized models. They are platforms where organizations and individuals can benefit from higher levels of control over their data and products through decentralized infrastructure. As for the term "DePIN,” this gained prominence in 2023 and continues to grow in mention into 2024. Initially, Web3 was used to reference projects focused on networks (replicating Web2 internet networks, but decentralized) but has since expanded to include all crypto or blockchain work, resulting in the need for this specific terminology. DePIN 101 On a fundamental level, DePINs function as bridges between physical facilities and the blockchain ecosystem. They operate through three main components. These are physical infrastructure controlled by a provider, a middleware connection to the blockchain, and a public ledger. These connections are managed by record-keeping and offering remittances to both the provider and the user.The physical infrastructure could be a smart agriculture system where farmers use IoT (Internet of Things) devices such as soil moisture sensors, weather stations, and crop health monitors to gather data about their fields. The middleware would then relay this information to the blockchain. Then, based on the data provided by the middleware, the blockchain would distribute rewards to the provider and users in the form of tokens. Additionally, for DePINs to operate effectively, four distinct parties must be involved in the network. This includes: Hardware (PRNs & DRNs): a physical component connecting networks to the real world
Hardware operators (Providers): Contributors buying or lending their hardware to the given network
Token: A financial incentive paid out to hardware operators based on data provided by the middleware
Users: DePINs need users who are willing to use and pay for the service The Current DePIN Landscape DePIN projects operate in six core business niches: compute marketplaces, wireless coverage, wholesale data, services marketplaces, energy services, and vertical ad networks. At present, there are several existing projects emerging in all six of these business models, including Filecoin, Helium, Hivemapper, Braintrust, Entheos and Sweatcoin. Out of these six sectors, compute marketplaces are where the most potential is seen, making up the majority of the market capitalization of DePIN crypto projects. Unpacking a DePIN example As we can see from the current DePIN landscape, there are many sectors in which DePINs currently operate. One real-world example that makes sense, at its core, is a decentralized energy grid. The basis for this is that traditional energy grids are often centralized, owned, and operated by utility companies, which can lead to inefficiencies and a lack of flexibility in distribution. Contrastingly, a decentralized energy grid built on blockchain technology could enable peer-to-peer energy trading between consumers and producers. Imagine a scenario where homeowners could sell excess energy to neighbors from their solar panels. This would facilitate more efficient use of renewable energy resources and incentivize individuals and communities to invest in sustainable energy production. By leveraging blockchain and smart contracts, this DePIN could ensure transparent and secure transactions while empowering users to have more control over their energy usage and production. The Flywheel Effect The concept of the flywheel effect is crucial to understanding DePINs potential for network growth and scalability. Unlike traditional models that require massive upfront capital investments, DePINs rely on grassroots efforts and community-driven initiatives to scale. Tokens play their part in these ecosystems by serving as an incentive for the community to contribute to the maintenance of the network. The Flywheel (above) visualizes the different steps involved in this maintenance and also helps to explain how DePIN projects can utilize the flywheel effect to catalyze their network growth.There are several different ways projects can increase the value of their token. For example, a stake-weighted random selection algorithm can be utilized to increase the value of a token, as providers must stake the project's token to get user deal flow. This adds an added incentive for contributors to continue building out the network. Therefore, the native token will increase in price as the network grows, resulting in more rewards for providers and a higher attraction for investors to invest. Fundamentally, this flywheel creates infrastructure networks that get stronger as they get bigger. As explained above, the flywheel effect of DePINs offers an alternative approach to traditional business models that fundamentally makes sense. However, we must consider the obstacles DePINs face in their journey to realizing their potential. The Future of DePINs By leveraging blockchain technology and tokenomics (The Flywheel Effect), DePINs are expected to disrupt existing IoT business models and enable on-chain communities to build innovative decentralized networks and applications. However, some limitations are currently holding DePINs back. There are several architectural considerations for scaling DePIN applications on-chain that need to be addressed if DePINs are going to be the bridge between decentralized technology and the real world. The most significant challenges to overcome are scalability, interoperability, security, and usability issues. The on-chain infrastructure needs to be able to handle a high volume of transactions and data throughput effectively to support the requirements of decentralized physical networks. To then communicate and exchange this data effectively, seamless interoperability with other blockchain networks and traditional systems is required. Robust security mechanisms, including encryption and authentication, are vital to safeguarding sensitive information and ensuring the integrity of DePIN networks. On top of this, DePINs must have systems in place, ensuring the security of external data feeds (oracles) used to verify real-world information and the prevention of Sybil attacks, where malicious actors create fake identities to gain undue influence within the network. A final consideration is that specialized technical knowledge is currently required to participate in a DePIN ecosystem. A more usable interface and intuitive design will be required for further adoption. The future of DePINs relies heavily on collaboration among stakeholders and ongoing technological innovation to address these challenges and unlock their full potential. What are DePINs? What are DePINs? Decentralized Physical Infrastructure Networks (DePINs) are real-world infrastructures on-chain. In more depth, DePINs offer a community-driven, cost-effective means of scaling projects without relying on traditional, centralized models. They are platforms where organizations and individuals can benefit from higher levels of control over their data and products through decentralized infrastructure. As for the term "DePIN,” this gained prominence in 2023 and continues to grow in mention into 2024. Initially, Web3 was used to reference projects focused on networks (replicating Web2 internet networks, but decentralized) but has since expanded to include all crypto or blockchain work, resulting in the need for this specific terminology. DePIN 101 DePIN 101 On a fundamental level, DePINs function as bridges between physical facilities and the blockchain ecosystem. They operate through three main components. These are physical infrastructure controlled by a provider, a middleware connection to the blockchain, and a public ledger. These connections are managed by record-keeping and offering remittances to both the provider and the user. The physical infrastructure could be a smart agriculture system where farmers use IoT (Internet of Things) devices such as soil moisture sensors, weather stations, and crop health monitors to gather data about their fields. The middleware would then relay this information to the blockchain. Then, based on the data provided by the middleware, the blockchain would distribute rewards to the provider and users in the form of tokens. Additionally, for DePINs to operate effectively, four distinct parties must be involved in the network. This includes: Hardware (PRNs & DRNs): a physical component connecting networks to the real world Hardware operators (Providers): Contributors buying or lending their hardware to the given network Token: A financial incentive paid out to hardware operators based on data provided by the middleware Users: DePINs need users who are willing to use and pay for the service Hardware (PRNs & DRNs): a physical component connecting networks to the real world Hardware (PRNs & DRNs): Hardware operators (Providers): Contributors buying or lending their hardware to the given network Hardware operators (Providers): Token: A financial incentive paid out to hardware operators based on data provided by the middleware Token: Users: DePINs need users who are willing to use and pay for the service Users: The Current DePIN Landscape The Current DePIN Landscape DePIN projects operate in six core business niches: compute marketplaces, wireless coverage, wholesale data, services marketplaces, energy services, and vertical ad networks. At present, there are several existing projects emerging in all six of these business models, including Filecoin , Helium , Hivemapper , Braintrust , Entheos and Sweatcoin . Filecoin Filecoin Helium Helium Hivemapper Hivemapper Braintrust Braintrust Entheos Entheos Sweatcoin Sweatcoin Out of these six sectors, compute marketplaces are where the most potential is seen, making up the majority of the market capitalization of DePIN crypto projects. Unpacking a DePIN example Unpacking a DePIN example As we can see from the current DePIN landscape, there are many sectors in which DePINs currently operate. One real-world example that makes sense, at its core, is a decentralized energy grid. The basis for this is that traditional energy grids are often centralized, owned, and operated by utility companies, which can lead to inefficiencies and a lack of flexibility in distribution. Contrastingly, a decentralized energy grid built on blockchain technology could enable peer-to-peer energy trading between consumers and producers. Imagine a scenario where homeowners could sell excess energy to neighbors from their solar panels. This would facilitate more efficient use of renewable energy resources and incentivize individuals and communities to invest in sustainable energy production. By leveraging blockchain and smart contracts, this DePIN could ensure transparent and secure transactions while empowering users to have more control over their energy usage and production. The Flywheel Effect The Flywheel Effect The concept of the flywheel effect is crucial to understanding DePINs potential for network growth and scalability. Unlike traditional models that require massive upfront capital investments, DePINs rely on grassroots efforts and community-driven initiatives to scale. Tokens play their part in these ecosystems by serving as an incentive for the community to contribute to the maintenance of the network. The Flywheel (above) visualizes the different steps involved in this maintenance and also helps to explain how DePIN projects can utilize the flywheel effect to catalyze their network growth. There are several different ways projects can increase the value of their token. For example, a stake-weighted random selection algorithm can be utilized to increase the value of a token, as providers must stake the project's token to get user deal flow. This adds an added incentive for contributors to continue building out the network. Therefore, the native token will increase in price as the network grows, resulting in more rewards for providers and a higher attraction for investors to invest. Fundamentally, this flywheel creates infrastructure networks that get stronger as they get bigger. As explained above, the flywheel effect of DePINs offers an alternative approach to traditional business models that fundamentally makes sense. However, we must consider the obstacles DePINs face in their journey to realizing their potential. The Future of DePINs The Future of DePINs By leveraging blockchain technology and tokenomics (The Flywheel Effect), DePINs are expected to disrupt existing IoT business models and enable on-chain communities to build innovative decentralized networks and applications. However, some limitations are currently holding DePINs back. There are several architectural considerations for scaling DePIN applications on-chain that need to be addressed if DePINs are going to be the bridge between decentralized technology and the real world. The most significant challenges to overcome are scalability, interoperability, security, and usability issues. The on-chain infrastructure needs to be able to handle a high volume of transactions and data throughput effectively to support the requirements of decentralized physical networks. To then communicate and exchange this data effectively, seamless interoperability with other blockchain networks and traditional systems is required. Robust security mechanisms, including encryption and authentication, are vital to safeguarding sensitive information and ensuring the integrity of DePIN networks. On top of this, DePINs must have systems in place, ensuring the security of external data feeds (oracles) used to verify real-world information and the prevention of Sybil attacks, where malicious actors create fake identities to gain undue influence within the network. A final consideration is that specialized technical knowledge is currently required to participate in a DePIN ecosystem. A more usable interface and intuitive design will be required for further adoption. The future of DePINs relies heavily on collaboration among stakeholders and ongoing technological innovation to address these challenges and unlock their full potential.

ESTHENOS TECHNOLOGIES

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-- employees

Since n.d.

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ESTHENOS TECHNOLOGIES

esthenos.com

-- employees

Since n.d.

COMPANY RANKING

ESTHENOS TECHNOLOGIES

EVERGREEN INDEX #4537

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