DePIN Crypto Project: DePIN stands for Decentralized Physical Infrastructure Networks and in the last few days, the term DePIN has been making waves in the cryptocurrency landscape. However, DePIN is an innovative sector within the cryptocurrency world that is continuously gaining popularity. These networks use blockchain and token rewards to build real-world physical infrastructure like roads, energy systems, and wireless connections.
In this article, we’ll get to know about the concept of DePIN, and operational mechanics, and shed light on important DePIN crypto projects to keep an eye on.
What Does DePIN Mean?
Picture a world where the infrastructure we rely on every day, like the internet, data storage, and even energy grids, are built and managed by a network of people instead of big companies. That’s the core idea behind DePIN – Decentralized Physical Infrastructure Networks.
DePIN uses blockchain technology and the same system that powers cryptocurrencies like Bitcoin, Ethereum, Solana, or others to create these decentralized networks. However, blockchain allows secure, transparent, and community-driven management of physical infrastructure.
Web3 physical infrastructure needs a name!
Often referred to as Proof of Physical Work (PoPw), Token Incentivized Physical Networks (TIPIN), EdgeFi, or Decentralized Physical Infrastructure Networks (DePIN), crypto has yet to reach a consensus.
Vote below, or add a suggestion⬇️
— Messari (@MessariCrypto) November 5, 2022
How Does DePIN Work?
In simpler terms, DePIN links physical places with the blockchain. Here’s how it works – there’s a physical place owned by a company, a middleman that connects this place to the blockchain, and a public record that handles payments for this connection. Let’s understand this in detail-
Physical Infrastructure: The physical stuff that a private company manages could be anything like sensors, routers, or solar panels. The companies might already have these things before joining the DePIN crypto project. It’s like a blockchain network where people use their computers to help run it. In DePIN, many private companies can share their physical stuff.
Middleware: The middleware helps to connect the blockchain with the physical stuff. It’s like a decentralized system that picks up data from the real world and sends it to a blockchain application. The middleware does the same thing. It collects data from private facilities and sends it to the DePI Network.
Blockchain System: The middleware sends data to the blockchain, which acts like a manager, and payment system for both providers and users. By using the data from the middleware, blockchain decides how to distribute resources among the providers and calculates rewards for their activities. Rewards are paid in cryptocurrencies and blockchain handles all these rewards as well as payments for users.
What are the Different DePIN Categories?
DePIN is divided into two main categories-
Physical Resource Networks (PRN)
These are networks where people can share physical resources like internet connections, batteries, and transportation. The services they offer are usually tied to specific locations and can’t be moved anywhere easily.
Digital Resource Networks (DRN)
These networks involve sharing digital resources like computer processing power, internet bandwidth, and storage space. These resources aren’t tied to specific locations and can be used anywhere.
Top 5 DePIN Crypto Projects List
Here are the top 5 DePIN crypto projects that hold immense potential, that you are familiar with the basics of DePIN –
Helium (HNT Token)
Helium is creating a worldwide network of internet hotspots using regular devices. You can join in by setting up a Helium hotspot, and in return, you earn HNT tokens for offering internet coverage. It’s like sharing your Wi-Fi, but in this case, you earn digital tokens for helping people connect to the internet.
If we look at the HNT token it is currently looking bullish and as it comes under DePIN in the coming days we may see a massive price surge in the HNT token. However, Investors are continuously active in accumulating HNT tokens which is a positive sign for the long run.
Filecoin (FIL Token)
Filecoin is another DePIN crypto project that provides a decentralized option to big cloud storage companies. Here, people can rent their extra storage space and get FIL tokens in return. Likewise, those who need secure data storage can pay for it on this platform. It’s like renting out your extra room for money, but instead, it’s digital storage space.
File coin is another major DePIN crypto project and it has a huge potential to 10x in the coming day. However, currently, FIL tokens are trading near $9.5, and according to the expert technical analysis if FIL tokens on a daily time frame close above $11 then in the coming days we may see a price surge initially of $27, $122, and then $240 level.
Render (RNDR Token)
Render operates as a network of strong computers used for tasks like 3D animation and video editing. It allows users to use this platform for their projects and gain RNDR tokens in return. These tokens act as rewards for users who share their own GPU resources.
Render token is also an AI token and it has the potential to surge massively in the coming days and you can add this to your cryptocurrency wallet. However, it is currently listed on major cryptocurrency exchanges like Binance, OKX, Bybit, and others and currently trading near $7.
Akash Network (AKN Token)
Akash is like a middleman for cloud computing. It helps businesses to find people who have extra computer power that they are not using. Let’s say a company needs more computing power for their online stuff, like storing data or running programs. Akash helps them find people who can rent their spare computer power. People who rent their computer power are rewarded with AKN tokens in return.
Akash Network’s AKN token is also an AI token and in the last 1 year, AKN holders experienced massive gains. However, it has the potential to give 10X in the coming days
Theta Network (THETA Token)
Theta Network is making a video streaming platform. People watching videos can help in making the streaming better by sharing their internet connection. These people earn THETA tokens, like digital rewards for doing so.
Theta Network’s THETA token in 2024, has gained a huge price surge. Currently THETA token is trading near $2.9 and it has the potential to hit $14 in 2024. Overall, the cryptocurrency market is bullish and this year there is a possibility that it may hit $14 level.
Bonus DePIN Projects-
eTukTuk (ETK Token)
eTukTuk is a project that wants to make transportation better in poor and developing countries. They use electric tuk-tuks, which are small vehicles like taxis. People can help by setting up charging points for these tuk-tuks and they get rewarded with ETK tokens. Moreover, if someone owns an eTukTuk, they can rent it to others, and earn ETK tokens.
Hivemapper (HIVE Token)
Hivemapper is a huge community of Web 3 members who use hot air balloons and drones to take pictures from above. These pictures help make maps and find information about different places. Anyone can join this team to take pictures and earn HIVE tokens. These tokens are given for sharing the pictures and adding them to the collection so that everyone can use them.
Why DePIN is Important in Crypto?
DePIN is important as it holds the potential to revolutionize the Web 3 landscape by offering lots of services and the way it builds and manages physical infrastructure. DePIN offers several advantages-
- Increased Efficiency- Decentralized networks can be more efficient than traditional centralized networks.
- Lower Costs- By removing middlemen, DePIN can offer lower costs for services like data storage, computing power, and others.
- Greater Accessibility- DePINs can make essential infrastructure like the internet and energy more accessible to people around the world.
- Community Ownership- DePINs empower communities to have a say in how their infrastructure is managed.
What is DePIN’s Future?
The DePIN space is still young, but it has the potential to become a major force in future technology as well as in the Web 3 landscape. As more projects are developing and gaining popularity, we can expect DePIN to become an integral part of our daily lives.
While there will be bumps along the road, DePIN has the capability to create a more open, efficient, and community-driven infrastructure and it is something worth keeping an eye on. However, as it is still an emerging field, do your own research before investing in any DePIN project.
Conclusion
DePIN is a revolutionary concept in today’s world and it offers vast possibilities for the coming times. From secure data storage powered by your neighbor’s computer to community-managed energy grids fueled by renewable resources, there are a number of possibilities. However, it is a new field, so it becomes important to be vigilant about investing in it.
Frequently Asked Questions (FAQs)
What are DePIN projects?
DePIN is a blockchain protocol used to manage physical infrastructure using different blockchain technologies and in a decentralized way. DePIN covers sectors like data storage, wireless connectivity, computing, energy, and even data collection.
Where can I buy DePIN coins?
If you are interested in buying DePIN coins, you can get these coins on top cryptocurrency exchanges like Binance, OKX, Bybit, and BitMEX. However, there are many of the best DePIN coins with 10X potential, to know these tokens move into the first part of our article.
What is the best Depin crypto?
The popularity of DePIN crypto is continuously surging and it also looks like DePIN in 2024 experience a massive price surge. However, some best DePIN crypto are Filecoin, Render, Akash Network, eTukTuk, and Theta Network. As mentioned all these tokens have a high potential to explode in 2024, but before investment make your own decision too like research and chart analysis.
