Crypto Narratives: DePIN
DePIN stands for decentralized physical infrastructure networks. Projects with this narrative usually have a centralized problem that is dominated by huge Web2 tech companies. Typically, these projects deal with the developments surrounding decentralized cloud storage, wireless networks, sensor networks or energy networks and intersect with blockchain. Notable projects in this area include Helium; IOTA; Theta; Arweave; NuNet; World Mobile, Filecoin; Flux; CloreAI; Render; Akash; Iagon; OctaSpace; ScPrime; WiFiMap; Dimo; Hivemapper; Neurai; and, Geodnet. Many of these projects are associated with blockchains like Solana and Cardano.
The angle that a particular project takes usually associates with a reservation over the capitalization model of the company or the undisclosed use of customer data collection. Linking the use of technology to decentralized monetary assets can allow users to earn as they drive, for example if they use the data that is collected by a Dimo device. The image below shows what is called the DePIN Flywheel. It depicts the process through which a project needs to go through in order to be successful. Essentially, the more users that are onboarded, the more liquidity will enter the project due to the rise in demand for DePIN services. The more liquidity that enters the space, the higher the demand for new services.
