Introduction
Today, the internet, as a symbol of globalization, is actually a product of the peak of the Cold War.
In 1969, during the 'nuclear deterrence' era, the US military hoped to have a network that could avoid centralized single points of failure and autonomously recover in the event of a nuclear strike. Thus, the prototype of the internet, ARPAnet, was born with the principle of 'decentralization' and a fully distributed architecture of 'end-to-end linking'.
However, over the past 55 years, from Web1 to Web2, accompanied by the rapid expansion of the internet's golden age, it has instead fostered a multi-to-one centralized architecture of 'terminal linked to server' amidst the waves of commercialization and globalization, increasingly diverging from its original intent — in the fragmented platform system, Web2 giants monopolize, controlling the absolute discretion of the online world while holding significant influence and power over value distribution.
Therefore, in recent years, the rising tide of Web3, advocating for decentralization and de-platforming, has just begun. Simply applying decentralization cannot solve fundamental contradictions, and issues like efficiency bottlenecks and security risks still exist. The essential challenge lies in thoroughly renovating the underlying technology stack of the internet to disrupt the efficiency and security issues caused by the overly centralized Web2.
In this context, DePIN may provide a new solution worth noting: by combining the financial attributes and incentive mechanisms of Web3, DePIN can construct an efficient P2P physical resource network, creating 'decentralized physical network infrastructure' and enabling the network to have programmable capabilities, helping realize an upgrade of 'DePIN+' to build a new entity entirely different from the traditional internet architecture.
At the same time, the explosive rise of AI in Web3, besides injecting new vitality into it, also witnesses a fact where blockchain applications gradually extend from on-chain activities to the real world, such as RWA, AI, and DePIN.
The narrative of DePIN also signifies that the gap between physical reality and the ever-expanding blockchain world is gradually blurring. Next, let us take a look at the present and future of DePIN.
Part.1 Overview of DePIN: What & Why
What is DePIN?
The concept of DePIN has been talked about for a long time, but from a sorting perspective, it is still necessary to restate it. We focus here on the basic operational model of DePIN. By definition, DePIN (Decentralized Physical Infrastructure Network) is a model that combines physical infrastructure resources with blockchain technology, coordinating global resource collaboration through distributed ledgers, token incentives, and smart contracts.
In short, DePIN creates a 'resource sharing + economic incentive' bilateral market by linking hardware and blockchain. This community-driven model is more flexible than traditional single-point resource management and has greater scalability and robustness.
Generally, a complete DePIN network consists of project parties, off-chain physical devices, suppliers, and demanders, with the basic operational model divided into five steps:
1. Off-chain hardware devices: Typically provided or required by the project party, mainly divided into:
Customized dedicated hardware: For example, Helium requires users to purchase Helium hardware hotspots manufactured by third-party manufacturers to provide hotspot signals for nearby IoT devices and earn mining rewards; Hivemapper encourages users to contribute to the map network through its dedicated dashcam (HiveMapper Dashcam).
Professional-grade hardware: idle computers equipped with GPU and CPU chips can start supplying computing power/data by simply downloading a browser plug-in. For instance, Heurist allows owners of idle GPU devices to download its miner program and set up miner nodes to start earning mining rewards by sharing their computing power. The participation method in io.net clearly specifies that the entry threshold for devices to connect to the network is the Nvidia GeForce RTX 3050.
Smart mobile devices: manifested as lightweight mobile devices such as smartphones, smartwatches, wristbands, and even rings, joining the DePIN network in two ways: running node programs and becoming the control end of DePIN hardware, or directly providing sensor data or computing resources. For instance, Silencio uses the built-in microphones of people's smartphones to map noise pollution around the world; Acurast uses old phones' storage space to build a decentralized cloud that anyone can contribute to.
2. Proof: The data generated by physical devices needs to be uploaded to an on-chain immutable blockchain ledger via off-chain infrastructure, providing stakeholders with transparent and auditable infrastructure operation records to prove that they have made certain contributions to earn incentives. This verification method is called Proof of Physical Work (PoPW).
3. Identity verification: After the data is validated, the on-chain account address of the device owner needs to be verified, generally using public-private key pairs. The private key is used to generate and sign physical work proofs, while the public key is used externally to verify the proof or as an ID tag for the hardware device (Device ID).
4. Reward distribution: After verifying the data, the token rewards obtained from the off-chain physical devices are sent to the on-chain address, involving the token economics of DePIN. Token economics, as the economic foundation of the data value network, is key to whether DePIN projects can operate well.
BME: Token burning mechanism, where users on the demand side destroy tokens after purchasing services, thus the degree of deflation is determined by demand; in other words, the stronger the demand, the higher the token value.
SFA: Requires supply-side users to stake tokens to become qualified miners. The supply determines the degree of deflation, meaning the more miners providing services, the higher the token value.
5. Demand matching: A DePIN market platform where both supply and demand sides can buy, sell, and lease resources to complete exchanges and matches; at the same time, the DePIN market provides real-time market data, including asset prices, historical performance, and energy production data, which helps ensure fair pricing and is typically managed by a decentralized autonomous organization (DAO) that allows stakeholders to participate in the decision-making process.
Source: FMG
Why do we need DePIN?
A simple example: Noise pollution is a particularly common phenomenon in urban life. Quantifying noise pollution data has commercial value for real estate developers, hotels, restaurants, and has reference significance for urban planning and academic research. However, would you be willing to allow a private company to install microphones all over your city? Or imagine the upfront costs of doing so; how far could its coverage extend? How fast could it expand?
If this is a user-initiated noise detection network, everything becomes much simpler. For example, Silencio deploys noise pollution sensors through an application downloaded on users' smartphones, allowing mobile users to establish a global measurement network by providing accurate, hyper-local noise pollution data and earning token rewards, while the platform profits by selling noise pollution data.
This is one of the meanings of DePIN. In traditional physical infrastructure networks (such as communication networks, cloud services, energy networks, etc.), due to massive capital investment and operational maintenance costs, the market is often dominated by large companies or giants, and this centralized industry characteristic brings several major dilemmas and challenges.
Centralized control: Controlled by centralized entities, posing risks of single points of failure, vulnerability to attacks, and low transparency, with users lacking control over data and operations.
High entry barriers: New entrants must overcome high capital investment and complex regulatory hurdles, limiting market competition and innovation.
Resource waste: Due to centralized management, there are instances of resource idling or waste, leading to low resource utilization rates.
Insufficient incentive mechanisms: Lack of effective incentive mechanisms leads to low enthusiasm among users to participate and contribute network resources.
The core value of DePIN can be summarized in four points:
Resource sharing and digitization: Transforming idle physical resources (such as storage, communication, computing power) into tradable digital assets in a decentralized manner;
Decentralized governance: Based on open protocols and cryptoeconomic models, users contribute capital, assets, and labor towards a common goal and are incentivized in a transparent and fair manner;
On-chain settlement: The blockchain reduces costs by becoming a single source of shared ledger for all market participants;
Innovation: In an open, permissionless global system, the speed of experimentation is an order of magnitude higher than that of centralized infrastructures.
Current Status of DePIN Development
Track: As one of the earlier fields in blockchain development, DePIN has a relatively long development history, with the earliest established projects such as the decentralized network Helium and decentralized storage projects like Storj and Sia primarily focusing on storage and communication technologies.
Source: Messari
However, with the continuous development of the internet and IoT, the demands and innovative requirements for infrastructure are increasing. DePIN projects are mainly expanding into computing power, data collection and sharing, wireless, sensors, energy, etc. However, from the current market capitalization rankings of the top 10 projects in the DePIN field, most belong to the storage and computing power sectors.
AI is the keyword for DePIN in this cycle. Due to DePIN's natural suitability for the decentralized sharing needs of AI data and computing power, a number of AI DePIN projects have emerged, dedicated to integrating resources such as computing, storage, networks, and energy on a global scale to provide underlying infrastructure support for AI model training, inference, and deployment.
Source: CoinMarketCap
Market Size: According to data from DePIN Ninja, the number of DePIN projects that have gone live has reached 1,561, with a total market value of approximately $22 billion. For the total potential market size of the DePIN sector, Messari predicts that by 2028, the DePIN market size may exceed $3.5 trillion, potentially adding $10 trillion to global GDP in the next decade (reaching $100 trillion in ten years).
L1/L2: Due to high throughput and low gas fees, current DePIN projects are mainly focused on deployment on the Solana public chain, as well as specialized chains like IoTex and Peaq. Meanwhile, Polygon and Arbitrum are gradually becoming rising stars.
Source: Cryptoresearch
As the hardware supply chain has matured, project parties do not need to invest heavily in R&D efforts. Therefore, the current DePIN projects have split into two directions based on focus: one focusing on the DePIN middleware; the other focusing on the expansion of the DePIN demand side.
Part.2 DePIN Middleware
The large-scale integration of IoT devices related to DePIN into the blockchain faces technical challenges and liquidity pressures, such as hardware design and production, how to achieve trusted transmission and data processing of off-chain data on-chain, and token economic design. Consequently, the DePIN track has derived middleware that connects devices and the DePIN network, covering connection and bidirectional services, aimed at helping project parties quickly launch DePIN application projects by providing development frameworks, developer tools, overall solutions, etc.
Not only does it include developer-friendly tools and one-stop services like DePHY and Swan; but it also features re-staking protocols like Parasail specifically for DePIN, aimed at enhancing the liquidity and value utilization of native tokens in the DePIN network.
DePIN infrastructure
DePHY: Aims to provide open-source hardware solutions, SDKs, and tools for DePIN projects, while lowering the manufacturing and network message transmission costs of bridging hardware products to the blockchain through synchronously operating 500ms off-chain network nodes.
W3bStream: Off-chain computing protocol W3bstream allows IoTeX DePIN projects to easily generate logic based on smart device data to trigger blockchain operations. Some well-known IoTeX-based DePIN projects include Envirobloq, Drop Wireless, and HealthBlocks.
Currently, with the increase in DePIN projects providing frameworks and solutions, DePIN application layer projects based on their infrastructure are also gradually emerging, such as Pebble's EnviroBLOQ based on IoTeX, Dimo and Drife based on W3bstream, and Starpower and Apus Network based on DePHY.
Liquidity Solutions
PINGPONG is a DePIN liquidity and service aggregator that optimizes and maximizes mining rewards across multiple networks through innovative tools and solutions.
Parasail is a re-staking protocol specifically for DePIN, providing economic guarantees for DePIN services by activating idle assets (such as staked or re-staked tokens) in mature networks, helping DePIN projects attract more users and service providers.
Using Parasail as a detailed example, Parasail currently mainly provides re-staking services on the Filecoin chain and will open re-staking on chains like Iotex, Arbitrum, and Ethereum in the future. The following illustrates how Parasail works using FIL as an example:
Staking FIL tokenization: Storage providers can stake FIL and mint pFIL tokens at a 1:1 ratio.
Open market for pFIL: Storage providers can sell pFIL for liquidity, while token holders can purchase pFIL to earn FIL mining rewards.
Risk recovery and reward distribution: When staked FIL is released or miners earn block rewards, the Repl protocol recovers FIL and buys back pFIL through auctions, distributing excess profits as rewards.
Part.3 DePIN Application Layer
The DePIN application layer occupies a significant portion of the DePIN track count. Based on publicly available research reports and the summary of DePIN browser projects, it can be mainly divided into four major sectors: cloud networks (storage, computing), wireless networks (5G, WiFi, Bluetooth, LoRaWAN), sensors (environmental, geographic, health), and energy.
Cloud Networks
DePIN's field on cloud networks includes decentralized storage and computing.
▎Storage
Decentralized storage is a key component of the DePIN ecosystem, aimed at addressing issues such as high costs, privacy risks, and insufficient resistance to censorship in traditional centralized storage:
As one of the most well-known DePIN projects, Filecoin is based on IPFS technology (IPFS itself is already a widely recognized distributed file system) and uses a storage proof mechanism to ensure data integrity and authenticity. Miners earn FIL rewards by contributing storage space, and users pay for data storage as needed. This model not only reduces storage costs but also activates a large amount of idle hard disk resources globally.
Arweave provides a permanent storage solution, where users only need to pay once, making it very suitable for data that needs long-term preservation, such as historical archives, NFT metadata, or blockchain transaction records.
Overall, compared to traditional cloud storage, the resistance to censorship and transparency of decentralized storage is evidently superior, although storage speed and initial entry barriers may still need optimization.
▎Computing Power
As a core productive resource in this wave of AI, decentralized computing power and other DePIN projects are a complementary solution to the existing centralized cloud giant-dominated computing service landscape (CePIN) rather than a direct replacement: that is, cloud service giants with vast computing resources are responsible for training large models and high-performance computing for 'urgent and heavy demands'; the decentralized cloud computing market is responsible for computing small and medium models, fine-tuning large models, and deploying inference, thus catering to a more diverse 'flexible low-cost demand.'
It essentially provides a dynamic balance supply-demand curve between cost-effectiveness and computing power quality, which aligns better with the economic logic of resource optimization in the market. Represented by established decentralized computing projects like Render Network and Akash Network, along with this year's latest DeAI narrative giant io.net:
Render Network: Provides decentralized GPU rendering services, offering flexible, low-cost computing support for applications requiring real-time computation (such as virtual reality, 3D rendering, and industrial automation), especially in the fields of the metaverse and real-time interactions.
io.net: Going further, it is not only a platform for matching computing power resources but also achieves efficient collaboration of distributed GPUs through a complete product architecture.
IO Cloud: Supports users in creating GPU clusters as needed for complex tasks such as AI model training.
IO Worker: Provides management tools for computing power suppliers, including temperature control monitoring, computing power utilization analysis, etc.;
IO Explorer: Provides visualization of network statistics and reward data, facilitating users in tracking the dynamic flow of computing resources.
PinGo is an AI and DePIN project on the TON network, aimed at solving the fragmentation and idleness of idle computing power resources, providing the foundational computing capability for building AI models. PinGo was originally a Cpin Web2 company with nearly 100,000 devices, and these devices will be integrated into its own DePIN network in the future.
However, decentralizing computing power to mobilize idle computing power is not easy. Large model training requires stability, and any interruption results in high sunk costs. Because the technical details of delivering computing power are complex, bilateral scheduling models similar to Uber and Airbnb fail here; moreover, Nvidia's CUDA software environment and NVLINK multi-card communication make replacement costs extremely high, with NVLINK requiring GPUs to be concentrated in the same data center due to physical distance limitations.
In this context, the business model of decentralized computing power supply is difficult to realize, reducing it to mere narrative; many computing power projects are forced to abandon the training market and instead serve the inference market. However, in the absence of large-scale application outbreaks, the demand for inference is insufficient, and large enterprises seem more stable and cost-effective by self-building to meet inference needs.
Wireless Networks
Dewi (decentralized wireless) is a particularly important part of the DePIN track, allowing many independent entities or individuals to collaborate in building token-incentivized wireless infrastructure, providing services for IoT and mobile communications. Shareable wireless networks include:
Hive 5G: Provides high download speeds and low latency, such as Pollen Mobile, which utilizes decentralized base stations to build a distributed 5G network aimed at reducing mobile communication costs and improving coverage;
WiFi: Provides network connections in specific areas, such as Wicrypt, where users can purchase dedicated devices to contribute WiFi and earn tokens; Metablox (now renamed Roam) is similar to a 'Web3 version of a universal key', allowing users to share their self-built global public WiFi networks; Wifi Dabba mainly collaborates with local priority TV operators in India.
Low-Power Wide Area Network (LoRaWAN): Facilitates IoT communications, with leading DePIN project Helium being a typical representative, providing low-cost, high-coverage communication services for IoT devices through LoRaWAN routers, thus replacing the centralized service model of traditional telecom networks. Users receive HNT rewards by running routers, and this model is particularly suitable for scenarios needing large-scale device coverage, such as agricultural IoT, logistics tracking, and environmental monitoring.
Bluetooth: Enables short-range data transmission.
This network model is suitable for scenarios such as smart cities and agricultural IoT. However, the advantage of decentralized communication lies in its low-cost replacement of traditional telecommunications infrastructure, though deployment efficiency and physical device maintenance remain significant challenges. Dewi needs to leverage traditional operators' networks to expand the market, such as supplementing DePIN traditional operators or providing them with relevant data.
Sensors
Sensor networks are another niche area of DePIN, consisting of interconnected devices, each designed to monitor and collect specific data from their environment, primarily through monitoring and capturing data on environment, geography, health, etc.:
Environment: A clear use case is weather forecasting. WiHi aims to become a unified platform connecting all these entities, simplifying data sharing, improving prediction accuracy, and enhancing climate monitoring. Any entity operating weather sensors can apply to contribute data to WiHi.
Geography: For example, HiveMapper collects the latest high-resolution data (4K street-level images) through cameras installed by holders (such as taxi drivers and couriers) to contribute data for mapping image rendering. Demanders can purchase existing maps or reward new area data for sudden events. Currently, obtaining timely data on the external conditions of houses for insurance assessments, recent road conditions for autonomous vehicle developers, and information about construction zones, as well as real-world assets (RWA), has real commercial value.
Energy
The traditional energy market faces the following issues: supply-demand mismatch within regional energy networks, lack of transparent and tradable energy markets, a vast undeveloped clean energy market, and slow and costly expansion of energy networks. Through the decentralization of energy networks, DePIN enables users to directly utilize their excess energy production. This method not only encourages more prudent energy consumption but also reduces reliance on traditional energy suppliers. The DePIN approach to energy networks can provide a more democratic, efficient, and beneficial model for energy production and consumption.
Starpower: By creating decentralized virtual power plants (VPP), it connects small power supply networks with the demand side, reducing energy transmission and improving energy utilization efficiency.
Powerpod: By creating a decentralized community charging station network, it changes the way electric vehicles (EV) are charged.
Arkreen: It builds applications and services by incentivizing providers to offer capacity for solar energy devices and other similar data, including pathways for renewable energy certification (REC) issuers and green computing operators to access data.
Part.4 How to View the Future of DePIN?
DePIN Trends
▎Integrating with Web2 Application Scenarios
The potential of DePIN lies not only in its underlying decentralized technological advantages but also in its extensive applications in Web2 industries, spanning multiple fields such as IoT (Internet of Things), smart cities, energy sharing, edge computing, etc. Each field represents an important role of DePIN in promoting the integration of the physical world and digital networks.
One can imagine a future living scenario: on a morning in 2030, Alice starts Helium to provide communication support for nearby pedestrians and devices during her commute to work. On her way to work, she opens DIMO to record her vehicle's device data and continuously contributes the latest map data for Hivemapper, arriving at her office, which is a solar energy company. Alice skillfully installs Arkreen collection devices for various solar components, allowing users to record their carbon footprint.
Source: Waterdrip Capital
▎Lowering Hardware Thresholds
Previously, the main businesses of DePIN devices included computing power, storage, and bandwidth, with devices typically fixed at a certain location. Currently, DePIN is showing a transition from professional-level devices to consumer-grade products, such as phones (Solana Mobile Saga), watches (WatchX), AI smart rings (CUDIS), electronic cigarettes (Puffpaw), etc. These devices are compact and flexible, easily portable, and even wearable.
As the most widely used hardware, the reduction of hardware thresholds is expected to further expand the user base: on the one hand, the sensors and computing modules of encrypted phones are natural recruitment ends that can participate in the DePIN economy, lowering sales thresholds and increasing usage frequency; on the other hand, the built-in encrypted app market on encrypted phones serves as an excellent user entry point for dApps. This type of market is diverse and has a wide range of applications, waiting to be deeply explored, representing a vast potential blue ocean.
▎Financialization
The tokenization of physical hardware also opens up the imagination for on-chain finance for DePIN:
Staking liquidity pools increase revenue sources, such as the HONEY-JitoSOL liquidity treasury incentive program launched by Hivemapper, which further enhances the incentive effect.
DePIN hardware asset securitization on-chain, issuing products similar to traditional financial Reits models;
Based on the tokenization of data assets, financial products supported by data can be created, such as DIMO's vehicle data which can be used for on-chain auto loans.
▎DePIN and AI mutually nourish
The features of DePIN are also naturally suited for the development of AI.
First, DePIN can serve AI at multiple levels such as computing power, models, and data, releasing capabilities that AI originally lacked in a decentralized manner. AI is essentially an intelligent system trained on massive amounts of data, and the rich edge-side data collected by IoT devices in DePIN provides extensive training and application scenarios for AI. Currently, many AIPIN projects capture data through hardware sensors and use AI to optimize data processing capabilities, achieving end-to-end process automation at the application level, releasing the potential of segmented industry scenarios.
At the same time, the addition of AI makes DePIN smarter and more sustainable. AI can enhance device efficiency and optimize network resource allocation through deep learning and predictions, assist in auditing smart contracts, provide personalized services, and even dynamically adjust the economic incentive model of DePIN projects through algorithms.
Constraints on the Scale-Up of DePIN
Despite the attractiveness of the DePIN concept, the complexity of technical implementation, market acceptance, regulatory policies, and other factors significantly increase the difficulty of its scaling.
From storage to computing power, from communication to energy, each DePIN solution requires the integration of different types of physical hardware and decentralized protocols, posing high demands on hardware manufacturers, network developers, and participating nodes.
Moreover, the market's acceptance of the DePIN model remains unclear. In practice, how to persuade enterprises or individuals to switch to DePIN's network infrastructure and bear the high initial costs is still an unresolved challenge.
The uncertainty of profit models also limits the attractiveness of DePIN. Currently, many projects rely on token economic incentives for participants to provide resources, but whether this model can maintain long-term sustainability depends on the market's recognition of token value and the growth rate of actual demand. The issue is that most projects' narratives appear somewhat outdated, and the product experience is often insufficient to compete with Web2. If it solely relies on token incentives to attract users, the collapse of the incentive model could lead to a 'death spiral.' Due to its dual reliance on hardware sales revenue and token models, the stability of the economic system is crucial. If token values fluctuate too much or the costs of hardware deployment and maintenance are too high, the economic incentives of the entire system will be difficult to maintain, potentially leading to user attrition and even network paralysis.
Additionally, as DePIN involves key areas like storage, computing, and communication, its potential influence may trigger national or regional legal and policy interventions. For instance, decentralized storage networks may be used to store sensitive or illegal content, leading regulatory bodies in certain countries to apply pressure on the entire network, demanding stricter content review mechanisms (previously, some individuals stored politically sensitive information through decentralized storage projects).
In summary, from the complexity of technology to market acceptance, as well as regulatory uncertainties, each step affects whether it can truly become a new benchmark for infrastructure. How to break through this pattern and allow users to truly feel the economy and unique value of DePIN is the competitive pressure it must face.
Part.5 Factors to Consider in Evaluating a DePIN Potential Project
▎Hardware
Homemade vs. third-party: Currently, most dedicated hardware for DePIN projects is produced by third-party manufacturers. The advantage lies in ensuring its professionalism, but the concern is that its expansion may be affected by the third-party supply chain. In contrast, projects with strong hardware supply chain capabilities can achieve rapid business growth in the first curve by selling devices and adopting agency models.
One-time vs. ongoing costs: Some DePIN networks have one-time costs, such as Helium, where users do not need to do much additional work after purchasing their hardware devices to set up hotspots and provide passive coverage to the network; others require ongoing user participation. If contributors pay a one-time cost (time or money) at the beginning rather than continuous costs, the expansion of the DePIN network will be easier; passive networks are easier to set up and thus easier to scale.
High density vs. low density: The density of hardware coverage also needs to be considered in DePIN projects, such as XNET, which is establishing a carrier-grade CBRS wireless network. Their network radios need to be installed by professionals from local ISPs, making installation challenging and unfavorable for density coverage, but due to their more professional equipment, their network still has expansion potential. High-density networks require more contributors to reach threshold scale. In contrast, low-density networks can utilize more complex hardware and/or professional contributors.
Scarcity vs. commonality: For example, XNET is establishing a carrier-grade CBRS wireless network. Their network radios need to be installed by professionals from local ISPs, making the installation challenging and unfavorable for density coverage. However, due to the more specialized and scarce resources of equipment, their network still has expansion potential.
▎Design of Token Economics
Token economics, as the economic foundation of the data value network, is key to whether DePIN projects can operate well. The two mainstream models are BME (burn and mint equilibrium) and SFA (stake for access). BME and SFA form the basic core framework of DePIN projects, and empowering tokens enhances the token economy, such as:
Using points as pre-mining commitments to miners, tokens can be exchanged at a certain ratio after issuance, or a points + token economic model can be adopted.
Endowing tokens with governance functions allows holders to participate in significant network decisions, such as network upgrades, fee structures, or fund reallocation.
The staking mechanism incentivizes users to lock tokens to maintain the stability of token prices;
Project parties can also use part of their income to purchase tokens and pair them with other major cryptocurrencies or stablecoins to join liquidity pools, ensuring that tokens have sufficient liquidity for users to trade without significantly impacting prices.
These mechanisms help ensure that the interests of users on both supply and demand sides remain aligned with those of project parties in the long term, thus achieving the long-term success of the projects.
Summary
Focusing from a macro perspective, we find that Web3, as a value network, has immense potential to reshape production relationships and release productive forces. The core logic of DePIN is to build a distributed bilateral market by adopting the 'Web3 + token economy' infrastructure. From this perspective, various sectors such as storage, computing power, data, and communication networks could potentially find new vitality through the new model of DePIN.
By integrating global idle resources (such as storage, computing power, communication devices, etc.), it addresses the issues of resource monopoly and inefficiency in traditional centralized models. This model effectively connects global hardware resources with user demand, reducing the costs of resource acquisition and improving the resilience and risk resistance of infrastructure, laying the foundation for the popularity and application of decentralized networks.
However, although DePIN shows great development potential, it still faces challenges in terms of technological maturity, service stability, market acceptance, and regulatory environment. Today, the increasing richness and maturity of blockchain performance and token economic models, along with market cycles, have prepared for the explosion of DePIN, yet large-scale applications still lack an opportunity. 'Bending to keep one's place, waiting for the right moment, cannot fight against fate,' DePIN relies on the flywheel effect, requiring broad observation and selective extraction, piling up thickly and releasing thinly, and it will never become a silent narrative.
Reference:
State of DePIN 2023
https://DePIN.ninja/leader-board
https://DePINhub.io/rankings/investors
FMG Deep Research Report: Five Opportunities in the DePIN Track from the Bottom Up
Exploring DePIN, Seeking the 'Orthodoxy' of the Track
*All content on the Coinspire platform is for reference only and does not constitute an offer or advice for any investment strategy. Any personal decisions made based on this article are the sole responsibility of the investor, and Coinspire is not responsible for any profits or losses arising from this. Investment carries risk, and decisions should be made with caution!