A decentralized physical infrastructure network (DePIN) is one of the emerging trends and use cases of blockchain technology in 2024.

What is DePIN?

We first talk about Real World Assets (RWAs), which involve tokenizing liquid assets that exist in the physical world, such as real estate, luxury items, commodities, and government treasuries.

Read: Real World Assets Tokenization – RWA Crypto Tokens With Potential Airdrops

DePINs are blockchain-based projects that utilize the technology to run and maintain physical infrastructures, such as energy grids, mobile networks, telecommunications, sensors, cloud networks, and file-sharing systems. Unlike RWAs, these infrastructures are not tokenized. Instead, blockchain and cryptocurrencies incentivize those who run DePINs, which are typically peer-to-peer networks.

According to some developers, DePINs are advantageous compared to traditional entities because centralized entities can be costly. This can lead to higher consumer costs, potential corruption and capitalism, and decreased innovation due to a lack of competition.

How DePin Started

In 2009, the InterPlanetary File System (IPFS) was launched. This library-like infrastructure aims to keep copies of files in multiple locations, ensuring fast and reliable access for users.

In 2014, Filecoin was launched, building on the IPFS concept with an incentive program. Filecoin allows miners with extra hard drive storage to rent it out, earning $FIL, Filecoin’s native token, for their services. This made Filecoin the first DePIN project.

Pros and Cons of DePIN

Pros:

• Decentralization avoids the disadvantages of a central entity, such as service price manipulation due to monopoly.
• Services are cheaper because infrastructures are maintained by participants, similar to node validators in proof-of-stake blockchains.
• Reduced potential downtimes and cyber-attacks, with each transaction recorded permanently.

Cons:

• Significant funds are needed to build and maintain a DePIN, including participant incentives.
• Developers must ensure that user fees cover the costs of incentivizing network participants.

DePIN Ecosystem: Potential Airdrops

Hivemapper

Similar to Google Maps, Hivemapper (https://hivemapper.com/) is a web mapping platform. 

Users can become contributors by creating an account and connecting their Phantom wallet. Contributors use dashcams to capture images, provide historical data, or share information such as road closures. In exchange, contributors earn $HONEY, which can be traded for Hivemapper’s map data.

Helium

Helium (https://www.helium.com/) is a decentralized wireless network using a proof-of-coverage mechanism. Miners provide network coverage and submit proofs to the Helium network, earning tokens for their efforts. The Helium Wireless protocol facilitates bi-directional data transfer between devices and the Internet without a central coordinator.

DIMO

DIMO (https://dimo.zone/) is an open platform that makes cars smart and programmable. It allows cars produced from 2008 to the present to access apps and services, enabling owners to earn money from their car data. Potential applications include AI car mechanics, smart parking, automated DMVs, and global digital marketplaces.

Nodle

Nodle (https://www.nodle.com/) uses smartphones as nodes to create a digital trust network for social good. It verifies real-world data through IoT validation and attestation of photos and videos. The Nodle Chain is energy-efficient, secure, and built on Polkadot.

FRYS

FRYS (https://www.fryfoundation.com/) aims to be a “decentralized network of decentralized networks” across various industries. It currently operates dVPN and dGNSS networks and plans to expand to areas such as air quality, water quality, and weather stations, promoting interoperability and collaboration.

This article is published on BitPinas: DePIN Ecosystem and Guide Potential Airdrop

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• Source: https://bitpinas.com/learn-how-to-guides/depin-ecosystem-list/