✧Summary✦
1. DePIN is one of the few crypto tracks with a trillion-dollar market potential. It is an external manifestation of the decentralized Internet of Things.
2. DePIN is the decentralized Internet of Things, which introduces the centralized Internet of Things into the Web3 world through the token economy.
3. Representative projects in the DePIN track include: IoTex, Filcoin, Render, Helium, Theta Network, Worldcoin, etc.
DePIN is one of the few crypto tracks with a trillion-dollar market potential. It is an external manifestation of the decentralized Internet of Things and is also the track for well-known projects such as Filcoin and Render.
However, as of now, the public still has little understanding of the basic concepts of the DePIN track. LeShen helps everyone understand the future development potential of the DePIN track and select popular DePIN projects worthy of attention in 2024 by introducing several basic concepts such as what DePIN is, what DePIN is used for, and the advantages and challenges of DePIN in detail.
1. What is DePIN?
DePIN is a manifestation of decentralized Internet of Things, which introduces centralized Internet of Things into the Web3 world through the token economy. So far, there is no final and generally recognized basic definition of DePIN. FameEX Research Institute believes that DePIN should be interpreted as "decentralized Internet of Things facilities", which is the latest interpretation of DePIN's full name "Decentralized Physical Infrastructure Networks".
The term DePIN first appeared in the 2022 crypto report of the research organization Messari, but it is not a new industry. Its core meaning is to share and redistribute resources from the bottom up in a decentralized manner for any physical infrastructure. Therefore, DePIN is essentially a fusion of traditional Internet of Things and blockchain networks.
As early as 2013, Filcoin, which emerged out of nowhere, revolutionized the data storage industry by encouraging users to provide storage space through token incentives and decentralized storage in the blockchain network. This distributed data storage method not only has super security, but also organically integrates scattered storage resources, greatly improving resource utilization and reducing storage costs. It is estimated that the cost of storing 1TB of data in the Filcoin network is only 1/120 of that of a traditional server.
The success of Filcoin has also allowed many crypto entrepreneurs to see the opportunity to transform the traditional Internet of Things, and thus many DePIN star projects have been born, such as Render, a decentralized shared computing power, Helium, a decentralized shared WIFI, Theta Network, a decentralized shared video, and Worldcoin, a decentralized shared data. This type of crypto project that integrates traditional physical infrastructure with blockchain networks through tokenized sharing economy should all belong to the DePIN track.
2. What is the use of Depin?
From the previous section, we can see that the DePIN track can be a collection of various IoT industries. Traditional IoT industries such as communications, computing power, storage, energy, edge computing, and smart devices can be organically combined with Web3. In the process of combination, the decentralized combination method solves many problems of the traditional IoT.
Solve the problem of oligopoly and extremely high prices: In most traditional IoT fields such as communications, computing power, storage, and energy, they are mostly controlled by giants such as Telecom, Amazon, Google, Tencent, and Alibaba, and have long formed an oligopoly. This form of centralized resource allocation will make users lose bargaining power and there will be a high waste of resources. Taking data storage as an example, most platforms that provide data storage services only have a few packages to choose from, and the prices are high. The utilization rate of purchased resources is only 68%, and the waste rate is extremely high. The cost of decentralized storage is only 1/120 of that of centralized storage, and users can also maximize the use of resources through fragmented storage.
Solve the problem of low prices and lack of trust at the tail: In most industries, the most difficult problem for tail enterprises to fight against industry oligarchs is user trust. Almost no user dares to store their data on unknown small platforms, but after integration with the blockchain network, the trust problem is easily solved. All small and micro platforms or individuals can share their own physical facilities, whether it is idle CPU computing power, bandwidth, or storage space, they can freely access the blockchain network and share it with users across the network. While gaining token incentives, there is no need to worry about user trust issues.
Solve the problem of central allocation and resource waste: In traditional IoT resources, nearly 1/3 of the resources are idle, which means that hundreds of billions of dollars of resources cannot be effectively used. After small and micro platforms or individuals freely connect idle resources to the network, this problem is solved. Network participants can maximize the use of fragmented resources, avoid waste, and open up a new blue ocean market.
The traditional Internet of Things industry is a huge industry worth trillions of dollars. It has led to the arrival of the third industrial revolution and the interconnected applications of intelligent devices. The birth of the DePIN concept has upgraded the concept of the traditional Internet of Things industry. The decentralized form can obviously solve more problems in the popularization of the traditional Internet of Things industry, and constantly explore innovative operation models and innovative technologies. It brings more hope for the technological transformation of the traditional Internet of Things.
3. What is worth paying attention to in Depin in 2024
3.1、 Filcoin: A long-established high-quality currency for decentralized storage
Filcoin was once a legend in the cryptocurrency field. The decentralized storage concept it proposed attracted the attention of most crypto investors and leading institutions in the crypto field. However, due to the influence of the operation direction and the overall environment, FIL coin plummeted from the highest price of $237.6 to $2.46, a drop of 98.97%.
The reputation of the project has since begun to polarize. Some supporters believe that Filcoin is still a groundbreaking crypto project, but DePIN is too niche and Filcoin was born at the wrong time; some opponents believe that Filcoin is a scam project and that early users who provided data storage for Filcoin suffered huge losses due to mining scams.
Veteran players who have experienced the crypto market crash in 2021 understand that only currencies that have experienced both bull and bear markets have better potential. Up to now, the price of Filcoin is only 2.48% of the highest point, and a lot of bubbles have been squeezed out of the market. Despite the plunge, Filcoin's trading volume and market value are still at the forefront, and it is one of the most anticipated DePIN track quality projects in 2024.
3.2 Render: The pioneer of decentralized rendering network
Render is a high-quality project in the DePIN track with great potential. It is a decentralized GPU rendering platform that can use idle GPUs shared by users to transform two-dimensional or three-dimensional computer models into realistic images and scenes, which play an important role in many fields such as the metaverse, AR/VR, games, short videos/movies, 3D animation, etc. Therefore, in terms of future development potential, Render has unlimited imagination space.
It is worth noting that Render is solving a demand problem with high added value and high technical content, which will bring higher added value and community consensus to RNDR coins. Especially after Render reached cooperation with Macromedia, Disney, Warner Bros., Nick, Microsoft, Hasbro and AT&T, the growth of this added value and future potential is more obvious.
Therefore, although the DePIN track is still in its early stages, Render is still worthy of early attention and long-term holding.
3.3. THETA network: a long-established decentralized video platform with shared bandwidth
In fact, all kinds of currencies in the DePIN track may be the leaders of a new track. The same is true for THETA network. Among the decentralized streaming platforms, THETA network ranks 66th in the cryptocurrency rankings with a market value of $1,051,646,919, and is the leading currency in the decentralized streaming field.
Compared with traditional streaming platforms, THETA network's token model is obviously more attractive, and its original shared bandwidth model allows users to use the bandwidth service provided by the nearest location when watching streaming media, which makes streaming media viewing smoother and the user experience better.
Therefore, THETA network is also a promising DePIN track project, and crypto enthusiasts can pay appropriate attention to it.
IV. Conclusion
In general, the DePIN track is still in its infancy due to the development of technology and limited market demand. As of now, the total market value of the DePIN track is only US$5 billion, which is still insufficient compared to other popular tracks. However, from the perspective of its market potential and technological added value, the DePIN track may become one of the popular tracks that everyone pays attention to. Long-term layout in the market enlightenment stage will bring higher returns than when the market is hot, but crypto enthusiasts still need to pay attention to market volatility risks and make decisions after careful consideration.
On the road of trading, one person can go fast, but a group of people can go far. It is important to choose and stay close to high-quality circles and some positive partners to grow upward!
risk warning
The crypto market is changing rapidly and is highly volatile. Investors need to think carefully and invest rationally when making choices!
