What is the Decentralized Physical Infrastructure Network (DePIN)?
We know that building and maintaining physical infrastructure requires a lot of time and money. Whether it is an oil rig (also known as an oil platform or offshore platform) for an energy company or a large network for a telecommunications company, it has always been expensive to build infrastructure and keep it running at scale. In addition to requiring a lot of investment, traditional infrastructure has the so-called "single point of failure" problem due to its high degree of centralization. In these systems, if any critical node fails, the entire system is likely to stop functioning.
What Web3 companies/protocols/projects are doing is creating physical infrastructure with the assistance of users who provide data, computing power, hardware, or anything else needed to build and maintain the infrastructure. The reason these volunteers contribute to Web3 projects is that they are incentivized by tokens. Therefore, we can define DePIN protocols as infrastructure projects that use token incentives to convince individuals to use and contribute to the infrastructure. Usually, there is already a real-world need for the infrastructure project in question. Fields where DePIN protocols have been successful in at least some aspects include computing and wireless networking.
As the name implies, DePINs are decentralized, meaning they are not managed by any single centralized authority, but rather by smart contracts. These contracts run on nodes deployed by individuals. Any device with connectivity and computing power, such as a personal computer or smartphone, can become a node that contributes to the DePIN protocol.
DePIN is a new area in Web3. As the decentralized economy grows, the physical infrastructure itself and how it contributes to other industries will change. Since it may become obsolete in a few months, we can divide DePIN projects into four categories: wireless networks, sensor networks, cloud/storage networks, and energy networks.
Track Trend
In the past few days, the performance of each track has been different. On September 23, the DePIN track performed the best, with an increase of 0.4258%, followed by AI and Liquid Staking. On September 24, the Solana track led with an increase of 0.3394%, followed by DePIN and AI tracks. On September 25, although the overall increase fell, DePIN still maintained its lead with an increase of 0.1638%. In the latest date, the DePIN track performed the best, showing its strong growth potential. Overall, all tracks are positive and showing good development momentum.
DePIN Token Trend
In the currency pair data of the DePIN track, the performance from September 23 to 25, 2024 shows a positive trend. TAO, IOTX, and FIL performed well during this period, with significant appreciation on September 24th and 25th respectively. In particular, FILâs appreciation rate reached 0.0386 on September 25. Although AR and LPT have declined during this period, the overall market sentiment remains positive. On average, TAO and FIL perform particularly well, showing strong growth potential. Overall, the DePIN trackâs currency pair data shows positive market trends, and investors can look forward to good performance in the future.
