Summary:
• The decentralized physical infrastructure network is growing rapidly, with 650 new projects emerging and a market value of US$20 billion.
• It combines the advantages of blockchain with real-world infrastructure, providing solutions such as Wi-Fi, transportation, data storage and energy.
• DePIN promises decentralized infrastructure development, reducing costs and improving global access to blockchain technology.
Combining blockchain technology with practical, real-life applications is becoming increasingly important. In fact, decentralized physical infrastructure networks (DePIN) are an area that is experiencing exponential growth. Approximately 650 new projects have emerged, pushing DePIN’s market capitalization to an impressive $20 billion and generating an estimated $15 million in annual on-chain revenue.
Growing interest in DePIN reflects the potential to revolutionize legacy systems by democratizing essential services and fostering community-driven solutions.
DePIN promises to break monopolies
DePIN is at the forefront of combining cryptocurrency’s decentralized philosophy with real-world infrastructure needs. From Wi-Fi and transportation to data storage and energy, DePIN lays the foundation for extending the transparency, efficiency, and security of blockchain into the real world. This shift aims to enhance the utility of blockchain and provide users with tangible benefits and rewards.
It’s worth noting that the industry is currently controlled by three of the world’s largest and most reputable technology companies: Microsoft, Google and Amazon. Therefore, forming partnerships, growing the business, and generating organic demand may be more challenging in this crypto space than others. At the same time, success will largely depend on the ongoing trend of increased scrutiny of big tech companies.
However, encryption infrastructure is expected to grow exponentially in areas where governments tighten restrictions on dissent and impose tighter controls on free speech. This situation provides significant opportunities for gray market customers.
Messari analysts wrote: “DePIN will become one of the most important areas of crypto investment in the next decade. Its storage solutions, decentralized wireless networks and other hardware networks will be critical to the long-term survival of the industry. They may also It will disrupt an absolutely huge number of monopolies. Traditional cloud infrastructure is a $5 trillion sector globally."
Indeed, DePIN’s appeal lies in its promise to decentralize the wealth and control associated with infrastructure development. It enhances the capabilities of the Internet of Things (IoT) by integrating blockchain and community-driven incentives. In essence, DePIN brings together the necessary computing and storage capacity from disparate sources so that they can be readily used by developers and their applications at any time.
Shann Holmberg, COO of Lunar Strategy, told reporters that this framework is expected to reduce operating costs, scale efficiently, and provide a solid alternative to traditional infrastructure models.
Holmberg said: “By decentralizing resources, it allows for widespread adoption of innovative technologies, even in remote or underdeveloped areas. This global reach enables users around the world to participate in and benefit from decentralized technologies, promoting greater inclusivity digital environment.”
DePIN 如何运作 | 来源：IoTeX
This approach is attracting crypto investors who see it as a scalable solution to global infrastructure challenges. DePIN aims to transform public infrastructure into a more inclusive, efficient and participatory system by leveraging blockchain technology.
DePIN's impact on Web3 is profound. It provides a decentralized model that alleviates bottlenecks and provides a more reliable platform for decentralized applications (dApps). By improving resource availability and global accessibility, DePIN catalyzes widespread adoption of innovative technologies, especially in underserved areas.
Holmberg added: “DePIN transforms traditional infrastructure systems by decentralizing control, shifting control from large enterprises to a community of individual contributors. Similar to miners in a proof-of-work network, each participant will be rewarded in proportion to their investment. Contribute resources and have a say in the system.”
DePIN projects worth paying attention to
Developing an effective incentive model, guiding extension development, and establishing good competition with the Web2 giants can be challenging. However. However, the potential benefits of community control, fair pricing, and incentives make a compelling case for DePIN’s transformative power.
Messari analysts emphasized: "Things like file storage, wireless access and cloud computing require significant capital expenditures and operational challenges, and scaling hardware networks into viable solutions is a challenge. But it turns out that Tokens have proven to be able to balance the development of decentralized hardware investments at scale at this scale."
In fact, DePIN projects like Rowan Energy are pioneering sustainable practices. It uses blockchain technology for clean energy production and consumption in the energy sector. This innovative approach supports the global pursuit of zero emissions and incentivizes the adoption of renewable energy through mechanisms such as NFT carbon emission certificates.
The wireless space is also revolutionizing, with projects like the Helium Network challenging traditional connectivity models and aiming to reward service providers with cryptocurrency. This model embodies DePIN’s potential to provide fair solutions in connectivity, marking a major shift from centralized to decentralized providers.
Holmberg explains: “Helium Network is challenging the dominance of large network providers. Through an ingenious multi-token system, each token plays a vital role in managing network resources and compensating providers. User burn The HNT token is used to obtain connectivity services, while the MOBILE token is the lifeblood of the Helium 5G project.”
DePIN 头部项目|来源：Messari
At the same time, decentralized storage networks like Filecoin are redefining data storage and cloud computing. By ensuring secure, efficient and affordable storage solutions, these projects highlight DePIN's challenges and potential to transcend traditional cloud services.
BitMEX co-founder Arthur Hayes said: “AI cannot learn without data. If data is compromised due to a single point of failure, or a central data storage entity changes access rights or its price, AI that relies on that storage entity will stop functioning. It’s an existential risk, which is why I think AI must use decentralized storage solutions.”
Despite the challenges, the DePIN project marks a solid step towards more democratic, efficient and sustainable infrastructure solutions. This transformative journey involves technological advancement and reimagining the underlying systems that support the digital and physical worlds. #DePIN #基础设施
