Blockchain
Navigating the World of DePIN: A Beginner’s Guide
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In Brief
Discover DePIN's impact on infrastructure in our detailed guide, exploring how blockchain is revolutionizing real-world networks with DePIN.
When people think about blockchain and cryptocurrency, they tend to think exclusively about the digital realm. However, blockchain is also taking steps into the physical world with Decentralized Physical Infrastructure Networks, or DePIN, for short.
DePINs are blockchain protocols that build and operate real-world infrastructures in a decentralized and open manner.
These protocols utilize cryptocurrency tokens to reward the building and maintenance of real-world infrastructure. Because of their unique approach to infrastructure build-out, DePINs can potentially disrupt various sectors.
Decentralized Physical Infrastructure Networks can potentially also play an important part in the future of Web3 decentralized networks because of their ability to leverage various technologies such as the blockchain, physical infrastructure, and the Internet of Things (IoT) for the common good of all participants.
In this guide, we’ll take a look at the four pillars of DePIN, as well as its mechanics.
Before You Get Started
Before we jump into the world of dePIN it’s important to note that you can acquire and manage popular dePIN assets such as Filcoin (FIL), Render (RNDR), Arweave (AR), and more. Below we’ll have a look at how you can add these assets to your wallet.
Trust Wallet can be downloaded as a mobile app, or you can install the Trust Wallet Extension for your desktop browser. For this guide, we'll focus on creating a new wallet using the Trust Wallet mobile app.
Get the most updated version of Trust Wallet
Below you’ll see the steps to create a new wallet, but you could just as easily import an existing Web3 wallet to Trust Wallet, if that’s your preference.
To create a new wallet:
Install, then open Trust Wallet
Choose “Create a new wallet”.
Choose your backup option, or you can optionally postpone the backup process by choosing “Skip”.
Start using Trust Wallet.
Fund Your Wallet with Crypto
There are two main ways to add crypto to your wallet.
You can buy crypto directly using Trust Wallet via our trusted third-party providers
You can deposit crypto from another address or centralized exchange
Let’s briefly look at the steps for both.
How to Buy Crypto Using Trust Wallet
In this example we’ll look at how to buy Solana (SOL), since this is a swappable asset for BONK.
Select “Buy” from the home screen
Search for “SOL” or “Solana” and select it.
Choose the currency you want to use, then enter the amount of SOL you want to purchase.
Select the third party provider & payment method you’d like to use.
Select the Buy button and complete the remaining steps.
How to Deposit Crypto Using Trust Wallet
You can also deposit SOL easily and here’s how.
Select “Receive” from the home screen
Search for “SOL” or “Solana” and select it.
From here you have two options. You can either
Copy your deposit address and use that on your exchange account or other wallet to send funds to.
Use the “Deposit from exchange” option to deposit crypto seamlessly from your exchange account.
Understanding the Four Pillars of DePIN
DePIN is made up of four main pillars, with each category offering incomparable benefits and solutions. Let’s take a look at each of the aspects that make up DePINs.
Cloud Storage Networks/Server Networks: In the DePIN ecosystem, storage and server networks are decentralized, thus offering secure and buoyant data storage. This is different from centralized storage services, which typically have single points of failure. DePIN provides a robust alternative to common storage services by disseminating data across various nodes of storage points.
Wireless Networks: The DePIN protocol provides a fresh outlook on wireless networks, such as 5G or WiFi, which helps to advance a decentralized network of hotspots. DePIN’s technique helps to democratize internet access, thus making it more effective and accessible, unlike traditional Internet Service Providers (ISPs) that often leave remote or rural areas with no connectivity.
Sensor Networks: The decentralized sensor networks in the DePIN network help to collect and monitor precise data from their respective environment. This approach offers transparent and secure storage of sensor data, boosting its accessibility and integrity.
Energy Networks: DePIN has a decentralized energy network that portrays a revolutionary shift when it comes to the trading and sharing of energy resources. DePIN’s energy network allows people to directly sell or trade any excess energy to their local community members or neighbours, cultivating a more community-focused outlook on energy distribution.
The four pillars of the DePIN protocol work hand-in-hand to deliver on its unique capabilities.
With blockchain technology underpinning all four categories, users are guaranteed a high degree of decentralization, efficiency, and enhanced security. This speaks to the transformative power of blockchain, which enables DePIN protocols to transform how people approach infrastructure.
The Mechanics of DePIN
Decentralized Physical Infrastructure Networks bank on a mix of crypto-economic protocols and blockchain to build and maintain physical networks in a permissionless, trustless, and programmatically controlled way.
The key elements of a DePIN protocol include blockchain architecture, off-chain computing infrastructure, physical network infrastructure, and token incentives. These elements combined allow distributed individuals to manage and maintain physical infrastructure networks that are controlled and owned by the people globally.
Tokens are essential in the DePIN ecosystem as they are used to bootstrap the distribution of physical infrastructure networks while creating a powerful network effect.
DePIN’s essence, therefore, lies in its real-world utility, and DePIN crypto tokens are used to unlock real-world use.
For instance, DePIN crypto token holders can get access to tangible services, like energy, web access, or telecommunication. This radical approach provides DePIN crypto tokens with an intrinsic value tied to tangible services and assets.
Currently, various companies are leveraging blockchain technology to revolutionize a range of industries. These companies have also released their own DePIN crypto tokens to support their ecosystems. Some of these include:
Akash Network (AKT): An open Supercloud blockchain network that makes it easy to quickly access services worldwide and scale. Its native token, AKT, is used to govern and secure the Akash Network.
Arweave (AR): A Web3 protocol solution that provides data storage on a decentralized network of devices. Miners on Arweave have a chance to earn AR tokens by verifying data.
Filecoin (FIL): A peer-to-peer (P2P) storage network that provides a decentralized market for storage space. Filecoin’s crypto token, FIL, is used to pay storage space providers.
Helium (HNT): A network for wireless infrastructure. Helium enables people to purchase Helium hotspots to provide wireless coverage and earn its HNT tokens in exchange.
Render Network (RNDR): A provider of decentralized, distributed GPU rendering solutions. The RNDR token is used to pay for various rendering services on the Render Network.
Theta Network (THETA): A decentralized, P2P blockchain-powered video delivery network. Its token, THETA, is used for governance, staking, validation of transactions, and the production of blocks.
Decentralized Physical Infrastructure Networks are changing the landscape of physical infrastructure.
Its protocols enable both small entities and individuals to engage, transact, and even contend with conventional centralized infrastructure giants by reinventing how people think about and use physical infrastructures like energy grids or communication networks.
Conclusion
The DePIN sector is a fairly new industry that will continue to evolve. The use of blockchain and tokens to incentivize the running and maintenance of physical infrastructures makes it a potentially interesting industry to invest in or watch out for. Its ability to support the move from centralized to decentralized framework markets makes it an attractive sector to enter.
DePIN protocols are still a niche sector within the digital asset market. However, its growth potential is substantial as there are various crypto projects, such as Arweave, Filecoin, and Helium, that are already leveraging the technology. If widely adopted, DePIN can also help to boost the adoption of cryptocurrencies and blockchain technology across various sectors.
DePIN presents an interesting frontier in the physical infrastructure network sphere as it promises to redefine the way people interact with critical services. By embracing blockchain technology, collaborative governance, and decentralization, DePIN provides a path to improved efficiency, empowerment, and resilience.
Harnessing the full potential of DePIN may be essential in developing a more future-proof, inclusive, and sustainable infrastructure ecosystem.
Frequently Asked Questions
What is Decentralized Physical Infrastructure Network (DePIN)?
DePIN refers to blockchain-based protocols that construct and manage physical infrastructures in a decentralized fashion. Unlike traditional centralized models, DePINs offer a more open, efficient approach to building and maintaining real-world infrastructure.
How do DePINs operate?
These networks utilize cryptocurrency tokens to incentivize the building and maintenance of various infrastructures. By leveraging blockchain technology and Internet of Things (IoT), DePINs ensure secure, transparent, and decentralized operations.
What advantages do DePINs offer?
DePINs have the potential to revolutionize various industries by democratizing infrastructure development. Their decentralized nature reduces reliance on centralized entities, enhances security, and promotes community involvement in infrastructure projects.
Can you explain the four pillars of DePIN?
DePIN is built on four key pillars: Cloud Storage Networks, Wireless Networks, Sensor Networks, and Energy Networks. Each plays a crucial role in the ecosystem, offering solutions from decentralized data storage to democratized energy distribution.
What role do DePIN tokens play?
In the DePIN ecosystem, tokens are crucial for facilitating the distribution and operation of physical infrastructures. These tokens not only help in network expansion but also provide tangible real-world utilities, such as access to services like web access or energy.
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Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.