Decentralised physical infrastructure networks, or DePINs, are the latest stage in the evolution of blockchain technology. With the integration of the digital economy with the real world, DePIN tokens are already valued in the tens of billions of dollars, and the very concept of combining blockchain and physical infrastructure creates a fundamentally new reality. DePIN promises to fundamentally change the way we interact with the world around us.

This article will help you understand what DePIN is, how it works in practice, what its benefits are, and which projects are already setting trends in this rapidly evolving field.

What is DePIN?

DePINs are decentralised networks that integrate physical infrastructure with blockchain technology. The main idea is to put the management of resources in the hands of users, allowing individuals and organisations to participate in the creation, management and operation of infrastructure — from Internet connectivity to cloud computing. In this way, DePIN breaks the monopoly of large corporations and gives users direct access to resources.

DePIN is based on smart contracts and tokenisation. Network participants can not only access services, but also contribute their resources and earn money. For example, in data networks such as Helium, users set up their own nodes that provide access to the Internet and are rewarded in cryptocurrency. This creates incentives to expand the network and improve the quality of coverage.

In addition, DePIN is developing a pay-as-you-go model that allows users to pay only for the resources they actually use, while smart contracts ensure transparency and automation of processes.

Decentralised physical infrastructure networks in action

DePIN technologies are already finding widespread applications in the real world. For example, the Render Network, a decentralised 3D rendering platform, pools users' computing power to perform complex tasks such as graphics and animation processing. This significantly reduces rendering costs by providing access to a powerful computing network without the need for large data centres. The system works on a resource-sharing basis, making it cost-effective and sustainable.

Another example is Arweave, a long-term data storage platform. Information on this network is stored forever, distributed across thousands of nodes, making it immutable and protected from loss. Providing users with guarantees of security and transparency, Arweave is used to create secure archives and databases and to preserve valuable content.

These examples are just a small part of how DePIN technologies are beginning to change our reality. Their potential continues to grow, opening up new opportunities for decentralised solutions in a wide range of fields.

Why is DePIN the future of blockchain?

1. Security and efficiency.

DePIN networks offer high security through the use of blockchain protocols. Their distributed structure makes them less vulnerable to attack, and smart contracts minimise human error.

2. Transparency and traceability.

Smart contracts record every transaction, making all transactions completely transparent. This allows for real-time tracking of data flows, which is particularly important in the context of distribution and efficient use of resources.

3. Democratisation of resources.

With DePIN, users can not only consume resources, but also share them. This model opens up access to infrastructure in remote areas where traditional companies are unwilling to operate.

4. Economic empowerment.

DePIN creates new markets for small businesses and individual entrepreneurs by allowing them to monetise their resources. This could include the rental of computing power, data storage or even the extension of network bandwidth.

DePIN projects that set trends

- Helium (HNT) provides a decentralised network for Internet of Things (IoT) devices, allowing users to create coverage to connect these devices. Network participants receive tokens for providing connectivity and infrastructure support, incentivising network development and helping to improve wireless connectivity in different regions.

- Render (RNDR) is a decentralised computing power sharing platform focused on 3D rendering and complex graphics processing. Users can rent out their computing power and those who need to render get access to a powerful network without having to build expensive data centres.

- Filecoin (FIL) is a decentralised storage network that allows users to rent out free space on their devices. Unlike centralised services, Filecoin guarantees high levels of data security and availability, and rewards participants with tokens for providing space and processing data, making the platform attractive to all participants.

- The Graph (GRT) is a protocol for indexing data from different blockchains that greatly accelerates the process of searching and accessing information for decentralised applications (dApps). The Graph helps developers optimise their applications by improving performance and user interaction, and supports over 20 blockchains, including Ethereum and Polkadot.

- Arweave (AR) provides a decentralised platform for long-term data storage using a unique 'pay once and for all' model. This means that users only pay once for the service, after which their data is stored on the platform indefinitely.

- The Theta Network (THETA) is a decentralised video streaming platform where users can monetise their excess internet resources such as bandwidth and computing power. It allows creators and viewers to earn rewards for participating in the network, facilitating the creation of affordable, high-quality video content.

The future of decentralised physical infrastructure networks

Despite the promise of DePIN, there are a number of challenges that need to be overcome in order to achieve mass adoption of the technology. One of the main obstacles is the need to standardise protocols to enable interoperability between different systems and networks. Scalability issues also need to be addressed, as current networks are not always able to cope effectively with increasing numbers of users and data volumes.

Nevertheless, the benefits of DePIN are clear. By democratising infrastructure and creating new revenue models, it opens up opportunities for a wide range of users and organisations. In the future, DePIN projects will have a significant impact on the economy by improving access to resources, driving innovation and attracting investors and developers interested in new opportunities.

DePIN technologies are not just a trend, but an important step in creating a decentralised economy where physical resources are available to all. Their implementation opens up unprecedented opportunities for users and businesses.