DePIN is an emerging concept that stands for decentralized physical infrastructure. In essence, it incentivizes users through token rewards to share their resources such as storage space, wireless networking, broadband, cloud computing capabilities, etc., to collectively build and maintain the network infrastructure.
The DePIN concept debuted at the end of 2022 in the Messari public naming competition for web3 physical infrastructure. Subsequently, Masari adopted this concept in its annual and special reports, making DePIN the unified name for this path.
Compared with traditional physical infrastructure networks, DePIN has the following advantages:
2.1 Low cost and quick start-up
DePIN technology eliminates the costs associated with setting up and maintaining traditional physical infrastructure, as well as the cost of having multiple employees. By incentivizing users with token rewards for sharing their personal network resources, it lowers barriers to entry for the industry. In addition, the startup speed of DePIN, which connects existing devices to the network, is much faster than setting up traditional infrastructure, providing a competitive advantage for unhindered global expansion.
2.2 Decentralization
Networks built through DePIN are based on thousands of nodes, mitigating the risk of data loss due to malicious attacks or technical failures. This is a huge advantage over traditional physical infrastructure networks.
2.3 Open Governance
DePIN allows anyone, anywhere, to participate in and build the physical infrastructure that suits their needs. In contrast, traditional infrastructure projects are often dictated by a central entity, which sets the terms and conditions of your use.
According to Masari’s classification, the DePIN sector can be divided into two main categories: physical resource networks and digital resource networks.
Physical resource networks include wireless networks, geospatial networks, mobile networks, and power grids. Digital resource networks include storage, bandwidth, and computing networks. Examples of both are shown in the image below:
3.1 Physical Resource Network (PRN)
Physical resource networks deploy location-based equipment using incentive measures to provide consumable and irreplaceable cryptographic network services. Its main advantage is to significantly reduce capital investment and operational expenses. As previously mentioned in the benefits of DePIN, physical resource networks allocate traditional capital investment and operational expenses to network participants.
3.2 Digital Resources Network (DRN)
Digital resource networks encourage users to deploy devices using incentive measures to provide fungible digital resources. An important feature of this network is its focus on reusing existing idle resources without requiring participants to purchase new hardware. Digital resource networks aim to provide solutions for data centers and small and medium-sized enterprises to leverage a large amount of idle resources.
4.1 File Currency (FIL)
Filecoin is a decentralized storage network built on the IPFS protocol and is a pioneering project in the decentralized storage sector. The project aims to create an efficient servicing market for globally available storage space, allowing users to pay storage fees at low costs.
4.2 Arwive (AR)
Arweave and Filecoin belong to the same space, and both focus on decentralized storage. Arweave adopts a method called “persistent storage,” by storing data on the blockchain, ensuring that information is never lost.
4.3 World Coin (WLD)
Worldcoin was founded by Sam Altman, co-founder of OpenAI, with the goal of enabling everyone to participate in the global economy. Given that the majority of people around the world currently lack a digital means of verifying their identity, Worldcoin’s vision is to build the largest and fairest digital identity and currency system in the world.
4.4 Helium (HNT)
Helium is a decentralized blockchain network designed specifically for Internet of Things (IoT) devices. In its early stages, Helium attracted a large number of users through blockchain technology and token incentives, encouraging users to deploy wireless networks to build a decentralized network. The low barrier to entry of helium hotspot devices also played an important role in attracting users. Later, due to declining user numbers, the project moved to the Solana network in 2022.
4.5 Iota (Iota)
IOTA is an open source distributed ledger technology designed specifically for Internet of Things (IoT) devices, and aims to support the exchange of data and value between IoT devices. What sets IOTA apart is its adoption of a data structure called “Tangle,” which enables fast transaction confirmations and high throughput while reducing energy consumption and computational resources. This makes IOTA a potential solution to facilitate economic interactions between IoT devices.
4.6 io.net
DePIN Path first caught the market’s attention in mid-2023 and is still in its early stages. For regular users looking to participate, the easiest way is to acquire the relevant tokens. Currently, MEXC has listed all the popular DePIN projects mentioned in this article for both spot and futures trading. You can trade it on the MEXC exchange.
Let’s take the WLD token as an example. Open and sign in to the MEXC app, type WLD in the search bar on the home page, and then select [Spot] To enter the K-line page, click [Buy] To enter the trading page. Choose the order type, enter the quantity, then click [Buy WLD] To complete the purchase process.
Disclaimer: This information does not provide advice on investment, tax, legal, financial, accounting or any other related services, nor does it constitute advice to buy, sell or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for the investment decisions of users.
