From physical rewards to solar power: How DePIN works

DePin has come to the world, providing the opportunity to create Defi projects that reward the procedures in the material world. What is this technology, and how do DePin work? Theoretical studies have foretold for the coded currencies that the encryption tools …

DePin has come to the world, providing the opportunity to create Defi projects that reward the procedures in the material world. What is this technology, and how do DePin work?

Theoretical studies have foretold for the coded currencies have long been predicted that the coding tools that have been currently implemented in Blockchain will be used on the Internet and affect the material world sooner or later. Nick Zabo indicated at the end of the twentieth century that smart contracts can automatically manage physical organisms. More than 25 years have passed, and Blockchain is pronounced firmly in our lives.

However, the limits of decentralized technologies still expand with the emergence of solutions such as DePin.

What is DePin and why Blockchain needs?

DePin meaning decentralized physical infrastructure network. Blockchain participants use the notebook of the General Professor and encrypted currencies to build and preserve specific infrastructure projects in the world. Simply put, DePin includes the use of DePin Blockchain to run and maintain decentralized networks of equipment that can serve a common purpose.

This enables the building to build a central and horizontal communications instead of the hierarchical approach that usually appears with large infrastructure projects such as bridges or roads. Building and managing material infrastructure networks is expensive and complex, so historically, the field of major companies or governments with capital and resources was.

On the other hand, DePin encourages volunteer cooperation among the participants. People participating in DePin networks can use their own devices or buy specialized devices for specific tasks. The options range from simple hard drives to weather stations. However, DePins is usually built around the capabilities available to the general public.

Explanation of Max Thake, co -founder of Peaq, Crypto.News that DePin uses distinctive symbols to motivate people to use connected devices to provide services to other people:

“Let’s imagine the presence of DePin, which focuses on smartphones such as Network Roam. Smartphones, owned by ordinary people, are the component of devices, and data on local communication quality are goods. Telecom companies are looking to improve their services buy these data in the Web3 market, the place where smart contracts enter play, allowing to exchange value between the two sides for the order.”

Max Thick, co -founder of Peaq

What are DePin options?

There are two types of DEPINS: PRN and digital resource networks (DRN).

PRNS are decentralized networks where service providers provide resources for devices (such as sensors or internet access), and these resources are linked to a specific location. Its contribution to the network depends on the site, and therefore it is not interchangeable.

DRNS are networks where service providers offer resources determined by their job, not the site. Here, the site does not matter. Examples of these resources include computing energy, frequency and storage range.

DEPIN’s advantages and disadvantages

The pricing model in the DePin Crypto systems is easier and fair because the infrastructure assets are owned by the public, and the cost of services is not determined by the company’s advantages but by availability. Participants in the form of symbols allow users to obtain regular negative income while benefiting from society.

However, major defects should be considered:

• Weakness on breakthroughs and errors.
• High fluctuations of symbols.
• Technical knowledge is needed to maintain a decentralized infrastructure.

However, with DePin, Blockchain calms the use of DePin in the real world and exchange value, it is linked to its nature to supply and demand in the real world, making this part in a unique position for healthy and health growth.

“People will not stop using navigation applications, requesting food, or using the web because Bitcoin has taken a diving. DePin integrates Web3 with a real value instead of speculation and provides them with an opportunity to upgrade its promise to change the world.”

Looking to the future: What will happen to religion within five years?

According to Messari’s analysts, in 2023, the DePin system grew to more than 650 projects, and the number of the contract increased by 600,000. Researchers noticed the main trends in DePin’s development in 2024.

The first development appeared in the Debine field about ten years ago. During this time, the number of projects increased significantly. The market value of the sector is more than $ 20 billion, with the exception of RWA and Blockchain Oracles, according to Messari experts.

When talking about the future of DePin, Thake expects to become an essential component of the industry along with the fully supportive stack, from the accumulated data of the DePin for training forms to the sensitivity market and the unitary of the artificial intelligence agents.

“Some of the most exciting apps for the DePin model in the energy industry will be, especially when it comes to green energy, which require flexible and decentralized networks, while most old schools follow the central model. People will soon get solar energy harvesting and contribute to the energy network.”

However, DePin projects are not yet common even among the participants in the coded currency industry, not to mention the adoption of the concept on a large scale. Decentralized infrastructure may take time because DePin faces problems that must be solved. However, experts are confident that this system will play a major role in forming the future and changing the principles of operating material infrastructure.