Market Situation
With the widespread adoption of 5G and 6G, and the rise of satellite communications, the underlying communication infrastructure is becoming increasingly advanced. Not only are IoT devices and industrial equipment generating vast amounts of data, but smartphones, social networks, and various applications are also collecting and analyzing enormous volumes of personal data in real time. This integration of diverse data—such as location information, life logs, purchasing history, learning records, as well as gaming and social media activities—is paving the way for entirely new services that transcend traditional boundaries.
Forecast of Global Mobile Data Traffic (by Device)
Source: Ministry of Internal Affairs and Communications (based on Ericsson “Ericsson Mobility Visualizer” 2)
According to a study by IoT Analytics, the global IoT market was estimated at approximately USD 384.5 billion (around 38 trillion yen) in 2021, with expectations to exceed USD 1 trillion (roughly 100 trillion yen) by 2030. Although these figures primarily refer to sensor networks for devices, when combined with personal activity and preference data collected from smartphones, wearables, and various online platforms, an even larger market opportunity emerges. The advancements in 5G/6G and satellite communications will break down geographical constraints, enabling comprehensive data collection and utilization not only in urban areas but also in rural regions, emerging economies, and remote locations.
Existing Solutions’ Limitations
In recent years, personal activity data has been rapidly accumulated and analyzed by platforms such as social networks, search engines, and e-commerce sites. For instance, giants like Google, Meta (formerly Facebook), and Amazon dominate the global digital advertising market—which exceeds USD 600 billion as of 2022—by monopolizing massive amounts of user data and leveraging advanced analytics to generate significant profits through advertising and new service development. However, users who provide this data often receive little in return or control over its use.
Additionally, on the physical infrastructure side, critical sectors such as communications, logistics, and energy are frequently dominated by a few large companies, which limits consumer choice. For example, in the telecommunications industry, a few major carriers own the majority of base stations and network infrastructure. In rural areas or emerging countries, where alternatives are scarce, users often have no choice but to continue using high-cost services despite dissatisfaction with quality.
In such structures, the companies providing the infrastructure tend to unilaterally manage and exploit the data, thereby monopolizing the revenue generated from it. The question of how users can benefit from the data they generate is frequently sidelined in existing business models.
Furthermore, as personal data usage expands, regulations such as the GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) have become stricter worldwide. Cases where companies have been fined tens of millions of dollars for violations highlight the challenges even major platforms face in negotiating regulatory requirements. Instead of increasing benefits for individuals, these stricter regulations may further entrench the monopolistic positions of platform providers and infrastructure companies. Consequently, there is a growing demand for systems where users can manage their own data and determine its usage and compensation.
The Necessity of DePIN
To address these issues, we are building a data storage infrastructure that can be managed in a decentralized manner by a broader range of participants. This approach will avoid the pitfalls of centralization and ensure that data sovereignty firmly returns to individuals. It is not just about storing data across multiple locations; it is about enabling data owners to control access rights and usage while receiving fair compensation through an incentivized model. For this, a decentralized physical infrastructure network—DePIN—is indispensable, allowing participation from not only a few large companies but also local communities and individuals.
DePIN leverages blockchain technology at its core, incorporating mechanisms where node operators are rewarded with tokens for providing storage resources and communication infrastructure. This model enables small businesses and individuals to participate in network operation, thereby counteracting the monopolistic tendencies of major companies. Furthermore, the inherent immutability of blockchain ensures that data storage and access logs are transparent and tamper-proof, which enhances data integrity and trust. By utilizing smart contracts, the agreed-upon terms between data providers and users are automatically enforced, ensuring fair revenue distribution and robust privacy protection.
In this way, by combining decentralized physical infrastructure with blockchain technology, the DEAP Network envisions a future where the inherent value of personal data is properly recognized and returned to its rightful owner. DePIN is essential for overcoming the challenges of centralized systems that have long struggled with data monopolization and privacy risks. It creates an ecosystem where everyone can manage their data on their own terms and share in the economic benefits.
Are Service Providers Really Going to Share Their Data?
At this point, you might wonder whether the service providers—the very entities that generate data—would have any incentive to share their data. Some may believe that these providers would prefer to keep their data closely guarded. However, we have designed a system that offers benefits to both data providers and users.
Currently, many service providers store user activity data on their own servers or in the cloud, bearing high costs for storage, maintenance, security, and regulatory compliance as their user bases and data diversity expand. DEAP Network, on the other hand, leverages a decentralized physical infrastructure that distributes large-scale storage across multiple nodes. This approach significantly reduces storage costs compared to traditional centralized cloud solutions. Moreover, built-in redundancy and automatic backup functions minimize the additional maintenance costs for service providers.
Centralized data management often leads to single points of failure, increasing the risk of massive data breaches and service outages. Additionally, as personal data regulations such as the GDPR and CCPA become stricter, ensuring secure data storage and processing becomes an even greater burden on companies. Our decentralized storage solution mitigates these risks by using encrypted, distributed nodes combined with blockchain-based tamper resistance. Furthermore, by setting access rights, usage conditions, and transaction histories via smart contracts, DEAP Network automates compliance and reduces regulatory workload.
Increasingly, users are concerned about how companies handle their data. Demonstrating a commitment to privacy protection and data sovereignty enhances a company’s brand value. When service providers adopt DEAP Network, they can showcase that they empower users to manage their own data securely and receive fair rewards. This not only builds trust among existing users but also attracts new users who are highly conscious of privacy.
Moreover, DEAP Network’s incentive design ensures that when data is used, the revenue is shared with the service provider who collected it. Historically, data collection has been a costly endeavor that did not necessarily yield proportional benefits for the providers. By distributing rewards every time the data is used—whether in analytics, AI training, or through collaborations with other companies—our system ensures that providers can derive new revenue streams from the data they already possess.
Additionally, decentralized infrastructure facilitates smoother data sharing among different companies and organizations. When service providers store data on DEAP Network, other related companies or research institutions can easily access the required data, accelerating joint projects and new service development. With transparent revenue distribution executed by smart contracts, multiple stakeholders can benefit from data sharing. As a result, providers gain access to new markets and user bases that would have been unattainable under traditional centralized systems.