Discover DePIN: From Decentralized Hardware to Open Data Economy

What is DePIN? It is not just an acronym but a movement that is changing the way we perceive digital infrastructure. In recent years, DePIN (Decentralized Physical Infrastructure Networks) has become one of the most rapidly growing trends in the blockchain space, opening up new possibilities for building systems without centralized intermediaries.

DePIN - From Definition to Practice

DePIN represents the intersection of core blockchain principles—community ownership, public verification, and token incentives—with physical devices and real-world infrastructure. Instead of WiFi devices, security cameras, or computing servers controlled by centralized companies, DePIN allows ordinary users to deploy and operate these resources in a decentralized manner.

When Paul Veradittakit from Pantera Capital analyzes DePIN, he points out that projects in this field encompass various forms: from decentralized storage networks like Arweave and Filecoin, to WiFi connectivity networks like Helium, to community-operated applications like Hivemapper. Although these projects appear diverse, they all follow a common principle: using tokens to incentivize behaviors that benefit society and to build infrastructure.

Token Flywheel: The Incentive Mechanism at the Heart of DePIN

The most successful DePIN projects are not driven by complex technology but by smart economic design. Messari, a leading research organization, categorizes DePIN into four main areas: decentralized servers, wireless networks, sensors, and energy networks. But what links all these projects is the “token flywheel”—a mechanism where users provide resources (storage capacity, WiFi connectivity, sensor data) and receive token rewards.

This mechanism creates a positive feedback loop: more participants make the network stronger; a stronger network attracts more users and developers. However, maintaining the long-term sustainability of this loop is the biggest challenge most DePIN projects face.

Helium - When Community Networks Confront Real-World Challenges

Helium, one of the oldest DePIN projects launched in 2013, initially was a company aimed at expanding connectivity infrastructure by enabling users to deploy LoRa gateways. By 2017, it decided to enter the cryptocurrency world, creating its own Layer 1 blockchain to operate the network.

Helium was once called “the people’s network” because it clearly demonstrated how tokens can incentivize socially beneficial behaviors. However, over time, both the Helium network and protocol faced difficulties with liquidity and adoption rates. Weekly revenue declined, and analysts pointed out that the network’s use cases were exaggerated while incentives were unsustainable.

In April 2023, Helium completed its transition from an independent Layer 1 blockchain to a application on Solana. This move reflects an undeniable reality: as Layer 2 blockchains mature, maintaining an independent chain becomes more difficult. Solana offers scalability, better infrastructure development, and improved liquidity—things Helium needs to continue growing. Helium’s story shows that tokens can be very effective in launching new projects, but sustaining them long-term requires a delicate balance between economics and technology.

Hivemapper Disrupts Google Maps Monopoly with Decentralized Data

Hivemapper is another example of DePIN emerging on the Solana network, aiming to create a decentralized Google Maps. Its mechanism is quite simple: users install dashcams on their cars and share live video feeds with Hivemapper in exchange for HONEY tokens.

The company uses this distributed data to build a decentralized map, providing APIs for developers. What’s the advantage of Hivemapper over Google Maps? As a token-incentivized decentralized network, it can perform mapping at lower costs and faster speeds. The result is a cheaper API than Google’s.

What’s more interesting is how Hivemapper is redefined. Messari initially classified it as a “sensor network” because it uses cameras. But fundamentally, Hivemapper’s core capability lies in the data infrastructure it accumulates—decentralized data from a broad user network. This data is then monetized via APIs. Cameras are just tools for data collection, not the main purpose.

This point is crucial: DePIN can use tokens to generate large-scale data in a decentralized way—whether through sensors, web browsing (like the Brave browser), or even AI interactions—thus developing a new data economy.

Teleport and the Ride-Sharing Problem in the Web3 World

The importance of open data economies becomes even clearer when looking at Teleport, a decentralized competitor to Uber on Solana. In October 2023, Teleport launched its app and became a key part of the “Ride-Sharing Protocol” (TRIP), aiming to build a fair marketplace without centralized intermediaries or user interfaces taking a significant cut of revenue (often over 40% in traditional platforms).

This model is particularly interesting because it not only “decentralizes” Uber but rebuilds the entire data marketplace. Drivers, passengers, and trip information are valuable data assets. By allowing a DAO to manage this marketplace, Teleport creates space for the community to decide how to operate and distribute profits. While it remains to be seen whether Teleport will succeed, it demonstrates that an open, decentralized data marketplace can be a strong foundation for DePIN value propositions.

IoTeX Builds Secure Internet of Things with Blockchain

IoTeX represents another approach within DePIN: integrating security and privacy into the core of the system. Their flagship product is Ucam, a home security camera accessible only to the owner, with data protected by encryption and blockchain’s immutable properties.

As DePIN develops, IoTeX is not only building specific smart devices but also aiming for an “open network” of IoT devices and promoting the concept of “MachineFi”—where machines can autonomously earn money via blockchain. However, similar to Helium’s lessons, the biggest challenge is not technology but economics and long-term sustainability amid the convergence of Layer 1 and Layer 2 blockchains.

DAOs Becoming Companies: DePIN’s Breakthrough in Decentralized Governance

The broadest impact of DePIN is not just in the products and services it creates but in how it changes the nature of decentralized organizations. Most large DAOs today—such as Uniswap, Compound, and MakerDAO—mainly handle digital assets or financialized assets. Their governance focuses on financial decisions and digital resource allocation.

But as DePIN projects mature and gradually transfer management rights to DAOs, the need for DAOs to coordinate the purchase, use, maintenance, and upgrade of physical devices will increase significantly—whether servers, sensors, cameras, or hard drives. This presents entirely new challenges: DAOs will need to learn to operate more like traditional companies, with decisions related to supply chains, physical asset management, and technical support.

Another way to see it: DePIN is expanding DAO responsibilities from digital asset management to physical asset management. This is not a small step—it’s a breakthrough in how we organize large systems, potentially marking a significant milestone in bringing Web3 into real-world applications.

Looking Ahead: DePIN and the Development of the Blockchain Ecosystem

The value of DePIN lies in its ability to provide a genuinely consumer-oriented application layer, similar to DeFi, gaming, or social networks. Unlike purely smart contracts, DePIN connects blockchain with the physical world, which has the potential to drive real demand from everyday users.

Solana is currently the main platform for DePIN development, but other projects like IoTeX are building tailored solutions for DePIN. Because DePIN involves large numbers of users and IoT devices, future blockchains will need to combine high performance with scalability, along with suitable programming languages (like Rust) for easy deployment on devices.

More broadly, what is DePIN if not an experiment in how we can rebuild global infrastructure? It shows us that decentralized hardware, combined with smart economic incentives, can create new systems that do not rely on large centralized companies. That is the true promise of DePIN—not just technology, but a new way of organizing society.