Interview with Tom Trowbridge, Co-Founder of Fluence Labs, Highlights Revenue as the Key to Success for DePIN Projects — Devconnect Bangkok Edition

While decentralization is the crux of the Web3 industry, much of its infrastructure still relies on centralized cloud services, exposing the system to inherent centralized risks. Trowbridge argues that decentralized computing is a critical missing piece for Web3 to reach its full potential. The vision of Web3 remains incomplete if it continues to depend on centralized cloud servers like Microsoft, AWS, Google Cloud, etc., undermining the principles of privacy, security, trust, and autonomy that decentralization promises.

We recently interviewed Tom Trowbridge, Co-Founder at Fluence Labs, in person during Devconnect in Bangkok to understand what they’re building in the decentralized infrastructure space. In this interview, we dive deeper into how decentralized computing is a fundamental component for the Web3 ecosystem to flourish.

Generating Real Revenue is Important for DePIN Companies

While crypto had traditionally been used for consensus algorithms or DeFi protocols, integrating it with physical infrastructure was an innovative concept that demanded its own terminology. DePIN’s emergence emerged by the maturity of software and crypto-economics, honed and proven across various protocols.

With respect to how users can get involved in the DePIN ecosystem, there are different angles to consider depending on whether you’re a provider or an end customer. For example, as a provider, you can offer services like computing power, but you can also be a consumer, buying data and using the resources. This dual role fascinates many users, offering flexibility and a unique way to engage with the ecosystem. Trowbridge believes the most exciting aspect for users is generating revenue through decentralized platforms, with clear links between their contributions and economic rewards. It creates a sustainable model driven by the network’s economics and does not rely on subsidies or temporary pricing. For example, it’s a real deal when the ability to offer cloud infrastructure at a price almost 80% cheaper than centralized providers is offered. It is about creating an alternative to the centralized cloud that is economically viable and censorship-resistant.

Fluence’s core mission is to provide a decentralized cloud infrastructure 80% cheaper than traditional centralized cloud services while maintaining a sustainable economic model. Unlike other providers, Fluence’s pricing structure is not temporary or subsidized—it is driven by the economics of the network. This leaves room for more affordable and reliable infrastructure for organizations without the risk of price manipulation or vendor lock-in. Fluence aims at the empowerment of enterprises as well as individual users by allowing them to build, scale, and monetize decentralized applications with increased security and efficiency. Therefore, Fluence stands for three key aspects: affordability, decentralization, and resistance to censorship.

Challenges of Centralized v/s Decentralized Infrastructure 

While discussing the challenges associated with using DePIN infrastructure, Trowbridge shared a more evolved approach. He explained that in disputes or issues related to DePIN infrastructure, users interact directly with the compute providers via smart contracts and network protocols instead of relying on a centralized support team. Such processes ensure that users are billed only for resources used, and any issues over performance or allocation can be resolved by working directly with the provider. This is precisely where there is a need for decentralized infrastructure to evolve and provide a user experience that competes with AWS, Google, and Microsoft.

While the experience with centralized cloud platforms is generally seamless, decentralized computing platforms like Fluence are still working on user interfaces and tooling to ensure ease of use. The user experience may be more complex initially, but it will improve as the developer community grows. Fluence seeks to make the shift from centralized to decentralized computing as smooth as possible as more enterprises and developers embrace decentralized computing. Over time, as the decentralized model evolves, it will offer businesses and enterprises a compelling alternative that can match the capabilities of traditional cloud providers.

Fluence’s Upcoming Developments in the DePIN Landscape

As for the broader trends in Web3 and the growing interest in technologies like DePIN, there is always the risk that specific trends may lose momentum, as we’ve seen with the rise and fall of NFTs, gaming, and other sectors. However, Fluence is focused on creating a sustainable infrastructure that can thrive regardless of market trends. As a strong use case for Web3, decentralized computing has an inherent long-term value beyond the hype cycles. Even as specific sectors may wax and wane in popularity, the need for decentralized, censorship-resistant infrastructure will only grow, driven by the increasing demand for privacy, security, and autonomy. 

Looking ahead, Trowbridge expressed his excitement that the Fluence infrastructure is gearing up for several key milestones, including the launch of Virtual Machines (VMs), scheduled for December. This significant development will enhance the platform’s capabilities and attract a broader user base. The company also plans to announce its first customer use cases, demonstrating the real-world applications of its decentralized compute solutions. The third feature that adds excitement will be support for GPU-powered workloads, opening up new possibilities for AI and machine learning applications. 

Beyond DePIN, Trowbridge is also tapping broader market trends, such as the potential for Bitcoin reserves to gain traction among national governments. He said that if countries like the U.S. start holding Bitcoin as part of their strategic reserves, it could create a domino effect, encouraging other nations and large pension funds to adopt Bitcoin as a legitimate store of value.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.