The Rise of DePIN: Transforming the Real-world Infrastructure
Over the past years, we have gone through the explosion of Metaverse, DeFi, NFT,... eras, and in 2024, the next craze and subsequent wave will go by the name DePIN
The DePIN Narrative
What is DePIN?
We are in crypto - the home of esoteric acronyms, and DePIN is short for Decentralized Physical Infrastructure Networks. DePIN refers to infrastructure projects harnessing blockchain technology and crypto economics to motivate individuals to allocate their capital or underutilized resources towards creating a more transparent, decentralized, and verifiable infrastructure network. These projects can be broadly categorized into networks of physical or digital resources, each encompassing various sub-sectors. Regardless of their focus, these projects typically operate under similar operating models, emphasizing collective ownership and prioritizing distributed systems over centralized market structures.
Network structures of centralized system (left) and decentralized system (right).
The DePIN Sector Map
According to Massari, the ecosystem map of DePIN is categorized into two distinct types based on the hardware and resources involved, as well as the nature of the goods and services offered by the network: Physical Resource Networks (PRNs) and Digital Resource Networks (DRNs). Regardless of these nuances, what remains evident is the sector’s continued growth and expansion.
(Source: Messari)
As illustrated in the ecosystem map above, DePIN is a broad field made up of several sectors and sub-sectors. Each sector will play a different role in enabling the decentralization of the network infrastructure and powering different use cases.
"DePIN" can be used in different ways
DePIN is a term used to describe decentralized applications that use tokens to incentivize people to provide services via real-world physical infrastructure/machines/devices.
DePIN is a business model that flips the traditional model by allowing organizations to bootstrap their way to scale instead of relying on huge amounts of upfront capital. Bottom-up. Grassroots.
DePIN is an industry focused on providing real-world services to people via real-world vehicles, robots, and devices, via the open, community-governed #Web3.
DePIN is a global infrastructure revolution, governed by the many, not the few, enabling a new era of economic participation in the tangible world we all share.
DePIN is a movement in which every person can contribute to the community they're part of and earn for the services they provide -- it is a physical embodiment of the paradigm shift from corporate-controlled Web2 to community-owned Web3.
Summary
DePIN is not just a trend in the crypto world but a step forward in integrating blockchain into our daily lives. With its potential yet to be fully tapped, the future of DePIN looks bright, opening up new opportunities in the crypto world. And we are proud to be one of the pioneers, riding on the “Wavefy” of the DePIN era.
Something BIG is Coming!
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