Decentralization Physical Infrastructure Network ( DePIN ) Current Status and Future Prospects

Introduction

The Internet, as a symbol of globalization, actually originated during the Cold War. In 1969, the U.S. military developed the decentralized "ARPAnet" ( as a prototype of the Internet to counter nuclear strikes and avoid single points of failure.

However, over the past 55 years, from Web1 to Web2, the development of the internet has instead fostered a centralized platform system. Web2 giants hold the power of discourse and resource allocation in the online world.

In recent years, Web3 has emerged, advocating for decentralization and de-platforming. However, simply achieving decentralization at the application layer is insufficient to fundamentally solve the problem; a complete overhaul of the underlying technology stack is necessary.

In this context, DePIN) decentralized physical infrastructure network( provides a new idea: by leveraging the financial attributes and incentive mechanisms of Web3, to construct an efficient P2P physical resource network, create programmable decentralized physical network infrastructure, achieve the upgrade of DePIN+, and build a new internet architecture.

At the same time, the explosion of AI in Web3 is also driving the expansion of blockchain applications from on-chain to the real world, such as RWA, AI, and DePIN. The rise of DePIN means that the boundaries between physical reality and the blockchain world are becoming blurred.

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

Overview of DePIN

) Definition and Operating Model 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 incentive" bilateral market by combining hardware with blockchain, making it more flexible than traditional point resource management, with stronger scalability and robustness.

A complete DePIN network consists of project parties, off-chain physical devices, suppliers, and demanders, with basic operating modes including:

1. Off-chain hardware devices: including dedicated hardware, professional-grade hardware, and smart mobile devices.

2. Proof: By physical work proof ) PoPW ( verification device generated data

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

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

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

) The significance of DePIN

DePIN can address a series of issues faced by traditional centralized physical infrastructure networks:

• Centralized control: Vulnerable to attacks, low transparency, users lack control over their data
• High entry barriers: restrict market competition and innovation
• Resource Waste: Low Resource Utilization Rate
• Insufficient incentive mechanism: low user participation

The core value of DePIN includes:

• Resource sharing and digitization
• Decentralization governance
• On-chain settlement
• Fast innovation speed

Current Status of DePIN Development

DePIN covers multiple fields including storage, computing power, data collection and sharing, wireless, sensors, and energy.

According to data, the number of DePIN projects currently online has reached 1,561, with a total market value of approximately $22 billion. Messari predicts that by 2028, the DePIN market size could exceed $3.5 trillion.

The current DePIN projects are primarily focused on deployment on public chains such as Solana, IoTex, and Peaq, while Polygon and Arbitrum are gradually emerging as rising stars.

The DePIN project is mainly divided into two directions: focusing on the middle layer and focusing on expanding the demand side.

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

DePIN Middleware

The large-scale access of DePIN-related IoT devices to the blockchain presents technical difficulties and liquidity pressures, thus giving rise to middleware that connects devices to the DePIN network, providing project parties with development frameworks, tools, and comprehensive solutions.

) DePIN Infrastructure

• DePHY: Provides open-source hardware solutions, SDKs, and tools.
• W3bStream: Supports logic generation based on IoT device data to trigger blockchain operations.

Liquidity Solutions

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

DePIN Application Layer

Cloud Network

Including decentralization storage and computing.

Storage:

• Filecoin: A distributed storage network based on IPFS technology
• Arweave: Provides permanent storage solutions

Hash Rate:

• Render Network: provides Decentralization GPU rendering services
• io.net: A complete product architecture for efficient collaboration of distributed GPUs
• PinGo: AI and DePIN projects on the TON network, addressing the issue of idle computing power resources.

Wireless Network

Including wireless networks such as 5G, WiFi, Bluetooth, LoRaWAN, etc:

• Pollen Mobile: Building a 5G network using decentralized base stations
• Wicrypt: Users can purchase dedicated devices to contribute WiFi and earn tokens.
• Helium: Providing communication services for IoT devices through LoRaWAN routers

Sensor

Mainly monitor and capture data on the environment, geographic location, health, etc.

• WiHi: A weather data sharing platform connecting various entities
• HiveMapper: Collect high-resolution map data through vehicle-mounted cameras

Energy

Decentralization through energy networks enables users to directly utilize excess energy:

• Starpower: Create a Decentralized Virtual Power Plant
• Powerpod: Create a Decentralization community charging station network
• Arkreen: Build renewable energy data sharing applications

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

Future Trends of DePIN

1. Integration with Web2 application scenarios: spanning multiple fields such as IoT, smart cities, energy sharing, and edge computing.

2. Lowering hardware barriers: transitioning from professional-grade equipment to consumer-grade products

3. Financialization: Tokenization of physical hardware, creating new on-chain financial scenarios

4. DePIN and AI Mutual Nourishment: DePIN provides computing power, models, data, and other resources for AI, while AI enhances the efficiency of DePIN.

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

The Challenges of Scaling DePIN

1. The technical implementation is complex and has high requirements for all participants.

2. The market acceptance is still unclear.

3. The profitability model has uncertainty.

4. Possible regulatory intervention

Factors for Assessing the Potential of DePIN Projects

1. Hardware:

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

2. Token Economics Design:

• BME and SFA models
• Token Empowerment Mechanism
• Staking Mechanism
• Liquidity Management

![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 the infrastructure of Web3+ token economy, integrating global idle resources to solve the issues of resource monopoly and inefficiency under traditional centralized models.

Despite the immense potential of DePIN, it still faces challenges in technology, services, market acceptance, and regulation. DePIN relies on the flywheel effect and requires accumulation before it can take off; it will not become a silent narrative.

![The Rising Narrative: A Peek into the Present and Future of DePIN])https://img-cdn.gateio.im/webp-social/moments-dd126d3536c461596c7c14b23b2b7e1a.webp(