Karam Lakshman, CEO of Wifi Dabba, asserts that a country like India, which is the world’s fifth-largest economy, needs enhanced connectivity and innovation. He suggests that Decentralized Physical Infrastructure Networks could be the solution for the country, which currently trails other major economies in fixed broadband connectivity.
Developing Countries Need Decentralized Physical Infrastructure Networks - Karam Lakshman
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Using Blockchain to Establish Transparent Networks
Lakshman supports his claim by pointing to Decentralized Physical Infrastructure Networks’ use of blockchain technology or elements of Web3. In his written responses, Lakshman told Bitcoin.com News that companies such as Wifi Dabba can build transparent networks with multiple users and operators by leveraging the blockchain.
In addition to helping connect millions, Decentralized Physical Infrastructure Networks can also speed up and democratize infrastructure, especially in the developing world where this infrastructure is still in its infancy, argued the Wifi Dabba CEO. Furthermore, these networks are more likely to offer more affordable services than traditional alternatives.
Meanwhile, Lakshman explained why he views India as the ideal platform to test Decentralized Physical Infrastructure Networks and why their success there would be a boon for other developing countries facing similar connectivity issues. Below are the CEO’s responses to all the questions sent.
Bitcoin.com News (BCN): Could you begin by explaining to our readers what Decentralized Physical Infrastructure Networks are, and how they assist in connecting those who are currently unconnected? Who are the various participants in these networks, and what incentives do they have to purchase hardware and dedicate their resources to a decentralized network?
Karam Lakshman (KL): The Decentralized Physical Infrastructure Networks (DePIN) model allows for the tokenization of real-world assets, the kind of assets needed to build out infrastructure where it’s needed the most. This includes communications infrastructure, weather tracking, compute networks and more. Traditionally the creation, maintenance and deployment of these networks require massive amounts of capital and leads to market power only in the hands of a few.
The decentralized nature of DePINs enables the mass capital required and ensures that anyone who participates in the creation and maintenance of these networks gets rewarded for their contributions fairly. A person’s participation varies from deploying hardware, validating parts of the network, providing support services and so on.
BCN: The Indian telecommunications market has grown fiercely competitive, dominated by the duopoly of Jio and Airtel. It is rapidly transitioning to a 5G future. Given this scenario, why do you believe that India is well-suited for a decentralized internet using Decentralized Physical Infrastructure Networks technology?
KL: India, now the 5th largest economy with the highest number of internet users, still lags behind in connectivity, nearly half of the 1.4 billion population still doesn’t have access to the internet. Though 4g/5g connectivity is important and is scaling, fixed broadband is crucial for filling in the coverage gaps of 4g/5g, especially in rural and suburban areas that major telcos tend to avoid.
We are severely behind in fixed broadband connectivity. For comparison, China has 636 million subscriptions and the USA has 127 million, while India has just over 30 million. This has a direct correlation to a nation’s digital progress and economic growth, and India needs better connectivity and innovation. We believe that DePINs are that innovation which will bring the next billion internet users online.
BCN: Dabba has been in the market for several years and has collaborated with entities such as Google and the Indian government on their wifi initiatives. Where do you envision opportunities for Dabba in India and elsewhere?
KL: As the Dabba network grows in India we see vertical integration opportunities by expanding our service offerings beyond connectivity to include value-added services such as cloud and financial services. By diversifying revenue streams and enhancing the overall user experience, Dabba can create additional value for its customers and operators.
The problems that India faces in connectivity aren’t unique and can be seen across the developing world. India serves as a crucial test bed for building this decentralized wireless network which can then be adapted for the rest of the world.
BCN: What is the necessity of a Web3 component in Decentralized Physical Infrastructure Networks, particularly for providing internet connectivity to the unconnected? Why do you believe that Decentralized Physical Infrastructure Network projects cannot achieve the same goal without the use of blockchain technology?
KL: DePIN is a decentralized model, using web3/ blockchain technology is the best way to build out a transparent network that has multiple users and operators. The common pooling of resources to build out the network leads to infrastructure being easily deployed where it’s needed the most as well as lowered costs of service to end users. Combined with an incentivisation model for operators and contributors leads to a flywheel of connectivity across the country which couldn’t be done through traditional models.
BCN: Besides the decentralized internet, what are some other areas where Decentralized Physical Infrastructure Networks could solve real problems and improve people’s lives?
KL: The DePIN model can be used as a hyper-growth platform for any infrastructure platform. I think a better question here is where will DePINs thrive.
DePINs accelerate and democratize infrastructure, these networks offer services much cheaper than traditional alternatives and are incentivised to expand and stay on the cutting edge. Where better to find market fit for this model than the developing world? Unlike the developed world where most major infra is developed and markets are saturated, the developing world offers a greenfield market where infrastructure is in its infancy whether communications, mobility or compute, these are services that these countries need in order to bolster growth.
The next major DePIN will come out of the developing world, because that is where real problems need to be solved to improve people’s lives.
What are your thoughts on this interview? Share your opinions in the comments section below.
