Quick look at the overlooked project on Breakpoint Dabba: What is the experience of doing DePIN in India?

CN
5 months ago

Dabba provides broadband internet connections in India, where there is a significant demand for infrastructure in this area, as it lags far behind the United States and China.

Author: The Daily Bolt by Revelo Intel

Translator: Deep Tide TechFlow

Last week, two major conferences were held in Singapore: Token 2049 and Solana Breakpoint. Participants shared their different "atmospheres" and experiences at these two conferences, and the consensus seemed to be that Solana Breakpoint was more informative, especially in inspiring an optimistic mood in the Solana ecosystem. Breakpoint released several important announcements, including messages from the Solana Foundation and key teams in the ecosystem such as Sanctum and Jupiter.

We also saw a group of emerging teams taking the stage to introduce the projects they are building. This is exactly what we want to focus on today—everyone knows the big companies on SOL, but there are also some interesting teams that have not received enough attention, and Breakpoint may be the first opportunity for many people to learn about these teams. Specifically, we will focus on Dabba, a project located at the intersection of multiple high-growth industries, providing India with a decentralized physical infrastructure network for high-speed internet (DePIN).

Background of Dabba

Dabba is the foundational layer of decentralized physical infrastructure (DePIN) for the internet. Dabba is building a "Layer 0" (not LayerZero) DePIN infrastructure. Specifically, Dabba provides broadband internet connections in India, where there is a significant demand for infrastructure in this area, as it lags far behind the United States and China. Users in need of broadband internet connections can access the Dabba platform, which brings together over 150,000 small cable installation companies in India.

Essentially, Dabba is a platform that connects potential service providers and users who might otherwise have difficulty finding each other. The key point is that Dabba's potential users are already looking for a way to purchase broadband internet connections, whether or not they use decentralized physical infrastructure (DePIN). However, providing these users with the high-speed internet they need is not easy, as in most developed countries, there is a lack of mature internet service providers. To address this, Dabba leverages decentralized local cable operators and provides them with the hardware and expertise needed to install high-speed internet.

Dabba's argument is that decentralized physical infrastructure (DePIN) is the key to achieving mass adoption. The team hopes to onboard the next billion users onto the chain, and the population in emerging markets is the most likely group to use cryptocurrencies. We know that the penetration rate of cryptocurrencies in emerging markets is the highest in the world, and these countries also have much larger populations than developed countries. Moreover, emerging markets may be more interested in the incentives that the DePIN protocol may provide, as these incentives may be more significant relative to their lower incomes.

The issue here is that many people in emerging markets lack the ability to participate in these decentralized physical infrastructure (DePIN) networks. Many of the infrastructures that DePIN relies on have not been established in these markets, which are still developing. When looking at the coverage map of protocols like Hivemapper, we can see that almost all coverage is in developed countries, with most of the world having no coverage.

Hivemapper network coverage

Dabba emphasizes the importance of demand. First, the network will only truly grow when there are paying customers. This is due to the specific position and industry in which Dabba operates. In contrast, other decentralized physical infrastructure (DePIN) protocols typically operate in more niche or less popular industries, resulting in less potential demand.

In the token economics, burning an amount of local DBT tokens equivalent to the price paid by the consumer for consuming 1 GB of data. These local DBT tokens are only issued to hotspot owners, who are the ones purchasing the actual hardware to provide internet connections to users, while local cable operators install these devices in India. Specifically, unlike Helium or other decentralized physical infrastructure (DePIN) projects, the goal is not to actually receive these hotspots in real life. Instead, it is more like an investment, as the purpose of purchasing hotspots is to have them deployed in India by another party without the need for personal operation.

Dabba can be said to achieve "two birds with one stone," as decentralized physical infrastructure (DePIN) is a more feasible alternative in markets like India, where there is no clear winner in the broadband internet market. Dabba initially operated as a well-known internet service provider (ISP). The protocol has unique advantages in regulation, helping to draft many telecommunications policies related to WiFi in India.

This is clearly a significant advantage. More specifically, Dabba's founder Karam Lakshman has witnessed the persistence of primitive infrastructure in an economy. He believes that the same applies to the decentralized physical infrastructure (DePIN) solution of Layer 0, comparing this concept to how highways and railway networks promote interregional transportation and trade. Dabba is building in the Solana DePIN field and is headquartered in India, placing it in the two fastest-growing industries globally, making its goals both interesting and ambitious.

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