According to a Sept. 5 report by MV Global, decentralized physical infrastructure networks (DePINs) will be Web3’s “next big use case,” with the potential to onboard “a significant number of new users to the crypto space.”
The Role of DePINs in Web3
DePINs are blockchain protocols aimed at decentralizing real-world infrastructure and systems, including communications networks, data warehouses, energy markets, and more. According to MV Global, the ecosystem currently comprises upward of 1,000 projects and represents more than $50 billion in aggregate market capitalization.
Examples and Projects of DePINs
Connectivity protocols—such as Helium, which focuses on mobile networks—are displacing “enormously expensive” legacy infrastructure by crowdsourcing capital expenditures. The report said emerging projects to watch include Destra.network, Chirp, and Andrena. Sensor networks—such as Dimo, Hivemapper, and Geodnet—operate devices in physical spaces and capture valuable data. The report said emerging DePIN use cases include decentralized energy storage solutions and marketplaces, such as Daylight, EC3, and Entheos.
The Future of DePINs
The market for decentralized data storage and compute protocols, including incumbent players like Filecoin and Arweave, is on track to hit $128 billion by 2028, fueled by demand from artificial intelligence (AI) applications. The MV Global report also noted that DePIN-specific blockchains like Peaq and IoTeX are emerging to meet DePIN projects’ specific needs.
The growth in connectivity, sensors, and emerging primitives like energy networks highlights the tangible impact DePINs can have on real-world infrastructure.
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