DePIN: The New Narrative In Crypto This Cycle

DePIN stands for Decentralized Physical Infrastructure Networks. Basically, you are using Web3 incentive mechanisms to encourage communities to build decentralized real-world infrastructure networks or things that people can actually tacitly use.

Decentralized Physical Infrastructure Networks (DePIN) has been one of the hottest narratives emerging in the crypto markets this cycle. But what exactly is DePIN? And more importantly, what are some of the newer projects coming out in this sector right now?

Let’s quickly delve into this new niche by understanding the concept of DePIN projects, then we’ll explore some of the projects in this sector. Who knows, maybe one of these projects is the one we have been looking for.

What Is DePIN?

Just to refresh your memory and get you up to date, DePIN stands for Decentralized Physical Infrastructure Networks. Basically, you are using Web3 incentive mechanisms to encourage communities to build decentralized real-world infrastructure networks or things that people can actually tacitly use.

DePIN could be applied to AI, wireless networks, energy networks, or basically anything in the real world that can be adapted in some kind of Web3 way.

How Big Can This Sector Get?

At the time of writing, the DePIN sector has a market cap of around $35 billion. If you think that is big, the projections are even bigger and crazier.

According to a report by Messari, the DePIN sector could add $10 trillion to the global GDP in the next decade and another $100 trillion in the decade after that.

If you are looking for a narrative that has the potential to last for a long time, then look no further, here are some of the newer and older DePIN projects that you should be noticing on your radar:

Peaq Network

The first project on our list, Peaq Network, has huge potential to dominate the sector. Peaq is a Layer-1 blockchain that was built specifically for DePIN.

Let’s try to come up with an analogy for what Peaq actually does. When you are sick, you go to your family doctor. But if you believe that you have a specific condition or something, you will naturally go straight to a specialist in that medical field instead of a general practitioner.

In the same way, Peaq was made to be DePIN’s specialist network as it can process up to 100,000 transactions per second, which is crucial for a network that wants to host a vast number of connected devices and process all kinds of real data points around the world. Best of all, the transaction fees can be as low as $0.00025.

Decentralization

If you are concerned about decentralization, the project has a Nakamoto Coefficient of 90+. The Nakamoto coefficient is often used to check just how decentralized a network actually is; the higher the number, the better.

Partnerships

peaq 🤝 Mastercardpeaq has been selected for @Mastercard’s award-winning Start Path program to explore synergies and opportunities between the #DePIN sector and the world of traditional finance and fintech 🏦Traditional finance (TradFi) infrastructure can massively accelerate… pic.twitter.com/cgmEcAIqkp

If you still do not see any potential, maybe this will change your mind. Mastercard has selected it to be part of its Start Path program, which connects promising startups with industry experts and resources to help them scale up their fintech solutions.

NATIX Network

Does your work require you to drive a lot? Or do you just like going out for that Sunday drive or whatever it might be? What if you could monetize your travel every time you get in the car and drive around for work all day? Thanks to DePIN networks like NATIX, you could be making extra money.

NATIX is an AI camera network and anybody with a smartphone can join; you do not need to buy specialized equipment. Download the NATIX app on your smartphone, then place your phone on your dashboard using your phone camera.

The app will then scan the road to get important information about what’s happening such as traffic congestion, surface, damage, and free parking spots. This data is then used to help improve maps in real-time, so think of this as some decentralized version of Google Maps, except that you get to get paid for it.

Investors & Backers

Investors and backers in this project include Crypto.com, the Digital Currency Group, Nvidia, Google, Solana, and as well as Peaq Network.

Render Network

We have covered Render Network in our previous DePIN article, but it is not just a DePIN project, but also a top project in the AI space.

Render Network is a multi-narrative project with a market cap of more or less than $4 billion at the time of this writing. The network connects owners of idle GPU computing power with users who need it. The GPU power is used in a wide array of tasks such as basic artist rendering to AI applications, and contributors are then compensated with the $RNDR token.

The Render Network is an alternative decentralized solution to those of more expensive and