Tech
These are the DePIN projects to watch in 2024
The integration of blockchain technology with tangible real-world applications is becoming increasingly significant. In fact, Decentralized Physical Infrastructure Networks (DePIN) is a sector experiencing exponential growth. Approximately 650 new projects were launched, catapulting DePIN’s market capitalization to a whopping $20 billion and generating approximately $15 million in annualized on-chain revenue.
The growing interest in DePIN reflects the potential to revolutionize traditional systems by democratizing access to essential services and promoting community-led solutions.
DePIN’s promise to disrupt monopolies
DePIN is at the forefront of marrying the decentralized ethos of cryptocurrency with the infrastructure needs of the physical world. From Wi-Fi and transportation to data storage and energy, DePIN sets the stage for blockchain transparency, efficiency and transparency safety extend to the real world. This change aims to improve the utility of blockchain and offer users tangible benefits and rewards.
It is worth noting that this industry is currently controlled by three of the largest and most renowned technology companies in the world: Microsoft, Google and Amazon. As a result, building partnerships, developing business and generating organic demand may prove more challenging in this crypto space than others. Therefore, success largely depends on the ongoing trend towards greater censorship by Big Tech.
Still, Cryptographic infrastructure is expected to grow exponentially in regions where governments intensify restrictions on dissent and impose tougher controls on free speech. This scenario presents significant opportunities to serve gray market customers.
“DePIN will be one of the most important areas of cryptocurrency investment for the next decade. Storage solutions, decentralized wireless networks, and other hardware networks are critical to the long-term sustainability of the industry. They could also destroy an absolutely enormous set of monopolies. Legacy cloud infrastructure represents a $5 trillion global market capitalization industry,” Messari analysts say he wrote.
Indeed, the appeal of DePIN lies in its promise to decentralize the wealth and control associated with infrastructure development. Improve the abilities of Internet of Things (IoT) integrating blockchain and community-driven incentives. In essence, DePIN brings together the necessary computational and storage capabilities from various sources, making them readily available to developers and their applications.
Shann Holmberg, chief operating officer at Lunar Strategy, told BeInCrypto that such a framework promises to reduce operational costs, scale efficiently and offer a robust alternative to traditional infrastructure models.
“By decentralizing resources, it enables the widespread adoption of innovative technologies, even in remote or underdeveloped areas. This global reach allows users from all corners of the world to interact and benefit from decentralized technologies, promoting a more inclusive digital environment,” said Holmberg.
How DePIN works. Source: IoTeX
This approach is gaining traction among cryptocurrency investors who see it as a scalable solution to global infrastructure challenges. DePIN aims to transform public infrastructure into a more inclusive, efficient and participatory system by leveraging blockchain.
DePIN’s impact on Web3 is profound. It offers a decentralized model that alleviates bottlenecks and promotes a more reliable platform for decentralized applications (dApps). By improving resource availability and global accessibility, DePIN catalyzes the widespread adoption of innovative technologies, especially in disadvantaged regions.
“DePIN transforms traditional infrastructure systems by decentralizing control, moving it from large corporations to a community of individual contributors. Similar to the miners in a Work test network, each participant contributes resources and has a say in the system in proportion to their investment,” Holmberg added.
The best DePIN projects to keep an eye on
Developing effective incentive models, tackling extensive development, and competing with established Web2 giants can be challenging. However, the potential benefits of community control, fair pricing and incentives make a compelling argument for the transformative power of DePIN.
“Things like file storage, wireless access and cloud computing require a lot of capital expenditure and operational headaches, and it’s a non-trivial challenge to bring a hardware network all the way to feasibility. Tokens have proven effective in catalyzing the development of these networks as they coordinate large-scale decentralized hardware investments,” say Messari analysts underlined.
Indeed, DePIN projects like Rowan Energy are pioneering sustainable practices. Leverage blockchain for clean energy production and consumption in the energy sector. This innovative approach supports the global pursuit of net zero emissions and incentivizes the adoption of renewable energy through mechanisms such as NFT carbon offset certificates.
The wireless sector is also witnessing a revolution with projects such as Helium network. It aims to disrupt traditional connectivity models by rewarding providers with cryptocurrency. This model exemplifies how DePIN can offer equitable solutions in connectivity, marking a significant shift from centralized providers.
“Helium Network is challenging the dominance of large network providers. With an intelligent multi-token system, each token plays a crucial role in managing network resources and compensating providers. Users burn the HNT token to access connectivity services, and the MOBILE token is the lifeblood of Helium’s 5G project,” Holmberg explained.
In the meantime, decentralized storage networks Pleases Filecoin redefines data storage and cloud computing. By ensuring secure, efficient and affordable storage solutions, these projects highlight DePIN’s potential to challenge and possibly surpass traditional cloud services.
“Without data, an AI cannot learn. If data is compromised due to a single point of failure, or if the central data storage entity changes access rights or its pricing, an AI that depends on that storage entity will cease to exist. It’s an existential risk, which is why I advocate for AIs to use a decentralized storage solution,” Arthur Hayes, co-founder of BitMEX. She said.
To know more: Filecoin (FIL) Price Prediction 2024/2025/2030
Despite the challenges, DePIN projects signal a decisive step towards more democratic, efficient and sustainable infrastructure solutions. This transformational journey is about technological advancement and reimagining the foundational systems that support the digital and physical worlds.
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