Blockchain technologies are finding new applications in physical infrastructure through the concept of DePIN, which integrates decentralized solutions into real-world objects.
What is DePIN
DePIN stands for Decentralized Physical Infrastructure Networks. This refers to a scheme that applies blockchain to the integration of physical infrastructure objects. This allows for creating autonomous, transparent, and tamper-proof databases, typically automated with smart contracts.
Examples of DePIN Projects
The Filecoin project was the first to implement DePIN concepts, offering decentralized file storage. Other notable projects include Helium for internet connectivity through a gadget network and Render for sharing computing power. By the end of 2023, over 650 such organizations were registered with a market capitalization exceeding $20 billion.
Cryptocurrencies and the Future of DePIN
DePIN projects often have their own cryptocurrency to reward users and pay for services. Investors view such coins as stocks. Advantages of DePIN include information protection and transparency, but it also faces challenges such as cryptocurrency market volatility and difficulties for beginners. The DePIN segment is expected to continue growing, as evidenced by the observed dynamics.
DePIN plays a key role in democratizing access to services through technological integration and has proven its economic efficiency.
