- DePIN Projects currently have a market value of almost $32 billion.
- As per experts, builders and investors have a potential huge opportunity in the DePIN sector.
‘DePIN’term was first used by Messari in 2022. It was formerly known as TIPIN, MachineFi, EdgeFi, and PoPw. Despite the name change, the fundamental concept of this category has always been creating from scratch a collaborative decentralized network of physically connected objects.
Token awards are given to those who assist in creating these networks. Traditionally, creating a physical network for wireless, IOT, mobility, etc. has required significant financial and human resources.
You can bootstrap your network right away with DePIN Networks. Token incentives just need to be planned, with the demand stage factored in. As soon as token incentives begin to flow in, additional users will join the network in accordance with the device need.
Let’s examine the many levels that make up a DePIN Network’s architecture.
- First Layer: Hardware Infrastructure
- Layer in the Middle: Offchain Computing Infrastructure
- Blockchain Architecture at the Bottom Layer
Users use physical network infrastructure to share resources, offer bandwidth, and gather data.
It could be divided into three smaller categories:
- Sensors
- Wireless
- Servers
Servers
You could participate in several DePin initiatives in this area by sharing:
– Unused GPU – Unused Storage – Unused Bandwidth
– Missing Data Resources – Unused Server Resources
To join a project’s network and begin earning tokens, you must adhere to the requirements laid out by that project.
Sensors
In the fascinating field of sensors, you may even install an application on your regular smartphone and use it to join a DePIN network. A typical smartphone includes over ten installed sensors that might be utilized to gather some rare data.
The following are a few smartphone sensors you should be aware of:
• Barometer: It logs weather patterns and air pressure measurements.
• Microphone: It captures the volume of ambient noise.
• GPS: It logs altitude, latitude, longitude, and past location history.
For businesses and developers looking to create products by utilizing this data through deep learning models, smartphone sensor data can be quite significant.
In addition to smartphone sensors, a lot of projects also release dedicated sensor-based devices that you can purchase to become a part of their network and begin exchanging tokens.
Here are a few instances: Smart cities, energy, mobility, geolocation, smart homes, and environmental
Wireless
In DePin Networks, wireless networks are the most popular category. It benefits a wider range of viewers as well.
• WiFi
• 5G Information
• LoRaWAN
• Bluetooth
Information Layer
Let’s now discuss the middle layer of a DePin Network, which serves as the data and computation layer.
It falls under several subcategories:
1. Retention
2. Calculation
3. Oracles
After gathering data from linked devices and processing it on its end, the Offchain Data Compute layer submits evidence to the Blockchain architecture. When needed, the middle layer additionally offers data oracle via the DAPP interface.
Blockchain Layer
The blockchain architecture at the base, sometimes referred to as the application layer, is where the application is installed. The most widely used blockchain architecture for DePin projects is Solana, although there are additional Layer 1s that are tailored to DePin, such as IOTEX and Peaq Network
Peaq Network is among the most scalable Layer 1 infrastructure for DePin projects; it offers ecosystem support and tooling to help you quickly launch your DePIN projects.
IoTeX: The oldest infrastructure in the DePIN sector is Iotex. It helps DePIN initiatives with end-to-end infrastructure tooling. Several of the top DePIN projects, like Wifi Map DIMO Network, XNET Mobile, etc., are using their infrastructure.
The Present Situation with DePin Projects
678 projects in total
– $20 billion in market capitalization
– Onchain Annual Revenue: $21 million
– Solana (23%) is the top blockchain by market share.
– 600K total nodes
– Leading Project: WiFi Map based on Node Count
– Braintrust is the leading project by 30D revenue.
Tokenomics for DePIN Projects
Over 50% of the token supply is typically set aside for incentives in DePin initiatives, and these incentives grow over a period of 10–30 years. When they get to a larger demand stage, they also have a BME model that is intended to lessen token inflation.
The majority of projects are now in the bootstrapping stage and are offering token incentives to new users. Based on prospective revenue, the following are a few of the most alluring DePin networks.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
