Decentralized Physical Infrastructure Networks or DePINs refer to physical infrastructures powered by blockchain technology.
They are decentralized in nature. The contributors to the setting up of DePINs are provided with incentives in the form of crypto-based reward programs.
The main aim of DePINs is to provide an alternative to the traditional infrastructure systems through the implementation of decentralization.
DePIN: What is It?
DePINs are peer-to-peer crowd-sourced infrastructure facilities such as data storage, wireless connectivity, sensors, or even energy grids that individuals contribute to the network.
These infrastructures work in a decentralized model. An example of a DePIN network is the Silencio Network, which is a global network that provides data to prevent noise pollution.
The network works by collecting data about noise pollution in a given locality and helping the concerned authorities take the necessary measures to deal with it.
The Silencio Network has its own native coins known as noise coins, which are used to reward the infrastructure providers.
Moreover, the DePIN networks are less costly compared to traditional networks. The value of each network is enhanced by the high number of participants it has.
With more incentivized infrastructure providers, the network expands and grows in value.
DePIN: How Does It Work?
DePINS works using blockchain technology. The main components of DePIN are given below.
Physical Infrastructure
These can be routers, sensors, or networking equipment that are used by the network for data collection.
Blockchain Architecture
DePINs work under blockchain architecture. DePINS create their own chains or are built upon other layer 1 chains.
Token Rewards
The contributors to the network are rewarded with cryptocurrency tokens.
Smart Contracts
Smart contracts determine the terms of resource sharing, token issuance, and overall governance of the network.
What are the Four Different Types of DePIN Networks?
DePIN networks belong to four main categories.
Cloud Storage Networks or Server Networks
DePINs belonging to this category are used to store data in a decentralized manner. A few examples of cloud storage networks are file storage, CDN, relational database, and VPN networks.
Energy Networks
Energy networks help in trading energy among the local community members. The surplus energy is not wasted but is distributed among the members of the network.
Sensor Networks
The sensor network gathers data from different sources and codifies them into integrated, usable forms.
Wireless Networks
DePINS acts as a hotspot and provides internet access to all at a subsidized rate.
What are the Real-world Applications of DePINs?
DePINS are innovative technology with many real-world applications. Some of the important applications of DePINs are explained here.
Data Storage
DePINs provide specialized infrastructure for storing data. They are low-cost, accessible means of storage. Storj and Filecoin are examples of DePINs used for data storage.
Telecommunications:
The wireless DePINs facilitate telecommunication and internet access to less developed areas with lower costs.
Supply Chain Management:DePINs help streamline supply chain management by enabling the live tracking of goods.
Healthcare:
A possible use of DePINs in the healthcare sector is that they can be used to store medical data such as patient records in a decentralized manner. This helps in easy access of the data by the concerned parties.
What are the Benefits of using DePIN Networks?
DePIn network is highly beneficial to its users. The blockchain technology-powered DePIN networks act as open-source networks that do not require the permission of a centralized authority to do their daily activities.
As this is a new technology, the field is highly competitive. This factor ensures that new innovations are made in a timely manner. Another major benefit is the lower fees levied for the services as compared to other traditional methods.
DePINS are also sustainable on their own. They have native resources and funds to maintain and secure their infrastructure.
The Bottom Line
DePINS is a revolutionary approach to utilizing physical resources for the common benefit of a local community. They are sustainable and immensely scalable.
This technology aids the new business owners by providing them with low-cost, easily accessible infrastructure facilities to acle their businesses.
DePIN is a technical innovation that every business should try to implement for their bright future.
