From Hype to Reality:How DePIN is Revolutionizing Infrastructure
DePIN (Decentralised Physical Infrastructure Networks) is a rapidly growing sector that combines physical resources such as industrial equipment, vehicles and energy systems with blockchain and crypto-economy technologies.
Using DePINs, people can share and manage resources, enabling the creation of decentralized networks that can provide a variety of services such as wireless networks, storage, computing and sensor networks. By decentralizing DePIN, intermediaries can be eliminated, which increases efficiency and reduces the cost of services. DePIN also uses cryptoeconomics to incentivise and support the development of networks. DePIN is a promising sector that is expected to continue to grow and penetrate new industries.
Year-to-date figures for the entire DePIN sector:
How DePIN works
DePIN projects typically operate by creating proprietary tokens that incentivise node operators to provide access to unused storage space, bandwidth, sensors and other physical devices or resources.
On the other hand, users pay with these tokens to access services provided through the decentralized network. The goal is to balance supply and demand and achieve economies of scale that will eventually make the decentralized network self-sustaining.
DePIN subcategories:
Physical Resource Networks (PRNs):
PRNs are networks that incentivise people to deploy and distribute location-dependent equipment in the real world. This equipment is used to provide tangible and non-transferable goods and services such as wireless networks, storage resources, computing resources and sensors.
The Helium Network is a prime example of a PRN where people can earn tokens by providing 5G coverage through their home or office installations, thereby contributing to the growth and utility of the network.
Digital Resource Networks (DRNs):
DRNs encompass a wide range of services, including bandwidth resources (e.g., CDNs and VPNs), general and special purpose computing resources, database and file storage resources, and artificial intelligence capabilities for machine learning and data models. These networks are designed to provide digital infrastructure and resources that can be accessed and utilized by individuals and businesses around the world.
Filecoin is an example of a DRN where users can contribute to the network by providing storage space from their unused hard drives, thus creating a decentralized storage market.
Both types of DePINs are crucial for the development of decentralized infrastructure, offering alternative solutions to traditional centralized systems. They utilize blockchain technology and token economics to incentivise participation and enable network growth and sustainability.
Using DePIN
Decentralised Physical Infrastructure Networks (DePINs) have a wide range of uses and applications across a variety of industries. Here are some of the most notable:
Wireless Networks: Projects such as the Helium Network are driving the deployment of wireless coverage by incentivising individuals to provide 5G coverage through their homes or offices. This helps improve wireless connectivity in both urban and rural areas, supporting the growth of IoT devices and smart cities.
Storage Resources: Decentralized storage networks such as Filecoin allow users to contribute to the network by providing storage space from their unused hard drives. This creates a decentralized storage market, making it more cost-effective and secure than traditional centralized storage.
AI Capabilities: DePINs can incorporate a wide range of services, including artificial intelligence capabilities for machine learning and data analysis. These applications are critical for industries that require processing and analyzing large amounts of data, such as healthcare, finance and transport.
Smart Cities and IoT: DePINs play an important role in the development of smart cities by providing infrastructure for IoT devices and applications. This includes projects such as the Helium Global Network Map (IoT), which is updated every 30 minutes and demonstrates widespread usage.
DeFi and Asset Management: DePINs support the infrastructure requirements of DeFi platforms by providing secure and reliable data transfer, compute and storage. This enables users to confidently and securely participate in DeFi asset management activities.
Energy and Power Distribution: Decentralized energy networks built on blockchain technology enable peer-to-peer energy trading, more efficient distribution and integration of renewable energy. This can lead to a more sustainable and resilient energy infrastructure.
Supply Chain and Logistics: DePIN can be used to create a more transparent and efficient supply chain by tracking goods and services from production to delivery. This improves traceability, reduces fraud and increases trust between stakeholders.
These use cases and applications highlight DePIN's potential to revolutionize various industries by harnessing the power of blockchain technology and decentralized networks.
What DePIN is today
The market value of DePIN tokens is constantly growing and has already exceeded $25 billion. Most of it is in the categories of computing, data storage and AI.
Speaking of blockchain, most DePIN projects are currently running on the Ethereum blockchain. IoTeX is notable as a blockchain specifically focused on IoT (Internet of Things).
The storage category accounts for the majority of revenue at $25 million, followed by decentralized computing with around $5 million in revenue in 2023.
Promising projects
Attention! Make your own DYOR! If you want to see my portfolio see the description below the chart.
CRUST
The CRUST project aims to use blockchain technology to decentralize and democratize various physical infrastructure networks. These include wireless networks, storage, geolocation, transport and energy, among others. By incentivising people to invest their resources and assets through a token system, CRUST aims to create and maintain real services in a decentralized manner.
In the context of DePIN, projects such as CRUST allow participants to be rewarded in the form of cryptocurrency tokens for their contributions to the network. For example, people can share their unused storage space, bandwidth, or other resources in exchange for tokens. These tokens serve as a medium of exchange and incentive in the network, encouraging more people to join and contribute their resources. The decentralized nature of CRUST and similar projects is expected to lead to more efficient, secure and cost-effective infrastructure networks. By removing the need for centralized control and management, these projects aim to democratize access to basic services and create a more inclusive digital environment. The majority of issuance is controlled by funds and all coins are fully unlocked, allowing for easy manipulation of the asset.
It is also important to note that the DePIN sector is still in its early stages and has significant room for growth and innovation. As the sector matures, projects such as CRUST are likely to play a key role in shaping the future of decentralized infrastructure.
FLUENCE
Fluence is the first decentralized "cloud-free" computing platform that provides an alternative to internet conglomerates by eliminating the risks of centralized control, subjective censorship and data flooding. One of the unique features of Fluence is the ability for trusted relationships and verifiability. Trust relationships are enabled by crypto-economic incentives that reward participants for adding computational resources and performing useful computational tasks.
Fluence uses a decentralized governance model known as Fluence DAO, which is managed using the FLT token. Fluence DAO allows token holders to participate in the management of the project, including updating code, setting the direction of development, allocating funds from the treasury, and inviting new participants to provide infrastructure through the Fluence network. The Fluence project offers an alternative to traditional cloud computing models by enabling decentralized and secure execution of computing tasks. This is achieved through the use of InterPlanetary Consensus (IPC) technology, which provides Fluence with the ability to utilize best-in-class blockchain and advanced cryptographic verification techniques.
The key benefits of Fluence are:
1. Removing the risks of centralized control, subjective censorship and data flooding;
2. Increased security and transparency through a decentralized governance structure;
3. Enabling trust and verifiability provided by crypto-economic incentives.
Overall, Fluence is an innovative DePin project that combines the benefits of decentralized technology and computing power, giving users the ability to use computing resources more efficiently and securely.
STORJ
STORJ is an important part of the DePIN sector. The STORJ project is an example of a decentralized storage network that uses blockchain technologies to provide secure and efficient data storage. Users can share their unused resources, such as free HDD space, with the STORJ network, receiving STORJ tokens in return. Storj supports over 150,000 nodes worldwide, providing high availability and reliability.Storj offers an S3-compatible API, making it easy to integrate into existing systems. Distributing data across multiple nodes increases resilience to failures and data loss. Using Storj enables efficient utilization of existing resources, which helps to reduce energy consumption and CO2 emissions. Storj uses AES256-CTR encryption to protect data, and a decentralized system that provides additional security. Storj is an open source project, which allows the community to contribute to its development and transparency.
In addition, the project has seen the activity of market maker GSR, which provides its services to giants such as Google and Qualcomm.
In 2024, Storj continued to develop and strengthen its position in the DePIN sector. Its decentralized cloud storage solution is attracting increasing attention, and the project is actively working to expand its infrastructure and capabilities.
ORCHID
The Orchid project covers a wide range of projects that utilize blockchain technology and the crypto-economy to create more efficient and transparent networks. Orchid offers a decentralized virtual private network (VPN) that allows users to buy bandwidth from a global network of service providers.
Orchid uses an ERC-20 staking token called OXT, which is the core component of its decentralized model. With this model, Orchid enables users to buy VPN connections using OXT, allowing them to use VPN services with a high level of privacy and security. Using blockchain technology, Orchid promotes the decentralization of network services, providing users with an alternative to traditional VPN providers. Orchid also contributes to the development of the DePIN sector by providing the infrastructure to create more open and transparent networks.
Overall, Orchid is an important part of the DePIN sector, which in turn plays an important role in the development of decentralized networks and applications.
ZEBEC NETWORK
Zebec Network offers a range of integrated products including real-time payment applications, blockchain payment infrastructure and the DePIN network. These products are designed to serve companies of all sizes, as well as integrate blockchain into everyday life.
One of the key aspects of the project is that it supports real-time payments, allowing companies and employees to receive and send payments instantly. This revolutionizes the payments process by speeding up and simplifying the process. In addition, Zebec Network also offers a new token called ZBCN, which replaces the previous ZBC. This change was made to improve functionality and make the project more appealing to the general public.
DIMO
DIMO creates an open, decentralized network that allows car owners to receive and manage the data that their cars collect. This creates new opportunities for developers who can create new applications and services using this data.
DIMO is also collaborating with other projects in the DePIN sector to improve the network's capabilities and capacity. For example, DIMO's partnership with NATIX enables users to gain additional benefits by utilizing vehicle-related applications.
In addition, DIMO is using IoTeX technology to integrate W3bstream, enabling developers to create innovative applications using data collected by cars. This increases the potential of the DIMO network to create new opportunities for users and developers.
Conclusion
DePIN projects show high economic attractiveness, which attracts the attention of investors and entrepreneurs. The DePIN market is expected to grow and its total value is expected to exceed $3.5 trillion by 2028 (Messari.io). DePIN projects are expected to become more mainstream and accessible. This means that DePINs will play an important role in infrastructure development, especially in areas where decentralization and openness are key. Overall, DePIN projects in 2024-2025 represent a rapidly growing and promising field that is impacting various areas including AI, BlockChain, the internet and the economy.
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Using DePINs, people can share and manage resources, enabling the creation of decentralized networks that can provide a variety of services such as wireless networks, storage, computing and sensor networks. By decentralizing DePIN, intermediaries can be eliminated, which increases efficiency and reduces the cost of services. DePIN also uses cryptoeconomics to incentivise and support the development of networks. DePIN is a promising sector that is expected to continue to grow and penetrate new industries.
Year-to-date figures for the entire DePIN sector:
How DePIN works
DePIN projects typically operate by creating proprietary tokens that incentivise node operators to provide access to unused storage space, bandwidth, sensors and other physical devices or resources.
On the other hand, users pay with these tokens to access services provided through the decentralized network. The goal is to balance supply and demand and achieve economies of scale that will eventually make the decentralized network self-sustaining.
DePIN subcategories:
Physical Resource Networks (PRNs):
PRNs are networks that incentivise people to deploy and distribute location-dependent equipment in the real world. This equipment is used to provide tangible and non-transferable goods and services such as wireless networks, storage resources, computing resources and sensors.
The Helium Network is a prime example of a PRN where people can earn tokens by providing 5G coverage through their home or office installations, thereby contributing to the growth and utility of the network.
Digital Resource Networks (DRNs):
DRNs encompass a wide range of services, including bandwidth resources (e.g., CDNs and VPNs), general and special purpose computing resources, database and file storage resources, and artificial intelligence capabilities for machine learning and data models. These networks are designed to provide digital infrastructure and resources that can be accessed and utilized by individuals and businesses around the world.
Filecoin is an example of a DRN where users can contribute to the network by providing storage space from their unused hard drives, thus creating a decentralized storage market.
Both types of DePINs are crucial for the development of decentralized infrastructure, offering alternative solutions to traditional centralized systems. They utilize blockchain technology and token economics to incentivise participation and enable network growth and sustainability.
Using DePIN
Decentralised Physical Infrastructure Networks (DePINs) have a wide range of uses and applications across a variety of industries. Here are some of the most notable:
Wireless Networks: Projects such as the Helium Network are driving the deployment of wireless coverage by incentivising individuals to provide 5G coverage through their homes or offices. This helps improve wireless connectivity in both urban and rural areas, supporting the growth of IoT devices and smart cities.
Storage Resources: Decentralized storage networks such as Filecoin allow users to contribute to the network by providing storage space from their unused hard drives. This creates a decentralized storage market, making it more cost-effective and secure than traditional centralized storage.
AI Capabilities: DePINs can incorporate a wide range of services, including artificial intelligence capabilities for machine learning and data analysis. These applications are critical for industries that require processing and analyzing large amounts of data, such as healthcare, finance and transport.
Smart Cities and IoT: DePINs play an important role in the development of smart cities by providing infrastructure for IoT devices and applications. This includes projects such as the Helium Global Network Map (IoT), which is updated every 30 minutes and demonstrates widespread usage.
DeFi and Asset Management: DePINs support the infrastructure requirements of DeFi platforms by providing secure and reliable data transfer, compute and storage. This enables users to confidently and securely participate in DeFi asset management activities.
Energy and Power Distribution: Decentralized energy networks built on blockchain technology enable peer-to-peer energy trading, more efficient distribution and integration of renewable energy. This can lead to a more sustainable and resilient energy infrastructure.
Supply Chain and Logistics: DePIN can be used to create a more transparent and efficient supply chain by tracking goods and services from production to delivery. This improves traceability, reduces fraud and increases trust between stakeholders.
These use cases and applications highlight DePIN's potential to revolutionize various industries by harnessing the power of blockchain technology and decentralized networks.
What DePIN is today
The market value of DePIN tokens is constantly growing and has already exceeded $25 billion. Most of it is in the categories of computing, data storage and AI.
Speaking of blockchain, most DePIN projects are currently running on the Ethereum blockchain. IoTeX is notable as a blockchain specifically focused on IoT (Internet of Things).
The storage category accounts for the majority of revenue at $25 million, followed by decentralized computing with around $5 million in revenue in 2023.
Promising projects
Attention! Make your own DYOR! If you want to see my portfolio see the description below the chart.
CRUST
The CRUST project aims to use blockchain technology to decentralize and democratize various physical infrastructure networks. These include wireless networks, storage, geolocation, transport and energy, among others. By incentivising people to invest their resources and assets through a token system, CRUST aims to create and maintain real services in a decentralized manner.
In the context of DePIN, projects such as CRUST allow participants to be rewarded in the form of cryptocurrency tokens for their contributions to the network. For example, people can share their unused storage space, bandwidth, or other resources in exchange for tokens. These tokens serve as a medium of exchange and incentive in the network, encouraging more people to join and contribute their resources. The decentralized nature of CRUST and similar projects is expected to lead to more efficient, secure and cost-effective infrastructure networks. By removing the need for centralized control and management, these projects aim to democratize access to basic services and create a more inclusive digital environment. The majority of issuance is controlled by funds and all coins are fully unlocked, allowing for easy manipulation of the asset.
It is also important to note that the DePIN sector is still in its early stages and has significant room for growth and innovation. As the sector matures, projects such as CRUST are likely to play a key role in shaping the future of decentralized infrastructure.
FLUENCE
Fluence is the first decentralized "cloud-free" computing platform that provides an alternative to internet conglomerates by eliminating the risks of centralized control, subjective censorship and data flooding. One of the unique features of Fluence is the ability for trusted relationships and verifiability. Trust relationships are enabled by crypto-economic incentives that reward participants for adding computational resources and performing useful computational tasks.
Fluence uses a decentralized governance model known as Fluence DAO, which is managed using the FLT token. Fluence DAO allows token holders to participate in the management of the project, including updating code, setting the direction of development, allocating funds from the treasury, and inviting new participants to provide infrastructure through the Fluence network. The Fluence project offers an alternative to traditional cloud computing models by enabling decentralized and secure execution of computing tasks. This is achieved through the use of InterPlanetary Consensus (IPC) technology, which provides Fluence with the ability to utilize best-in-class blockchain and advanced cryptographic verification techniques.
The key benefits of Fluence are:
1. Removing the risks of centralized control, subjective censorship and data flooding;
2. Increased security and transparency through a decentralized governance structure;
3. Enabling trust and verifiability provided by crypto-economic incentives.
Overall, Fluence is an innovative DePin project that combines the benefits of decentralized technology and computing power, giving users the ability to use computing resources more efficiently and securely.
STORJ
STORJ is an important part of the DePIN sector. The STORJ project is an example of a decentralized storage network that uses blockchain technologies to provide secure and efficient data storage. Users can share their unused resources, such as free HDD space, with the STORJ network, receiving STORJ tokens in return. Storj supports over 150,000 nodes worldwide, providing high availability and reliability.Storj offers an S3-compatible API, making it easy to integrate into existing systems. Distributing data across multiple nodes increases resilience to failures and data loss. Using Storj enables efficient utilization of existing resources, which helps to reduce energy consumption and CO2 emissions. Storj uses AES256-CTR encryption to protect data, and a decentralized system that provides additional security. Storj is an open source project, which allows the community to contribute to its development and transparency.
In addition, the project has seen the activity of market maker GSR, which provides its services to giants such as Google and Qualcomm.
In 2024, Storj continued to develop and strengthen its position in the DePIN sector. Its decentralized cloud storage solution is attracting increasing attention, and the project is actively working to expand its infrastructure and capabilities.
ORCHID
The Orchid project covers a wide range of projects that utilize blockchain technology and the crypto-economy to create more efficient and transparent networks. Orchid offers a decentralized virtual private network (VPN) that allows users to buy bandwidth from a global network of service providers.
Orchid uses an ERC-20 staking token called OXT, which is the core component of its decentralized model. With this model, Orchid enables users to buy VPN connections using OXT, allowing them to use VPN services with a high level of privacy and security. Using blockchain technology, Orchid promotes the decentralization of network services, providing users with an alternative to traditional VPN providers. Orchid also contributes to the development of the DePIN sector by providing the infrastructure to create more open and transparent networks.
Overall, Orchid is an important part of the DePIN sector, which in turn plays an important role in the development of decentralized networks and applications.
ZEBEC NETWORK
Zebec Network offers a range of integrated products including real-time payment applications, blockchain payment infrastructure and the DePIN network. These products are designed to serve companies of all sizes, as well as integrate blockchain into everyday life.
One of the key aspects of the project is that it supports real-time payments, allowing companies and employees to receive and send payments instantly. This revolutionizes the payments process by speeding up and simplifying the process. In addition, Zebec Network also offers a new token called ZBCN, which replaces the previous ZBC. This change was made to improve functionality and make the project more appealing to the general public.
DIMO
DIMO creates an open, decentralized network that allows car owners to receive and manage the data that their cars collect. This creates new opportunities for developers who can create new applications and services using this data.
DIMO is also collaborating with other projects in the DePIN sector to improve the network's capabilities and capacity. For example, DIMO's partnership with NATIX enables users to gain additional benefits by utilizing vehicle-related applications.
In addition, DIMO is using IoTeX technology to integrate W3bstream, enabling developers to create innovative applications using data collected by cars. This increases the potential of the DIMO network to create new opportunities for users and developers.
Conclusion
DePIN projects show high economic attractiveness, which attracts the attention of investors and entrepreneurs. The DePIN market is expected to grow and its total value is expected to exceed $3.5 trillion by 2028 (Messari.io). DePIN projects are expected to become more mainstream and accessible. This means that DePINs will play an important role in infrastructure development, especially in areas where decentralization and openness are key. Overall, DePIN projects in 2024-2025 represent a rapidly growing and promising field that is impacting various areas including AI, BlockChain, the internet and the economy.
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