What is DePIN?

May 25, 2024

Overview

DePINs connect physical infrastructure with blockchain, allowing peer-to-peer resource sharing like storage and data. This decentralization reduces costs, expands access, and rewards contributors with tokens. Examples include Helium, Filecoin, NATIX, and Hivemapper.

2 min. read

2 min. read

2 min. read

DePIN, short for Decentralized Physical Infrastructure Networks, is a bridge that connects physical infrastructure with blockchain technology. Instead of relying on big companies, DePINs create peer-to-peer networks where people share their resources, like extra storage space, cloud computing, or internet data. 

Why is DePIN Important?

DePINs are important because they serve as online communities where people share resources like extra internet data or extra storage space. This sharing can make things cheaper and reach more people in areas where traditional infrastructure is lacking. It's a new way to build essential services, putting more control in everyone's hands without third-party interference.

DePIN is secured by blockchain technology and contributors are rewarded with tokens that can be valuable within the network or even traded for cash. Users and contributors are incentivized with tokens that are utilized within the DePin networks.

DePIN Application Examples

DePIN apps showcase the potential of this technology across various sectors. Helium, for example, leverages a network of individual hotspots to provide low-power, wide-area network connectivity for devices that use the internet. This creates an alternative to traditional infrastructure for connecting devices.

In data storage, Filecoin allows users to store data on a decentralized network of computer storage from around the world, offering a secure and potentially more affordable alternative to centralized cloud storage services.  

The concept extends to mobile data as well. NATIX utilizes smartphone data shared by users to create a network that provides real-time traffic alerts and enhances driving experiences. 

Similarly, Hivemapper utilizes dashcam footage from users to build a decentralized, real-time mapping system, comparable to Google Street View. 

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.

2024