The Rise of Decentralized Physical Infrastructure Networks: Exploring the Current Status and Prospects of DePIN

Introduction

The internet, as a symbol of globalization, actually originated from the products of the Cold War era.

In 1969, the U.S. military needed a network that could avoid single points of failure and autonomously recover to respond to potential nuclear strikes. Thus, the precursor to the Internet, "ARPAnet" (, was born, employing a decentralized distributed architecture design.

However, over the past 55 years, from Web1 to Web2, with the rapid development of the internet, a centralized architecture has emerged amid the waves of commercialization and globalization. Web2 giants have monopolized the discourse and value distribution in the online world.

In recent years, the Web3 wave has emerged, emphasizing Decentralization and de-platforming. However, mere application-layer Decentralization is difficult to solve fundamental problems; the solution lies in how to transform the internet from the underlying technology stack.

In this context, DePIN offers a new solution worth paying attention to: building an efficient P2P physical resource network through the financial attributes and incentive mechanisms of Web3, creating a "Decentralization physical network infrastructure," and granting programmable capabilities to the network, achieving an upgrade of "DePIN+" and constructing a new Internet architecture.

At the same time, the explosion of AI in Web3 has witnessed the expansion of blockchain applications from on-chain to the real world, such as RWA, AI, DePIN, etc.

The rise of DePIN signifies that the boundaries between the physical world and the blockchain world are becoming blurred. Next, let's explore the current status and future of DePIN together.

![The Rising Narrative: A Glimpse into the Present and Future of DePIN])https://img-cdn.gateio.im/webp-social/moments-961ca77024666f97d2c6a383495dfe71.webp(

) Part One DePIN Overview: Definition and Significance

Definition of DePIN

DePIN### Decentralization 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 incentives" bilateral market by combining hardware with blockchain. This community-driven model is more flexible than traditional centralized resource management and also has greater scalability and robustness.

A complete DePIN network consists of project parties, off-chain physical devices, suppliers, and demanders. The basic operating mode includes the following steps:

1. Off-chain hardware devices: usually provided or requested by the project party, mainly divided into:

• Customized dedicated hardware: such as Helium's hotspot devices, Hivemapper's dedicated dash cameras, etc.
• Professional-grade hardware: such as idle computers with GPU/CPU, etc.
• Smart mobile devices: such as smartphones, watches, and other lightweight devices

2. Proof: The data generated by physical devices must be uploaded to the blockchain ledger to provide auditable records, known as Physical Work Proof ) PoPW (.

3. Identity Verification: Verify the on-chain address of the device owner, usually using public and private keys.

4. Reward Distribution: Distribute the token rewards obtained from the device to the corresponding chain address.

5. Demand Matching: Achieving resource exchange and matching between supply and demand sides on the DePIN market platform.

![The Rising Narrative: A Glimpse into the Present and Future of DePIN])https://img-cdn.gateio.im/webp-social/moments-ada04ecc5a29b145ca35f9cb316776ba.webp(

)# Why do we need DePIN?

Traditional physical infrastructure networks have the following issues:

• Centralized control: Vulnerable to attacks, low transparency, users have no control.
• High entry barriers: New entrants find it difficult to overcome high capital investment and complex regulations
• Resource waste: Decentralization management leads to low resource utilization.
• Insufficient incentives: Lack of effective mechanisms to encourage user participation

The core value of DePIN is:

• Resource Sharing and Digitalization: Transforming idle physical resources into tradable digital assets
• Decentralization governance: Based on open protocols and cryptoeconomic models, achieve transparent and fair incentives.
• On-chain settlement: reduce transaction fees
• Innovation: Open and permissionless systems accelerate experimentation and innovation

Current Status of DePIN Development

Track: The DePIN field has extended to multiple directions such as computing power, data, wireless, sensors, and energy. AI has become a key term in recent DePIN developments, leading to the emergence of a number of AI DePIN projects.

Market Size: According to DePIN Ninja data, there are 1,561 DePIN projects launched, with a total market value of approximately $22 billion. Messari predicts that the DePIN market size may exceed $3.5 trillion by 2028.

Main Chain: The current DePIN projects are mainly deployed on public chains such as Solana, IoTex, and Peaq, while Polygon and Arbitrum are gradually emerging as new stars.

Development direction: First, focus on the DePIN middle layer; second, focus on expanding the DePIN demand side.

![The Rising Narrative: A Glimpse into the Present and Future of DePIN]###https://img-cdn.gateio.im/webp-social/moments-001b93fa6c8423f59599d22bbfba2fb7.webp(

) Second Part DePIN Middleware

The large-scale access of DePIN-related IoT devices to the blockchain faces technical challenges and liquidity pressures. Therefore, the DePIN track has derived middleware that connects devices and networks, involving connectivity and bidirectional services, aimed at helping projects quickly launch DePIN applications.

DePIN Infrastructure

• DePHY: Provides open source hardware solutions, SDKs, and tools for DePIN projects.
• W3bStream: Allows IoTeX DePIN projects to generate logic based on smart device data, triggering blockchain operations.

Liquidity Plan

• PINGPONG: DePIN liquidity and service aggregator, optimizing multi-network mining returns.
• Parasail: A re-staking protocol specifically designed for DePIN services, activating idle assets to provide economic guarantees for DePIN services.

Part Three DePIN Application Layer

There are numerous DePIN application layer projects, mainly divided into four major sectors: cloud networks, wireless networks, sensors, and energy.

Cloud Network

Storage:

• Filecoin: Based on IPFS technology, it uses a proof of storage mechanism to ensure data integrity.
• Arweave: Provides permanent storage solutions.

Hashrate:

• Render Network: provides Decentralization GPU rendering services.
• io.net: Achieve efficient collaboration of distributed GPUs.
• PinGo: AI and DePIN project on the TON network, solving the problem of idle computing power fragmentation.

Wireless Network

• Hive 5G: Like Pollen Mobile, building a decentralized 5G network.
• WiFi: such as Wicrypt, Metablox###Roam(, etc.
• LoRaWAN: like Helium, provides low-cost communication services for IoT devices.
• Bluetooth: Enables short-range data transmission.

)# Sensor

• Environment: Such as WiHi, connecting weather sensor resources.
• Geography: such as HiveMapper, which collects map data through vehicle-mounted cameras.

Energy

• Starpower: Create a Decentralization Virtual Power Plant ### VPP (.
• Powerpod: Create a decentralized community charging station network.
• Arkreen: Build renewable energy data applications and services.

![The Emerging Narrative: A Glimpse into DePIN's Present and Future])https://img-cdn.gateio.im/webp-social/moments-45066f8015af4aebe0e842a317041222.webp(

) Part Four: Future Trends of DePIN

1. Integration with Web2 application scenarios: The potential of DePIN lies in its extensive applications in the Web2 industry.

2. Lower hardware threshold: DePIN devices transition to consumer-grade products, such as smartphones, watches, etc.

3. Financialization: The tokenization of physical hardware creates an imaginative space for on-chain finance.

4. DePIN and AI Mutual Support: DePIN provides computing power, data, and other resources for AI, while AI enhances the intelligence level of DePIN.

The challenges of scaling DePIN

• High difficulty in technology integration
• Market acceptance is unclear
• Uncertainty of profit model
• Potential regulatory pressure

Part Five Key Factors for Evaluating DePIN Projects

Hardware

• Self-made vs Third-party
• One-time vs Ongoing Costs
• High Density vs Low Density
• Scarcity vs Commonness

Token Economics Design

• BME### burn and mint equilibrium ( and SFA ) stake for access ( model
• Token Empowerment: Governance Functions, Staking Mechanisms, Liquidity Management, etc.

![The Rising Narrative: A Glimpse into the Present and Future of DePIN])https://img-cdn.gateio.im/webp-social/moments-90c85be1a09c80b5cf7bf17c47f23a66.webp(

) Summary

DePIN builds a distributed bilateral market through Web3 and token economics, integrating global idle resources to address the issues of resource monopoly and inefficiency under centralized models. Despite facing challenges such as technology, market, and regulation, DePIN still demonstrates immense potential.

DePIN relies on the flywheel effect, requiring long-term accumulation and development. In the future, with the improvement of blockchain performance, the maturity of token economic models, and the enhancement of market conditions, DePIN is expected to usher in opportunities for large-scale applications.

![The Rise of Narratives: A Glimpse into the Present and Future of DePIN]###https://img-cdn.gateio.im/webp-social/moments-dd126d3536c461596c7c14b23b2b7e1a.webp(