You feel it's a bit of a waste to live alone in a 600-square-meter villa, so you rent the empty room to six college students, each paying 2,000 yuan per month, and you earn 12,000 yuan per month.
There are many idle cars in the garage, so I rent them all out, charging 500 a day, and earning more than 15,000 a month.
The 2,000-square-meter garden is too big to take care of, so you "reluctantly" rent it to a flower farmer, who pays you 30,000 yuan a month.
By this calculation, you can earn 57,000 yuan a month without working, and live a comfortable life.
Wake up and stop dreaming!
Although you don’t own a Dabieye or a luxury car or a big garden, you must have ridden a shared bike, right?
This is what we are going to talk about today: the sharing economy.
In Web3, even if you don’t have a luxury car or a big garden, you can still become a “landlady” and earn token rewards by sharing idle resources such as Wifi, storage, computing power, CPU, graphics card, etc.
This is DePIN.
With IOTX receiving $50 million in financing, the market value of the DePIN sector has exceeded $29.5 billion. What magic and potential does it have that attracts so much capital?
Today, follow Xiao Ai to track down the clues of these smart money and explore the logic behind the popularity of DePIN.
This article is full of useful information. For the video version, please go to the YT channel [王不爱加密课堂]. If you like it, please like and follow it to show your support~
This article will be divided into three parts:
1. What is DePIN?
2. Why is capital so interested in it?
3. DePIN Token Dragon and Tiger List
What is DePIN?
DePIN stands for Decentralised Physical Infrastructure Networks, which is a model that combines sharing economy and token incentives.
It is different from Bitcoin's PoW or Ethereum's PoS mechanism. It reduces the high threshold and resource concentration problems of traditional industries through decentralization and avoids monopoly.
In traditional industries, such as energy and telecommunications, high upfront investments and information barriers limit the entry of new competitors, which is actually not conducive to industrial development.
Take rocket manufacturing as an example. NASA has to invest hundreds of millions of dollars and spend a lot of time and manpower every year to develop rockets and train a team to manufacture rockets. Musk's strategy is: it is difficult to build a big rocket, so why not build 10 small rockets, pack them into a big rocket, and tie them together, so that it can fly into the sky?
DePIN follows the same logic, breaking down large projects into small parts that are completed by multiple parties, using tokens as rewards to incentivize participants to provide hardware or software resources and provide more economical and faster-iterating services or products.
This approach cuts out intermediaries, reduces costs and accelerates innovation.
Why is capital favored?
We have to first mention Helium, the largest project in DePIN, which invites users to install official hotspot devices to share home Wi-Fi without interfering with personal network use, providing network hotspots for surrounding areas. Users who participate in sharing hotspots can receive HNT as token rewards.
Helium particularly encourages the establishment of hotspots in areas with insufficient network coverage to promote network sharing and popularization.
In fact, through Helium we can capture the core concept of DePIN: using token incentives to encourage people to participate in the construction of the real world. The more people invest, the stronger the network signal in the area, thereby enhancing the construction of the real world.
Capital has always preferred to invest in Web3 projects that combine virtuality and reality. For example, the approval of the Bitcoin ETF is largely due to its use of the Proof of Work (PoW) mechanism, which is similar to mining in the real economy and is essentially similar to a leasing business.
For the older bigwigs in the investment world, they won’t understand if you talk about the Metaverse or WEB3! But if you tell them to invest in mining machines or a hot Internet company, they will understand and see clearly!
A similar sector, RWA, is also a field that combines real industry and virtuality. Even BlackRock wants to join in. However, its threshold is high and it is not suitable for ordinary investors to participate.
In summary, the essence of DePIN is to encourage people to sell their idle resources to the demand side, using tokens as a medium to encourage lenders to enhance the construction of the real world. The investors will get rewards, and the users will get corresponding resources, thus forming a positive cycle.
Actually, when you hear this, this vision is quite great and the idea is very noble. I give it a thumbs up!
So what are some potential DePIN projects based on this? Don’t worry, the hard stuff is coming~
DePIN Dragon and Tiger List
1⃣️Filecoin（$FIL ）
Filcoin, which was launched in 2014, is currently the DePIN project with the largest market value, reaching US$4.2 billion, ranking 22nd among all cryptocurrencies.
Filecoin is a decentralized peer-to-peer storage infrastructure that calls on contributors to provide idle storage space on their computers and pay FIL tokens to storage space providers.
Currently, the Filecoin token has mixed reviews and is known as a doomed project in the last round, but it is still the leader in this field.
Market forecasts suggest that Filecoin may experience an explosion in recent years as the emergence of AI companies will require large amounts of data storage space, which is bound to drive its growth.
2⃣️Render（$RNDR )
Render is a decentralized cloud rendering network. Contributors can provide idle GPU computing power and rent it to other users to complete tasks such as real-time rendering. Contributors can receive RNDR token rewards.
RNDR currently ranks second in the DePIN sector, with a market value of US$2.8 billion and ranks 38th in the overall cryptocurrency ranking.
In addition to belonging to the DePIN track, RNDR is also a member of the AI track. With double buffs in hand, the development of RNDR is also worth paying attention to.
3⃣️The Graph（$GRT ）
GRT is used to index and query blockchain data. Users use GRT tokens to pay for indexing fees, and indexers need to stake GRT so that they can make a profit when users have query needs.
Currently, GRT ranks third in the DePIN track and 42nd in total crypto market value. It has obtained index support from large protocols such as Lido, ENS, Uniswao, and Aave. It can be said to be a strong combination and its prospects are very worth looking forward to.
4⃣️Theta Network（THETA）
Theta Network, which started out as an audio-visual platform, is a blockchain infrastructure project for audio-visual and entertainment.
Users of Theta can share their excess computing power and bandwidth for video streaming and entertainment content delivery networks, and receive Theta token rewards.
Theta’s current market value has reached US$2.1 billion, ranking fourth in the DePIN sector and 50th in the total crypto market value.
5⃣️Helium（HNT）
Helium mentioned at the beginning is a decentralized global Wifi network hotspot. Currently, there are more than 980,000 hotspot providers. Anyone can join and become a hotspot provider, and get HNT token rewards. The more people use your hotspot, the more tokens you will earn.
HNT prices have risen dramatically over the past year, with a current market value of over $1.4 billion, ranking 8th in the DePIN sector and 116th in the total crypto market value.
Helium has also attracted the interest of traditional Mexican telecom companies, which expect to deploy Helium's mobile hotspot network to expand its service area in Mexico, especially in remote areas and places with fewer resources.
With the support of traditional telecommunications companies, Helium has broken through the circle in one fell swoop and even realized the landing of Web3 products in the Web2 field. It is no wonder that investors have entered the DePIN track.
Xiao Ai has something to say
After reading the above, are you impatient to place an order? Why not leave a comment in the comment section to share with other friends which product you think has the most potential?
Xiao Ai believes that DePIN’s original intention is very good, and it has really helped solve some problems in the real world. The vision of building a better life is definitely beyond doubt, after all, the pursuit of a better life is a lifelong ideal of mankind.
But looking at the overall situation, the current encryption volume is too small, and the DePIN track still has a long way to go.
We all hope to see world peace, equal resources, and people living a good and happy life. As Vincent Van Gogh said, great things are not done by impulse, but by a series of small things.
Whether it is Web2 or Web3, everyone is a small drop of water, but if everyone contributes a little, they will eventually become a big river.
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