Decentralized Physical Infrastructure Networks (DePIN) represent an innovative sector within the blockchain and crypto universe, focusing on the development and maintenance of real-world infrastructure in a decentralized manner. DePIN encompasses a variety of projects that leverage blockchain technology and token incentives to build and operate physical infrastructure networks. These networks are diverse, ranging from telecommunications and energy to mobility and storage solutions.
The key feature of DePINs is their decentralized nature, which allows for crowdsourcing of physical infrastructure. This approach facilitates rapid scaling at a lower cost compared to traditional centralized models. Community members, rather than corporations, own and manage the hardware making up these networks, aligning interests and fostering growth. DePINs also promote open governance and are resistant to censorship, being permissionless and open to all.
The sector is divided into Physical Resource Networks (PRNs) and Digital Resource Networks (DRNs). PRNs focus on location-dependent hardware for real-world, non-fungible goods and services like mobility and energy. DRNs, on the other hand, handle digital resources like storage and bandwidth.
DePINs have the potential to disrupt and innovate within several industries. They operate at lower capital and operating costs, leverage blockchain for secure peer-to-peer payments, and offer direct access to Web3 tools and DeFi services. Moreover, their reduced entry barriers encourage innovation across various sectors.
Projects within the DePIN sector are gaining momentum, with an estimated total addressable market of around $2.2 trillion, potentially reaching $3.5 trillion by 2028. This growth indicates the significant impact DePINs could have in reshaping how physical infrastructure networks are built and maintained in the future.
Top 8 DePIN Crypto Coins
Here’s the list of top DePIN projects we are currently looking at (nothing here is financial advice!)
|Market Cap (USD)
|A decentralized blockchain network designed for Internet of Things (IoT) devices, using a unique proof-of-coverage consensus.
|A decentralized global mapping network rewarding contributors for collecting high-volume 4K street-level imagery using dashcams.
|Grass is a platform that allows users to earn passive income by sharing their unused network resources. Users can monetize their internet bandwidth by providing access to their internet view to companies and academic institutions. The system rewards users in Grass Points, which are redeemable for various forms of payment.
|A decentralized platform aiming to empower the open economics for machines, with an EVM-compatible blockchain and applications like Ucam and Pebble.
|A distributed platform for hosting decentralized applications built using Holochain, aiming to bridge the internet and DApps.
|The native utility token of Sia, a blockchain-based distributed, decentralized cloud storage platform.
|A decentralized cloud computing system offering blockchain-as-a-service (BaaS) and decentralized application (dApp) development.
|A decentralized blockchain data platform connecting blockchains with Web3 dApps, using a PoS consensus for scalability and data consistency.
Please note that the market capitalizations are based on the latest available data and may have changed since.
Where to buy DePIN crypto tokens?
MEXC and Gate.io are two notable cryptocurrency exchanges where you can buy a variety of digital assets, including those associated with DePIN (Decentralized Physical Infrastructure Networks). They offer the most crypto trading pairs out of top exchanges.
For both exchanges, you can use our VIP referral codes that will provide you with additional bonuses. Simply click on links to sing up.
MEXC was established in 2018 and has grown to serve over 10 million users in more than 170 countries. It offers a user-friendly interface that caters to both regular investors and sophisticated users, with a straightforward layout for regular investors and a more advanced trading interface for experienced traders.
MEXC exchange supports over 2,050 cryptocurrencies and more than 1,650 trading pairs, providing a broad range of options for traders.
Key features include multiple trading markets (spot, margin, futures, leveraged ETFs), staking opportunities, a native MX token offering various benefits, and robust security measures such as cold storage wallets and SSL encryption.
MEXC allows for quick crypto purchases with various payment methods, including debit/credit cards and third-party payment providers. It’s important to note that while MEXC doesn’t charge deposit fees, using third-party payment methods or credit cards for purchasing cryptocurrencies may incur fees.
The standard spot trading commission is 0.2% for both makers and takers. Futures fees start at 0.060% for takers, with zero fees for makers. Holding the native MX token can provide discounts on these fees.
MEXC takes the security of its customers’ funds seriously, employing 2FA, email and SMS verification, and storing user assets in cold storage.
Gate.io is a centralized cryptocurrency exchange offering a wide array of digital asset products and services, including spot and margin trading, perpetual futures, options, and NFTs. As of May 2023, Gate.io’s total exchange assets were reported to be $1.88 billion. The exchange is known for providing an intuitive and user-friendly platform, suitable for both new and expert traders. Key features include a simple and easy-to-use design, a variety of markets, and a range of trading options like spot trading and perpetual futures.
Gate.io supports more than 1,400 cryptocurrencies and offers USD stablecoin markets, Bitcoin markets, Ethereum markets, and Exchange token markets, among others. It also provides markets with tokens that undergo halving periods such as BTC. The exchange supports over 100 fiat currencies for buying cryptocurrencies, catering to a global user base.
In terms of fees, Gate.io offers zero transaction fees for all its customers, with no cap for the transaction amount. This applies to both market makers and quantitative teams who trade through the API interface. Withdrawal fees vary depending on the coin, and the deposit fee is zero for many digital currencies.
For payment methods, Gate.io allows users to purchase cryptocurrencies via third parties and its own Gate Connect channel. Users can purchase crypto using credit/debit cards and bank transfers. Additionally, Gate.io has a strict KYC+AML review mechanism and implements a t+1 withdrawal restriction to prevent illegal capital flows.
Future of Decentralized Physical Infrastracture
The future of Decentralized Physical Infrastructure (DePIN) appears to be a transformative and rapidly evolving landscape, with potential implications across various sectors and aspects of our daily lives.
Here are some key aspects and predictions about the future of DePIN:
- Expansion Across Industries: DePIN is poised to expand beyond traditional blockchain applications into diverse industries like telecommunications, energy, transportation, and storage. This broad application range indicates that DePIN could become a foundational element in the infrastructure of future smart cities and IoT ecosystems.
- Integration with IoT and Smart Devices: DePIN is expected to increasingly intertwine with the Internet of Things (IoT). By leveraging decentralized networks, IoT devices can operate more securely and efficiently, potentially leading to more innovative applications and use cases in smart home technology, healthcare, and industrial automation.
- Improvement in Scalability and Efficiency: DePIN projects aim to solve scalability challenges faced by traditional infrastructure. By crowdsourcing infrastructure and maintenance, these networks can potentially operate at a fraction of the cost and with greater efficiency than centralized models.
- Enhanced Security and Privacy: Decentralization inherently reduces the risk of single points of failure and central points of control, potentially leading to more secure and private infrastructure networks. This could be particularly important in sensitive areas like data storage and energy grids.
- Sustainable and Green Technology: There is a growing focus on leveraging DePIN for sustainable and green technology solutions. Decentralized energy grids, for example, could facilitate more efficient distribution and consumption of renewable energy.
- Community-Driven Models: DePIN projects often emphasize community ownership and governance. This could lead to more user-centric services and innovations, as community members have a direct stake in the development and success of the infrastructure.
- Economic Implications: The DePIN sector, with its potential to lower operational costs and democratize access to infrastructure, could have significant economic implications. It might enable new business models and revenue streams, especially for participants who contribute to the network.
- Potential for Global Connectivity: In the long term, DePIN could play a pivotal role in enhancing global connectivity, especially in underserved or remote areas. By decentralizing infrastructure, it may become feasible to extend essential services to regions that are currently difficult to reach.
In conclusion, the future of DePIN holds immense promise, but it also presents challenges that need to be addressed. Its success will depend on technological advancements, regulatory frameworks, and the ability of these networks to demonstrate practical, scalable solutions in the real world.
You can also read about RWA sector which is similar to DePIN – they are not the same, but there’s an overlap.
P.S. The above links are affiliate.