A decentralized physical infrastructure network, or DePIN, is a system of people and hardware that rely on blockchain technology and cryptocurrency incentives to build and operate real-world infrastructure. These networks can support various services, including data storage, telecommunications, mapping, and ride-sharing platforms.
What sets DePINs apart from traditional infrastructure is their ownership and governance model. While conventional networks are typically established and controlled by corporations, DePINs are developed and maintained by decentralized communities. This model is possible through a token-based economy that rewards individuals for contributing resources, such as offering storage capacity or running wireless hotspots. These contributions help grow and sustain the network while ensuring that ownership remains distributed among its users.
DePINs can take various forms depending on the type of infrastructure they support. Wireless networks include technologies like 5G, WiFi, and IoT systems. Server networks may offer storage solutions or virtual private networks (VPNs). Sensor networks can power real-time data applications like weather tracking or digital maps. Energy networks include decentralized power grids and renewable energy systems.
The importance of DePIN lies in its ability to decentralize and democratize the control of physical infrastructure. DePINs align user incentives with network success by replacing centralized ownership with community-driven models. This shift promotes more equitable access and participation and builds more resilient and responsive systems.
DePIN represents a newer segment within the broader blockchain ecosystem. Austin Federa, former Head of Strategy at the Solana Foundation and co-founder of DoubleZero, said that DePIN is to traditional infrastructure what DeFi is to traditional finance. However, unlike DeFi, which has a well-established token landscape, DePIN is still in the early stages of development. However, its token ecosystem is growing steadily, with new projects and tokens emerging each year.
Below is a list of notable DePIN-related tokens currently in the market:
You can acquire several of these tokens on LetsExchange.io at competitive rates.
One standout project in the DePIN space is Hivemapper, which operates on Solana and focuses on creating maps in a decentralized manner. Built and maintained by its community, Hivemapper enables users to contribute by mounting a camera to their vehicle dashboard and recording their surroundings while driving. These recordings are then used to build detailed, up-to-date maps and visualizations that anyone in the network can use for navigation.
Users can also participate by playing AI-training games. These games involve identifying street signs, such as speed limit indicators and stoplights, which helps train the platform’s machine learning models and enhances map accuracy. Contributors are rewarded with Hivemapper’s native token, HONEY. This token serves as compensation and an incentive for users to continue contributing to the map. Additionally, HONEY is used to pay for access to network data, tying the token’s value directly to the platform’s utility.
Another notable DePIN project is Helium, which operates like a decentralized version of traditional telecommunications providers. Built on the Solana blockchain, Helium relies on a distributed network of hardware devices known as Helium Hotspots. These function similarly to mini cell base stations and are deployed by individual users, creating a peer-to-peer (P2P) wireless network that provides internet and mobile coverage. The community earns HNT and MOBILE tokens to host these hotspots and support network connectivity. The decentralized nature of Helium makes it more cost-effective and accessible than traditional telecom infrastructure.
Render is a DePIN project that allows users to contribute their unused GPU power to help render motion graphics, 3D environments, and visual effects. This community-driven effort forms a P2P network where computational resources are shared. In return for lending out GPU power, users earn Render’s native utility token, RNDR. By distributing rendering tasks across a decentralized network, Render reduces the cost and time of rendering complex visuals, making it easier for creators to produce high-quality content at scale.
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.