- Crypto Pragmatist by M6 Labs
- Top 5 DePIN Projects – The Next Frontier in the Blockchain Revolution
Top 5 DePIN Projects – The Next Frontier in the Blockchain Revolution
Beyond the confines of digital domains, DePIN emerges as a game-changer, integrating blockchain technology with tangible, real-world applications.
Blockchain technology is slowly weaving its way into many traditional industries. Blockchain's value proposition lies in its ability to forge innovative economic models, reshaping how we perceive and distribute value.
One narrative that’s fast gaining traction as a potent use case for blockchain is that of DePIN. Beyond the confines of digital domains, DePIN emerges as a game-changer, integrating blockchain technology with tangible, real-world applications.
This article will explore DePIN in detail and highlight some of the most promising projects in this category. Let’s dive in.
What Is DePIN?
DePIN network flywheel. Credit: IoTEX
DePIN, or Decentralized Physical Infrastructure Networks, use blockchain and tokenized ecosystems to manage physical infrastructure in the real world. DePIN finds utility in areas such as wireless connectivity, energy, transport, etc.
DePIN is a prospective Internet of Things (IoT) evolution within Web3 ecosystems. In this decentralized IoT iteration, infrastructure ownership is a collaborative effort by users, device owners, and businesses.
DePIN leverages incentivization models to reward network participants and encourage crowdsourcing of infrastructure services. Blockchain technology supports DePIN by providing an immutable ledger built on permissionless and trustless smart contract environments.
The decentralized nature eliminates the reliance on centralized entities, fostering a more distributed participatory model.
This global initiative empowers individuals to cooperate in constructing, maintaining, and operating community-owned physical infrastructure.
According to Messari, DePIN’s current market has a valuation of around $2.2tn with an anticipated valuation of $3.5tn by 2028. Bringing only a fraction of this valuation on-chain will generate significant value for early adopters. The DePIN market cap is about $13bn, signifying a huge upside potential as more industries adopt tokenized infrastructure networks.
The Benefits of DePIN
Like any other innovative technology, DePIN introduces a set of benefits for network participants. Some benefits of DePIN include:
Since DePIN operates trustless and permissionless, it ensures unmatched efficiency. Smart contracts facilitate streamlined operations, reducing the need for intermediaries and providing more efficient and secure execution of infrastructure-related processes.
By crowdsourcing resources, DePIN enables networks to scale without increasing the capacity of each resource. This ensures seamless scalability as independent units within the system can scale in and out depending on demand. The unrestricted entry of new players renders the system infinitely scalable.
DePIN encourages community ownership and participation in decision-making and the management of infrastructure. This ensures that projects align with the community’s interests, fostering a sense of responsibility and ownership.
User-Centric Reward Systems
Participants in DePIN ecosystems benefit from monetization opportunities. Collaborative ownership structures allow users and businesses to generate revenue by contributing to the building, maintenance, and operation of community-owned infrastructure. This economic model redistributes value among stakeholders, promoting a more inclusive and financially rewarding system.
DePIN eliminates geographical barriers to entry for all interested network participants. As a result, they enable communities worldwide to collectively build, manage, and benefit from physical infrastructure projects.
Top 5 DePIN Projects
Many DePIN projects have developed innovative solutions to traditional infrastructure problems. Let’s explore a few promising DePIN projects:
Render(RNDR) is a decentralized GPU rendering platform. Users with idle GPU resources can connect them to the network to serve 3D artists and designers needing advanced GPU computing power. Render is tapping into a vast and highly lucrative market.
The need for high-definition 3D graphics is on the rise. This raises the demand for advanced rendering services. Render makes next-generation 3D rendering infrastructure widely available, increasing the computing power for such systems to scale.
Render’s current market cap is $1.41bn.
Theta Network(THETA) is a blockchain infrastructure for the video, media, and entertainment industries. Theta relies on a distributed user base contributing bandwidth and computing resources to run the network. Network participants are rewarded with the THETA token.
Theta users earn THETA for sharing videos with other users on the platform. Theta users are empowered with a global infrastructure focused on unrestricted and efficient video content and data delivery.
Theta is one of the leading players in an industry with so much growth potential in the coming years. Estimates project that the global video-streaming industry will grow by a compound annual growth rate (CAGR) of 21.5% from 2023 to 2030. Theta has developed the infrastructure to deliver end-user value within this rapidly growing market.
Theta’s current market cap is $1bn.
ATOR Protocol(ATOR) is building the largest global privacy routing system. ATOR’s mission is to enhance the scalability, reliability, and security of the Tor network, one of the world’s most popular anonymity networks.
The ATOR Protocol presents a system where operational Tor relays can earn ATOR tokens as compensation, determined by their collective valuable uptime using a Proof-of-Uptime mechanism. Additionally, it introduces the ATOR Router Hotspot, a portable device that permits users to connect their devices via WiFi and direct all internet traffic through Tor seamlessly, eliminating the need for scripting.
ATOR is gaining traction amidst the rapidly rising need for anonymity. ATOR also enjoys one of the strongest support from online crypto communities.
ATOR’s current market cap is $89mn.
Storj is a decentralized file storage platform powered by a network of decentralized computers called nodes. Nodes are distributed across the globe. Stork operates over 10,000 active nodes and boasts more than 6 Petabytes in storage capacity.
Nodes in the network trade computing resources for storing and transmitting data while simultaneously earning Storjcoin X.
Anyone can operate the Storj Protocol on their computer by leasing their bandwidth and hard drive in exchange for STORJ rewards. Storj’s decentralized storage services are secure and more cost-effective.
Storj’s focus on efficient data storage solutions positions it for massive adoption. Businesses and users around the world are always looking for secure storage solutions. Traditional technology fails to offer good security and data ownership standards because of its centralized architecture. Storj is on track to becoming one of the biggest, most highly scalable storage solutions.
The current market cap for Storj is $87m.
DIMO Network(DIMO) is an automotive IoT platform enabling drivers to accumulate and exchange vehicle data for DIMO tokens. The platform presently links over 30,000 vehicles. Revenue is generated through user-provided vehicle data and paid data API services.
Users are required to acquire specific hardware equipment. By connecting this hardware to the car and sharing driving data, users essentially earn tokens, transforming driving into a lucrative activity. DIMO actively promotes the idea of car owners sharing their driving data in return for DIMO tokens. The platform profits from the sale of such data.
Currently, automotive data is centralized among a few key players. This data is valuable for many reasons, including the training of autonomous vehicles. DIMO’s redistribution and monetization of data ownership generate value for end-users, and this will stimulate the growth of the platform in the coming years.
DIMO's current market cap is $96 million.
Other DePIN Projects
DePIN is a fast-evolving sector, with many new players seeking to develop decentralized solutions for real-world infrastructure networks. Other DePIN projects to keep on your radar include:
Akash Network(AKT): Open-source Supercloud that lets users buy and sell computing resources. MC: $645mn.
IoTex(IOTX): Decentralized platform for connecting smart devices to blockchain. MC: $431mn.
Constellation Network(DAG): L0 platform allowing businesses to develop blockchains with infinite scalability, full interoperability, and zero fees. MC: $73mn.
Cudos(CUDOS): Decentralized cloud computing layer 1 blockchain. MC: $75mn.
Rowan Energy(RWN): World’s first community-supported green energy blockchain. MC: $31mn.
DePIN continues to ignite significant waves in the blockchain sphere. One thing we can be sure about is DePIN’s increased adoption with the growing demand for user-centric economic models. Many web3 experts have hailed DePIN as one of the best and biggest use cases for blockchain technology.
Looking ahead, more and more people will be attracted by the reward-based systems powered by DePIN. This, together with DePIN’s efficiency, security, and cost reduction, will lead to even more adoption. Traditional infrastructure networks are not competitive enough in the face of DePIN, which will drive more users toward DePIN. From where we stand, DePIN remains one of the most promising crypto narratives for 2024 and beyond.