If you’re old enough to remember, you know what the “oldschool” Internet used to look like. It was a hub of total freedom where people could express themselves fully - just like the blockchain is today.
With time, large global tech-giants swept in and built massive centralized platforms that consolidated data and attention under their roof. You may be surprised to know this, but the world of social media platforms, Reddit and Amazon Web Services is still a relatively new phenomenon!
Over time, any tech giant inevitably becomes a bloated bureaucratic mess that moves with the speed and maneuverability of an tran-atlantic oil tanker. In other words, all these highly centralised industries are ripe for “disruption”.
Enter DePin - Decentralised Physical Infrastructure
When a tiny speed boat can run circles around the oil tanker, so can decentralized systems such as DePin. Imagine any type of critical infrastructure like;
- Energy grid
- Internet
- Logistics
- Telecommunication
And think of how it can be decentralized. This is exactly what DePin is!
With the rise of Blockchain and Web3 we finally have the tools to make REAL decentralization possible. We can eliminate the tragedy of the commons and reward users for their participation in any given large infrastructure. If that sounds like sci-fi, you’ll be happy to know that several projects in Web3 are already doing it. Before we can look at them, it’s important to understand how DePin works.
How DePin works
When physical infrastructure is controlled by governments and large corporations, there will inevitably be inefficiencies and points of failure. When we decentralize ownership and operational responsibilities across a network of participants, this is when real magic happens. Why?
Aside from eliminating the pesky “tragedy of the commons”, DePin allows us to literally own a piece of critical infrastructure and ensures that our contribution to it is valued and rewarded properly. When you allow a decentralized network to run on your computer, you earn rewards. When you share your disk space, you earn rewards. In other words, we take the principle of mining and staking in crypto and apply it to the physical infrastructure. Again this is not sci-fi. It’s already happening today.
Incentivizing individuals and businesses is the core of DePin - when you play by the rules and when you support a decentralized network, your rewards are inevitable. Again, just like in mining (Proof of work) or in validating (Proof of stake) we can use incorruptible cryptography to accurately prove your participation. Combined with blockchain, we can even add transparency and decentralized governance to sweeten the deal.
Today DePin falls into several categories, such as;
- IoT Networks (Internet of things) and wireless networks: If you think about your fridge that sends you a message to pick up some milk, you’re thinking about IoT. Projects like Helium are already allowing people to set up wireless hotspots that create a truly decentralized wireless infrastructure.
- Decentralized Storage: Filecoin and Arweave are the industry leaders that allow users to “rent out” unused storage space on their hard drives. The idea behind it is to build a more reliable and resilient storage and data-sharing ecosystem
- Community powered social media: Bastyon is the industry leader in this nifty DePin application. The platform allows users to host and maintain an entire social media network on their device. There’s a P2P encrypted chat and even a bartering marketplace. All this decentralized wizardry has proven itself quite useful against external attacks and even censorship.
- Mobility and transportation: Networks like DIMO allow drivers to monetize their vehicle data and improve connected car services. On the other hand Atlas Navi is building a fully decentralized navigation platform that combines AI and blockchain technology to improve the driving experience for everyday people.
- Energy: Today Energy Web is by far the most famous player in this DePin niche. With the use of blockchain, the team is helping the adoption of renewable energy.
Of course there are many more notable DePin projects that are worth keeping on your radar today. These are simply examples of what’s possible and what’s already working in the real world.
What to expect in 2025 and onwards
As you can see, DePin is crushing it when it comes to eliminating inefficiencies and promoting decentralization. When it comes to security risks, working with something as immutable as Blockchain and DAG (directed acyclic graph) is simply a must-have. With the exponential leaps in development of the latest AI agents, things will get even more interesting! What about onboarding new users?
Today thanks to intricate and automated reward systems it’s possible to be an active participant in DePin projects without the need for KYC (identity verification) or other cumbersome minutiae that centralized tech giants try to enforce. Besides, who doesn’t like earning rewards? Not so long ago professional gamers could earn in-game credits only to exchange them for Bitcoin at a later stage. In countries with massive hyperinflation this has allowed people to literally survive the tough times. DePin will literally lift millions of people out of poverty and this is not an understatement.
The only criteria for DePin adoption is for the large centralized conglomerates to continue their “status quo” mode of operation - burdened with inefficiencies, bloated bureaucracy and a mania for aggressive expansion. In other words, DePin is destined to become successful.
What’s on our radar in 2025
Before we dive into our DePin spotlight, it’s important to remember that D3LTA is an agency that never promotes any financial advice. We are tech-obsessed people and we love innovation and we keep a close eye on these projects:
- Helium $HNT - A decentralized wireless network for IoT devices
- Filecoin $FIL - A global distributed storage network
- Render Network $RNDR - A decentralized GPU rendering network for accessing affordable computing power
- Bittensor $TAO - A decentralized AI platform for global cooperation
- Bastyon $PKOIN - A decentralized, fully censorship resistant social network for communities and commerce
- Destra $DSYNC - A network of decentralized AI-powered apps
The future is decentralized
Somewhere down the line we have been trained to be a participant in the so-called “rent economy”. Our music is no longer stored on physical carriers. We pay a monthly fee to watch films and series and even our food can be delivered to us with a pesky monthly subscription. This arrangement keeps us in a constant state of dependence and it allows the tech giants to rake in a hefty chunk of predictable monthly revenue. This is NOT a normal state of existence and this is a relatively new phenomenon - yet the new generations that grow up in this dystopian nightmare will experience it as completely normal.
Since 2009 we have seen an exponential evolution in Blockchain and Web3 that leaves skeptics scratching the head even today. Decentralisation, digital ownership and incorruptible code gave rise to an entirely new world view. It’s a world where you’re no longer a passive “consumer” - a cog in someone’s machine. It’s a world where you become an active participant. It’s a world where your voice actually matters.
DePin caters to precisely this demographic of people who yearn to experience a new reality where anything is possible. We are heading into a world where you will manage your data and won’t allow anyone to shamelessly siphon it off for their own profit. A world where you will be helping to build and maintain critical infrastructure from the comfort of your own computer. This is why DePin will only grow and gobble up more market share. It’s inevitable.
Conclusion
Although we have merely scratched the surface of DePin, it’s vital that you understand the core fundamentals of how and more importantly why DePin was born. Just like Bitcoin and Ethereum were created to solve very specific problems, so was DePin. Knowing the fundamentals will allow you to see past the fog of “marketing fluff” and hone in on true utility that will change and improve the lives of millions of people. As we move through 2025 and onwards, you will have a clear understanding where to look, what to look for and why. Your DePin journey starts now.