The Rising Narrative: A Glimpse into the Present and Future of DePIN

Introduction

The internet originated from the needs of the U.S. military during the Cold War, aiming to establish a decentralized and self-recovering network. However, over the past 55 years, with commercialization and globalization, the internet has gradually evolved into a centralized structure, contrary to its original intention. Web2 giants control the discourse and value distribution in the online world.

In recent years, the wave of Web3 has emerged, emphasizing decentralization and de-platformization. However, simple application layer decentralization is difficult to solve fundamental problems and requires a complete overhaul from the underlying technology stack. Against this backdrop, DePIN provides a new solution: constructing an efficient P2P physical resource network through the financial properties and incentive mechanisms of Web3, creating a decentralized physical network infrastructure, and achieving the elevation of DePIN+.

At the same time, the explosion of AI in Web3 has witnessed the trend of blockchain applications expanding from on-chain to the real world. The narrative of DePIN implies that the boundaries between physical reality and the blockchain world are becoming blurred. Next, let's take a look at the present and future of DePIN.

Part.1 Overview of DePIN: What & Why

What is DePIN?

DePIN( Decentralized 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 incentive" bilateral market by combining hardware and blockchain. This community-driven model is more flexible than traditional point-based resource management, with stronger scalability and robustness.

A complete DePIN network includes project parties, off-chain physical devices, suppliers, and demanders. The basic operating mode is divided into five steps:

1. Off-chain hardware devices: provided or required by the project party, including customized dedicated hardware, professional-grade hardware, and smart mobile devices.

2. Proof: Data generated by physical devices must be uploaded to the blockchain through off-chain infrastructure and recorded on an immutable blockchain ledger.

3. Identity Verification: Verify the on-chain account address of the device owner.

4. Reward Distribution: Distribute the token rewards obtained from off-chain physical devices to the corresponding on-chain address.

5. Demand Matching: Completing the exchange and matching of resources on the DePIN market platform.

Why do we need DePIN?

Traditional physical infrastructure networks face issues such as centralized control, high entry barriers, resource waste, and insufficient incentive mechanisms. The core value of DePIN includes:

• Resource Sharing and Digitalization
• Decentralized Governance
• On-chain settlement
• Innovation

Current Status of DePIN Development

The DePIN project mainly involves fields such as storage, computing power, wireless, sensors, and energy. Currently, there are 1,561 DePIN projects online, with a total market value of approximately $22 billion. Messari predicts that by 2028, the DePIN market size could exceed $3.5 trillion.

Current DePIN projects are mainly focused on deployment on public chains such as Solana, IoTex, and Peaq. The project direction is divided into two routes: focusing on the DePIN middleware layer and expanding the demand side.

Part.2 DePIN Middle Layer

The DePIN middleware aims to assist project parties in quickly launching DePIN applications, providing development frameworks, tools, and comprehensive solutions, etc. It mainly includes:

DePIN infra

• DePHY: Provides open-source hardware solutions, SDKs, and tools
• W3bStream: allows IoTeX DePIN projects to generate logic based on smart device data

Liquidity Plan

• PINGPONG: DePIN Liquidity and Service Aggregator
• Parasail: A re-staking protocol specifically designed for DePIN services

Part.3 DePIN Application Layer

The DePIN application layer is mainly divided into four major sectors: cloud networks, wireless networks, sensors, and energy.

Cloud Network

Including decentralized storage and computing:

• Storage: Filecoin, Arweave, etc.
• Computing Power: Render Network, io.net, PinGo, etc.

Wireless Network

including 5G, WiFi, Bluetooth, LoRaWAN, etc.

• 5G:Pollen Mobile
• WiFi: Wicrypt, Roam, Wifi Dabba
• LoRaWAN:Helium
• Bluetooth

sensor

Mainly monitor data such as environment, geographical location, and health:

• Environment: WiHi
• Geography: HiveMapper

Energy

• Starpower: Create a decentralized virtual power plant
• Powerpod: Create a decentralized community charging station network
• Arkreen: Building a renewable energy data access pathway

Part.4 How to view the future of DePIN?

DePIN trend

1. Combine with Web2 application scenarios
2. Hardware barriers lowered
3. Financialization
4. DePIN and AI mutually nourish each other

The bottleneck of DePIN towards scaling.

• The technical implementation is complex.
• Market acceptance is unclear
• Uncertainty of profit model
• Potential regulatory risks

Part.5 Factors to Consider for a DePIN Potential Project

Hardware

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

Tokenomics design

• BME and SFA constitute the basic framework
• Empower tokens with more functionalities: governance, staking, etc.
• Ensure that the interests of both supply and demand sides are aligned with the project party in the long term.

Summary

DePIN builds a distributed bilateral market through the Web3+ token economy infrastructure, integrating global idle resources and addressing the issues of resource monopoly and low distribution efficiency in traditional centralized models. Although it faces challenges in technology, market, and regulation, DePIN relies on the flywheel effect, needing to accumulate strength before achieving breakthroughs and will never become a silent narrative.