Decentralized Physical Infrastructure Networks, or DePINs, represent a revolution in resource sharing, ushering in a new era of global-scale interaction and collaboration. By using tokens as incentives, these networks motivate individuals to share a wide range of resources, including storage, communication traffic, cloud computing, and energy. This decentralized approach transforms the traditional model of infrastructure provision by centralized companies into a form of crowdsourcing that engages users worldwide.
DePINs emerge as a response to the limitations of the current Information and Communication Technology (ICT) infrastructure. Through decentralization, they offer solutions to overcome these limitations, opening up new pathways for technological development and mass collaboration.
THE ORIGIN AND EVOLUTION OF DEPINS
The concept of DePIN gained prominence initially through a report by Messari. Ethereum is often recognized as the primary network for DePIN projects, but Solana has also been gaining ground. Notable leaders in the current market include Filecoin, Render Network, Theta Network, Arweave, and Akash Network, each contributing uniquely to the DePIN ecosystem.
OPERATION AND MECHANISMS OF DEPINS
The operational model of DePINs is based on a tokenized economy that incentivizes users to provide resources such as GPU power, hotspots, and storage space. These tokens, initially without real value, function as a risky investment where users bet on promising projects and reap benefits from the appreciation of these tokens.
OBJECTIVES OF DEPIN PROJECTS
- Attract participants by offering tokens, encouraging them to contribute to network construction and provide resources.
- Attract consumers, thereby increasing the number of developers who join the ecosystem to create products.
EXPANSION AND INNOVATION OF DEPINS
With the development of the Internet, IoT, and AI, DePINs have expanded their focus to include not only storage and communication technologies but also computing, data collection, and sharing. This expansion represents a significant step toward a more comprehensive and interconnected infrastructure.
DEPINS AND THE TRANSFORMATION OF WEB3
DePINs emerge as an important solution to challenges within the Web3 ecosystem, especially regarding centralized infrastructure. They offer a decentralized model capable of reducing pressure on single points of failure, promoting a more robust and adaptable infrastructure for decentralized applications.
EXAMPLES OF DEPIN PROJECTS
- Filecoin and Arweave: Leaders in decentralized storage, these projects are redefining how data is stored, reducing costs, and increasing data security and reliability.
- Helium: Pioneering decentralized wireless networks, Helium is driving IoT through tokenized incentives.
- Render Network: A decentralized GPU rendering platform, offering cost-effective and efficient rendering solutions.
- Theta Network: Innovating in streaming media delivery, Theta Network optimizes content delivery, reducing costs, and improving efficiency.
- AIOZ Network: A global network of nodes encompassing storage, AI, and streaming.
- Chirp: A global decentralized network of physical infrastructure for IoT, Voice, and Internet. Chirp is already in full operation but has not yet launched its token, it is still in the pre-sale round and is expected to release its token in 2024.
FUTURE AND POTENTIAL APPLICATIONS OF DEPINS
The future of DePINs is filled with opportunities and challenges. With technological advancements and increased market awareness, these innovations are expected to address current challenges and revolutionize areas such as data storage, computing, and streaming. DePINs have the potential to become a key infrastructure in supporting the digital economy, bringing real value to society, businesses, and individuals.
Use cases for DePINs are diverse, ranging from WiFi to data storage and transportation. A notable example is the global Helium network map (IoT), updated every 30 minutes, demonstrating its extensive usage.
With DePINs, people can use WiFi, transportation services, storage, IoT infrastructure, data, maps, and more while earning rewards. This is not just a trending growth but also a driver of mass cryptocurrency adoption, promising a significant transformation in how we interact with technology and infrastructure in our daily lives.
