I’ve been around crypto long enough to see DeFi, NFTs, gaming, and community tokens rise and fall in hype. Now there’s a new buzzword going around: “DePIN.”
Is DePIN the next catalyst that brings crypto to the mainstream, or will it be forgotten in a few months?
What is DePIN?
DePIN stands for Decentralized Physical Infrastructure Networks and represents any cryptocurrency with real-world use. Have you heard that one before? I have. The key difference here is that DePIN is blockchain only on physical devices.
It works like this: you’re surfing the internet, streaming your favorite show, and suddenly, you get a notification that you’ve earned some money. DePIN is supposed to make the users the masters of their 5G, WiFi, or Internet of Things by allowing them to provide service for others and themselves. You do the heavy lifting of providing your server and earn money for doing so.
Here are a few DePIN projects you might find interesting:
- Filecoin, Storj: Projects that store data and users earn for storing data on their devices. Both are supposed to be AWS competitors.
- Chirp Wireless, Helium: Each provides devices that promote connectivity for IoT devices, Wifi, and 5G. The latter, Helium, even has cheap cellphone plans and is one of the best crypto use cases to date.
- Theta: Decentralized streaming service; faster than Netflix.
- Hivemapper Network: Decentralized Google Maps that you get rewarded HONEY tokens for using your dashcam to map streets.
Is DePIN Worth The Hype?
I interviewed the creator of Chirp Wireless last year, and before then, I wasn’t even familiar with the term “DePIN.” Now, it’s everywhere.
New crypto narratives, like AI, DePIN, socialfi, and gaming, pop up like mushrooms after rain. Many of these buzzwords generate hype that leads to scams, leading to a stagnate clandestine industry. But in the middle are a lot of great projects, too.
DePIN makes more sense to me than NFTs or even Web3.
Right now, in Miami, Helium is offering cellphone plans that are much cheaper than competitors. Users can earn money by buying a modem that provides coverage. That’s a good thing for crypto, and it’s a good thing for life.
Companies like Chirp Wireless are working on an international IoT network.
“Real world assets” used to be like scratching your nails on a chalkboard, but it’s finally gaining traction under DePIN.
Other DePIN Projects to Check Out
Here are a few
- 2Blox:They’re an app available on Android and IOS that shares local road traffic, and rewards users with crypto. This not only enhances the reliability of traffic data but also engages the wider community.
- Silencio:They employ 35,000 smartphones to report how noisy a restaurant or venue is to alert other users; they also had some cool ads during Valentine’s Day.
- Natix:Earns crypto for users sharing their driving reports (i.e. accidents, potholes, traffic reports) and benefits various industries like automotive finance and insurance. If you’re already losing your data, why not get paid for it?
Crypto was meant to be a middle finger to the global currency system, which governments and regulators are holding down. That goalpost has shifted tremendously. Nothing is 100% decentralized, not even Bitcoin.
In light of all this, several crypto projects still significantly outperform their counterparts in terms of liberty and fiscal rewards.
Chirp.io will be a better IoT and 5G provider; Theta will shake up the streaming service hegemony; Bitcoin is gold 2.0. With DePIN, we’re not just talking about a new sector in the crypto industry but a revolution in building and managing real-world infrastructure. I think DePIN has staying power.
