DePIN, a new term in the Web3 field, emerged at the end of 2023, attempting to capture market attention in 2024.
The concept, translated as "decentralized physical infrastructure network," is actually not unfamiliar to you, such as the decentralized storage project Filecoin, which belongs to this field. However, when it was popular, DePIN had not yet been refined by the encrypted asset research institution Messari.
In fact, even when Messari first proposed the DePIN concept at the end of 2022, the discussion about it only lasted for about a month.
It wasn't until December 2023, when the mobile-focused project Helium (MOBLE) and the automotive-focused project Hivemapper (HONEY) experienced a surge in token prices in the market, that the investment community in the encrypted asset market was stimulated, and the DePIN concept finally gained popularity. The application scenarios also became more diverse compared to the previously most well-known "storage" market.
DePIN project overview (image from Messari)
Currently, the estimated valuation of the DePIN track is approximately $9 billion. According to Messari's estimation, by 2028, this track is expected to grow to a scale of $35 trillion.
In simple terms, DePIN uses tokens to incentivize individuals to share network or hardware resources, including computing power, wireless networks (WiFi), servers, sensors, blockchain node devices, and AI-related resources that have been hot for a year.
Compared to traditional centralized facilities, DePIN emphasizes the following advantages:
- Breaking the limitations brought by the monopoly of current information and communication technology infrastructure
- Allowing users to share the costs of capital, assets, and labor for common goals, reducing management expenses through blockchain ledgers, and achieving profit sharing through token incentives
- Decentralized distributed networks are more resilient, reducing the risk of single point of failure
- In an open, unauthorized global ecosystem, the potential speed is an order of magnitude higher than that of centralized systems
Currently, Ethereum is the main blockchain network deployed by the DePIN project, while its competitor Solana network is beginning to show its adaptability in the DePIN project. Both new and old players in the market are gathering, with Filecoin and Theta Network being familiar faces in the industry, while Helium and Hivemapper are making inroads into the top sequence.
This article will categorize specific scenarios to help you understand what DePIN is and where the opportunities lie.
Storage
Filecoin (FIL)
Filecoin is a peer-to-peer network for storing files, with built-in economic incentives and cryptographic technology to ensure reliable long-term storage of files. Its architecture is based on the IPFS protocol.
On the Filecoin network, users pay to store files in distributed shared space. Filecoin has multiple use cases, including Web2 data, NFTs, Web3 game assets, etc., and is more economical, reliable, and diverse than traditional centralized cloud storage.
- Total supply of FIL: 1,960,979,373 FIL
- Circulating supply: 496,332,000 FIL
- Current price: $6.22
- All-time high: $237.24
- All-time low: $1.83
Theta Network (THETA)
Theta Network focuses on blockchain networks for streaming content storage. It was initially created on Ethereum and later built its native blockchain network.
On Theta Network, video and media platforms can reduce content distribution costs. When end users share their storage space or bandwidth from personal computers, mobile devices, smart TVs, or IoT devices, they can receive network rewards. Theta Network supports Turing-complete smart contracts and is fully compatible with Ethereum. Use cases include NFTs, DApp applications, and decentralized autonomous organizations (DAOs).
- Total supply of THETA: 1,000,000,000
- Circulating supply: 1,000,000,000
- Current price: $1.13
- All-time high: $15.90
- All-time low: $0.03977
Arweave (AR)
Arweave aims to permanently store files through a distributed computing network. It uses a blockchain-like new data structure and seeks to disrupt the market dominated by existing storage giants such as Google, Amazon, and Microsoft.
It has many similarities with Filecoin. Arweave uses its native token AR to support its services. When people spend AR to store data, network nodes (miners) will receive AR income. During on-chain transactions, AR will be injected into a donation fund, which slowly releases rewards indefinitely through technology. Arweave ensures the infinity of storage through this mechanism.
- Total supply of AR: 65,454,185 AR
- Circulating supply: 65,454,185 AR
- Current price: $9.40
- All-time high: $90.94
- All-time low: $0.4854
Computing
Render Network (RNDR)
Render Network is the first decentralized GPU rendering platform built on the Ethereum blockchain. It allows GPU-based complex rendering tasks to be processed and distributed on a peer-to-peer network, simplifying the transaction of rendering 3D environments, models, and objects for end users.
Node operators with idle computing power can contribute their unused GPUs to the entire network and earn RNDR by processing users' rendering requests.
- Total supply of RNDR: 530,962,615
- Circulating supply: 371,908,453
- Current price: $4.02
- All-time high: $8.76
- All-time low: $0.03676
Akash (AKT)
Akash is a proof-of-stake (PoS) blockchain developed on the Cosmos Hub and is an open-source supercloud. It allows users to securely and efficiently buy and sell computing resources, designed for public affairs.
With Akash Cloud, users can deploy infrastructure and sell their unused cloud resources to others. Developers can purchase cloud resources to deploy and run applications.
- Total supply of AKT: 224,981,645
- Circulating supply: 224,981,645
- Current price: $2.93
- All-time high: $8.08
- All-time low: $0.1672
Wireless Network
Helium (HNT, IOT, MOBILE)
The Helium Network is a decentralized, blockchain-based wireless network infrastructure that allows individuals and organizations to share wireless networks and receive incentives. Currently, Helium has expanded from its own Layer 1 blockchain to Solana. The main token driving the network is HNT, while IOT and MOBILE tokens are used to support LoRaWAN and 5G networks, respectively.
The hotspots in Helium enable people to own and operate a wireless network that supports various Internet of Things (IoT) devices, including smart pet collars, delivery systems, smart bicycles and electric vehicles, tracking devices, cooling systems, smart lighting systems, and more.
- Total supply of MOBILE: 80.56 billion
- Circulating supply: 80.56 billion
- Current price: $0.002844
- All-time high: $0.007791
- All-time low: $0.0000704
Internet of Things
IoTeX (IOTX)
IoTeX is a Layer 1 blockchain network designed to provide security for interactions between Internet of Things (IoT) devices and users, aiming to help users securely access data.
Currently, the IoTeX ecosystem consists of a decentralized network governed by users, developers, and enterprises. IoTeX is driving real-world products to run on the blockchain network, such as blockchain-based cameras, supply chain optimization devices, etc. It claims to be fast, secure, and scalable, and is compatible with the Ethereum Virtual Machine (EVM).
- Total supply of IOTX: 9,441,378,959
- Circulating supply: 9,441,378,955
- Current price: $0.04564
- All-time high: $0.2611
- All-time low: $0.001239
Hivemapper (HONEY)
Hivemapper is a decentralized digital mapping network built on the Solana blockchain. It creates maps by supporting drivers to capture images with dedicated dashcams, and rewards image contributors with HONEY, similar to "mining" for images. Anyone can view the current status of the maps through a website called Hivemapper Explorer.
Hivemapper dashcam provides data for Web3 maps
- Total supply of HONEY: 6,200,807,534
- Circulating supply: 608,048,086
- Current price: $0.2024
- All-time high: $0.4315
- All-time low: $0.0085
New DePIN Applications
In addition to these DePIN projects, some new potential applications have emerged in the track, expanding to AI computing power and even energy. Their incentive programs and economic models are currently in development.
New applications in the DePIN track
As a user, if you have the resources that these DePIN projects need to share, you can try to contribute to them. However, you must carefully assess whether these projects provide a secure sharing environment and analyze whether the incentives have real value, such as whether the hardware of the project brand is worth investing in.
Don't forget, the "disaster" caused by several sharp declines in FIL in 2021-2022 still lingers in memory for Filecoin miners.
(Disclaimer: Readers are strictly advised to comply with local laws and regulations. This article does not represent any investment advice.)
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