Introduced in early 2023, DePIN has emerged as one of the leading narratives of 2024 within the crypto space. With over 1275 DePIN projects serving a wide range of use cases on blockchains and boasting a market cap of $59 billion, this topic has sparked widespread discussion and interest among crypto fanatics. But what exactly is DePIN? Why are investors considering top DePIN projects 2024 a dark horse of the crypto bull run? What are the upcoming DePIN projects trends in 2025 and beyond ready to transform the crypto space? This blog post focuses on answering these questions comprehensively.
DePIN is a concept within the blockchain and cryptocurrency space that focuses on the decentralization of physical infrastructure networks, such as IoT devices, sensors, renewable energy grids, and telecommunications infrastructure. This P2P network enables individuals to contribute to physical infrastructure and in return, earn rewards as per the DePIN protocol’s incentive mechanism.
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Imagine a ride-sharing service where anyone can contribute their own cars to the network, rather than a single company owning all the vehicles. Here’s how it would work with DePIN:
This is a DePIN because it uses people’s physical cars (the hardware) to create a shared internet service (the infrastructure). It’s decentralized because there’s no single company controlling everything.
If DePIN wasn’t around, the individual wouldn’t achieve the same level of flexibility and potentially lower costs for shared resources.
DePIN crypto projects can be categorized into six major areas:
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DePIN requires four essential components to function properly-
The DePIN Flywheel is a DePIN concept that describes the self-reinforcing cycle that drives the growth of the network. Here’s how it works-
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Daniel Andrade, Co-Founder of Hotspotty & DePIN Hub, states-
“DePIN could also drive the next wave of the sharing economy. Unlike platforms such as Uber and Airbnb, DePIN’s Sharing Economy 2.0 is characterized by decentralized ownership and control, offering a more equitable distribution of value.”
There is no second thought over this statement. The way DePIN crypto projects reduce dependency on large organizations and enhance the overall system resilience, no doubt this incremental innovation is a Sharing Economy 2.0. DePIN solutions bring a transformative change in how we manage everything from wireless networks to energy grids in the future at a large scale.
The following are the trends unfolding in the DePIN development space in 2024. Check it out-
Most developers in 2023 focused on building out their networks and taking the supply side online. However, 2024 is showing signs of DePIN solutions leaving its realm of abstract speculations and entering into the real world.
Real World Example-
Bosch, the multinational engineering and technology marvel, has taken an interest in DePIN solutions. In December 2023, the company collaborated with Peaq and Fetch.ai for the XDK110 Rapid Prototyping Kit. This all-in-one sensor detects temperature, humidity, air pressure, and more, and pairs with different DePIN crypto projects in the Peaq ecosystem to provide network data.
Bosch also partnered with Peaq for a P2P-based parking scheme that allows vehicles to autonomously interact with charging stations & facilitate payment over an IoT network.
DePIN represents a network of physical hardware. Decentralized computing involves mobilizing the user’s computers to handle complex computation tasks. Traditionally, tasks such as machine learning, video renderings, and data analytics are performed by centralized data centers with high processing capabilities. However, distributed networks offer compelling advantages in terms of costs, security, and decentralization.
Real World Example–
DePIN crypto projects like Render and Aleph enable tech companies to not depend on centralized infrastructure for high-performance computing.
Artificial intelligence serves as an excellent example of a computationally intensive process. Training large language models (LLMs) like ChatGPT or Bard involves feeding them massive datasets to identify patterns in word associations. This process demands various resources at different stages: beyond the computational power required for training, the data must also be sourced, with decentralized networks providing assistance for both tasks.
Real World Example-
Several companies worldwide are switching to blockchain-based solutions for reducing carbon footprints. When it comes to reducing energy waste, the DePIN crypto projects emerge as a prominent solution. Today, substantial energy waste occurs due to the one-way flow of power from centralized generators to retail users. DePIN solutions decentralize the retail energy source, enabling more efficient and better-designed systems.
Real World Example-
Solana is renowned for its excellent performance, scalability, and low transaction fees, making it an ideal blockchain for projects that require fast and affordable micro-payments. The Solana DePIN ecosystem hosts over 25 projects, with prominent ones being Render, Hivemapper, and Helium. However, it faces challenges such as maintaining sustainable incentives, ensuring network reliability, and dealing with competitive pressures from other blockchains.
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Real World Examples:
The following are the top DePIN projects 2024 that have the potential to redefine industries and enhance user experience.
Wireless DePIN crypto projects like Helium aim to take a share of connectivity services from large network providers. This network employs a multi-token system, where each token has a specific role in supplying network resources and rewarding providers. The unique consensus mechanism, the Proof-of-Coverage (PoC), is the standout feature of the Helium network that validates the quality and authenticity of the network coverage provided by the hotspots.
Founded in 2015, Hivemapper is a top DePIN crypto project in the location services niche. Originally focused on mapping software using LiDAR and imaging technology, Hivemapper rebranded in 2022 to launch a decentralized mapping network. Contributors use dashcams to capture high-quality images during their drives and are rewarded with $HONEY tokens. These images are then used to create a global map, accessible to businesses and organizations via Hivemapper Inc.’s Map Image API.
Filecoin stands out as a groundbreaking decentralized data storage network, creating a platform where people can lease out their hardware storage in an open market. FIL token in this system plays an essential role in incentivization, governance, and payments.
Being one of the first and top DePIN crypto projects, Filecoin directly challenges centralized services such as Amazon S3 by providing a better alternative that scores high in security and reliability. It achieves these traits through advanced mechanisms like Proof of Replication (PoRep) and Proof of Spacetime (PoSt).
Theta Network is an EVM-compatible platform and a project in the bandwidth network DePIN that comprises a blockchain network and an Edge network. The blockchain manages financial transactions and smart contracts, while the Edge network handles storage and media asset delivery. Providers earn THETA tokens as rewards, and bandwidth can be shared across mobile, PC, and other devices.
Arkreen is a decentralized green energy project that incentivizes providers to share data about their energy plants. This data includes details like the capacity of their solar setups and similar information. On the demand side, Renewable Energy Certification (REC) issuers and green computation operators use this electricity data to develop applications and services.
In April 2024, the Peaq network raised $15 million to expand its ecosystem, whereas Helium integrated Solana to improve its network scalability and reduce the cost to a great extent. These advancements in the DePIN ecosystem are evident in its growth.
The DePIN landscape’s market size in 2028 showcases its potential growth in the approaching years
Just like gaming guilds, DePIN miners are expected to form global hardware miner groups in the future. These groups can benefit from opportunities in the global hardware supply chain, node deployment services, and data aggregation tools within the DePIN ecosystem.
GPU platforms do not directly possess GPU resources but rely on token incentives for supply. GPU computing power stands out as a dynamic sector in the DePIN space. Talking about future trends, GPU platforms will move towards horizontal integration and vertical penetration. Additionally, the emergence of compute-storage integration, combining storage with computation, will reshape the landscape. Traditional storage solutions such as Filecoin and Arweave will also experience major growth.
When it comes to the AI sector, there will be going to increase in the number of best DePIN projects driven by this technology. DePIN AI projects such as Bittensor and ORA are already in this race.
The DePIN (Decentralized Infrastructure Provider) sector has emerged as a powerful driver of innovation in the cryptocurrency space. DePIN crypto projects utilize blockchain technology to bridge the gap between the digital and physical world to foster a more secure, efficient, and community-driven approach to infrastructure management. From rendering services and bandwidth trading to tokenizing real-world assets, DePIN solutions are disrupting traditional industries and creating exciting new possibilities. While challenges such as regulation and scalability remain, the rapid growth and increasing investor interest in best DePIN projects suggest that this technology has the potential to reshape the future of infrastructure.
As DePIN crypto projects continue to evolve and expand their offerings, we expect to see even greater integration between decentralized networks and physical infrastructure, ultimately leading to a more robust and equitable digital landscape. It’s important to remember that, like any investment, DePIN crypto projects carry inherent risks. Before investing in any top DePIN projects 2024, relying on a reputed DePIN development company is crucial. Antier is the ultimate partner to leverage the power of DePIN and thrive in the competitive blockchain landscape.
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