Understanding DePIN and Introducing Physical Infrastructure to Blockchain
Decentralized physical infrastructure networks are gradually becoming famous block applications. This is how they function.
Decentralized physical infrastructure networks (DePIN) have become an increasingly famous application of decentralized and blockchain technologies. In other words, it entails utilizing blockchain to manage and maintain decentralized networks of physical hardware, such as wireless infrastructure, sensors, and energy grids.
By exploiting blockchain technology and crypto tokenomics to prompt and harmonize the management of peer-to-peer (P2P) hardware infrastructure networks, DePIN is already being utilized to preserve and bootstrap actual-world services. This is how it functions.
Definition of DePIN
DePIN utilizes crypto rewards to prompt participation in physical infrastructure networks, allowing them to be developed from the ‘ground up’ instead of the top down. Establishing and running physical infrastructure networks is costly and complicated. This is why, historically, it has customarily been executed by governments or properly established firms with significant amounts of capital.
People use their hardware or specialized hardware to participate in DePIN networks. This may entail hard drives, wireless network nodes, and in-car tracking gadgets.
Filecoin: A DePIN pioneer
InterPlanetary File System (IPFS) was established in 2009 and functions like a library spread out over a whole city. It stores copies of books, which in this case are digital files, in several locations. When a person wants to access a file, IPFS locates and delivers the closest copy, guaranteeing reliable and quick access.
Filecoin was unveiled in 2014 and builds on the idea of the InterPlanetary File System, but it also includes an incentive layer. It is similar to offering friends a small thank you or coffee each time they aid in retrieving a favorite book. Individuals with additional hard drive storage space can lease it out and receive Filecoin to host and serve content.
DePIN decentralized storage networks like Filecoin ensure the accessibility of digital assets and the information linked to them, such as a nonfungible token’s image or transaction records. The availability is not affected by geographical limits or server status. Additionally, DePIN maintains the integrity of digital assets. Due to the existence of several copies, tampering with the information becomes quite tricky. A person can always confirm an asset’s validity via its decentralized copies.
The use of DePIN also enhances efficacy because data retrieval from the most available or closest node minimizes the resources and time required to access digital information.
Illustrations of DePIN
Besides Filecoin, several other examples of DePIN projects utilize tokenization to enhance participation in a different type of physical infrastructure network. Examples of these projects entail:
Render: This decentralized graphic processing unit rendering platform enables users to contribute their PC graphics cards’ unutilized power to render visual effects and motion graphics.
Arweave: This decentralized file storage service enables users to share their available computer disk space with those who require storage capacity.
Helium: This decentralized wireless Internet of Things (IoT) utilizes a distributed network of hotspots rewarded for offering wireless coverage.
Hivemapper: The mapping service rewards users for snapping images of the roads on which they drive using a specifically designed dashcam.
Digital Infrastructure for Moving Objects (DIMO): This network allows car owners to utilize and monetize information acquired from their vehicles.
PowerPod: This shared EV charging network enables private charger owners to share them with other drivers and obtain rewards in return.
DePIN’s Future
DePIN vows to boost the hardware-founded networks’ reach and resilience. By permitting effective resource allocation via reward and incentive mechanisms, they can aid in bootstrapping new hardware networks without needing centralized players’ resources.
Nevertheless, hurdles still exist. DePIN networks have not yet faced serious probes from regulators. For instance, they might be compelled to reveal who is responsible in case a decentralized file storage service is utilized to host illicit content. Further, scalability and interoperability are other possible challenges.
