The world of technology is extremely vast, with new inventions only propelling the world forward. One of the earlier concepts is currently experiencing a huge boost in blockchain services. Web3 and blockchain technology are becoming the go-to technologies for several organizations that want to improve their overall output, improve security, and get a more secure method of storing information.
Under the banner of blockchain services, the world is watching a range of services evolve, primarily because businesses and people are trying new ways of leveraging the technology for their benefit. DePIN is one such concept. In this post, we will be exploring this technology in detail.
So, keep reading to learn more and see if your business can benefit from it.
What is DePIN?
DePIN (Decentralized Physical Infrastructure Networks) is essentially a peer-to-peer (P2P) network created with the intention to meet hardware demand using an open and decentralized marketplace.
It is responsible for bridging physical infrastructure with blockchain technology. It includes individuals providing resources such as data storage, wireless connectivity, sensors, energy grids, and more, in exchange for rewards per the incentive mechanism.
While the idea of leveraging incentives and game theory isn’t new, DePIN is different because it merges blockchain with practical, and real applications that are relevant to the public.
What Types of DePINs Exist Today?
When it comes to segregating DePINs, it can be divided into two segments, namely
Physical Resource Networks (PRNs)
PRNs offer crypto incentives to people who deploy location-dependent hardware. This hardware works as a resource to supply energy, network connectivity, or geospatial data.
Digital Resource Networks (DRNs)
Digital resource networks are different from PRNs because they are not location-dependent. So, it is possible to use these services irrespective of geographical location.
Storage facilities, bandwidth, computing, and other such resources come under this category.
How Do DePINs Work?
DePINs work on three elements, namely, off-chain networks, blockchain, and protocols. Let’s dive into these elements:
Off-Chain Network:
DePIN consists of an off-chain network that consists of users and service providers. End users who need resources such as GPU computing power, wireless connectivity, or data storage can leverage the open marketplace to buy these resources from service providers.
Blockchain Solutions:
The use of blockchain service providers is to unite the end users with service providers. It functions as the public ledger responsible for handling payments and escrow contracts. These solutions by Blockchain development companies ensure that all transactions are processed and tracked effectively.
It includes keeping time-stamped and recording on-chain all the transactions between the end-users and service providers.
Protocols:
Protocols are rules that determine the key features of the functioning of DePIN. These rules are responsible for DePIN’s security measures, total native crypto tokens in circulation, service provider eligibility, user-service provider interactions, and much more.
Given these elements of DePINs, you will need to contact Web3 development company to assist you with the creation of such platforms. You will need a team proficient in preferred programming languages for blockchain solutions for easy sailing.
The DePIN Flywheel
DePIN Flywheel shows how the technology incentivizes people for giving their physical infrastructure networks for organizations, other people, and machines to use. That too, without the need for significant upfront investment like the traditional business models.
In essence, there is a token system that incentivizes people to deploy their hardware for people in need of the said infrastructure. As there is no middleman in the mix, all the services are cheaper and faster.
What are the Benefits and Some Disadvantages of DePIN?
Pros:
- It creates an open and decentralized marketplace
- Zero Censorship
- Well-established DePINs can bring competitive pricing
- Eradicated the problems associated with a single point of failure
Cons:
- New DePIN services are subpar compared to those of traditional centralized entities.
- Setting up DePIN requires specific technical skills.
- Toke price unfavorable volatility can negatively impact the DePIN ecosystem.
DePIN Blockchain Services in Action – Some Use Cases of the Latest Tech
There are several DePINs in existence currently. These examples will help clarify the various ways that you can leverage the technology to your benefit.
Filecoin (FIL) - Decentralized Data Storage
Filecoin is a blockchain solution offering decentralized data storage services to users. On the platform, anyone who has the necessary infrastructure can provide storage by using FIL tokens as collateral.
FIL tokens are the cryptocurrency of Filecoin that users can utilize to make payments for storage services.
Render (RNDR) - Decentralized Computing
Render is a blockchain service focused on offering peer-to-peer GPU processing. It provides real-time computing power for 3D rendering tasks, AI and ML training, sophisticated calculations, and other such tasks.
People who have the required computing power can lend their GPU services to the network and earn RNDR tokens from end users to fulfill their rendering needs. As GPU providers build reputations on the platform by providing deliverables in a timely and accurate manner, they get higher job volumes. Additionally, the Render users also have reputation scores to reduce congestion from failed renders or other malicious activities.
On this platform, the users utilize RNDR token that was created on Ethereum blockchain, but in 2023 was shifted to Solana blockchain.
Theta network (THETA) - Decentralized Content Delivery Network
Theta network is another creation of blockchain service providers that use peer-to-peer blockchain protocol to decentralize data storage, computing services, and content delivery. On this platform, the service providers offer storage and bandwidth to end users.
It is unique in the sense that it has a dual token system. Theta Token (THETA) is used for staking and is a governance token. On the other hand, Theta Fuel (TFUEL) is what end users offer to service providers for their resources and is an operational token.
Who Should You Hire for Blockchain Services?
When it comes to everything related to blockchain services, you will need experts by your side. So, whether you are looking to create flash loan arbitrage bots or web3 gaming, you need to get in touch with the relevant company.
You will find blockchain, DAO, dApp, and NFT development services with every blockchain services provider. Additionally, you can launch dApp supporting your DePIN by leveraging the dApp development services from the relevant company.
You can contact us for these services and others.
Start Leveraging Blockchain Services Today
The above-mentioned examples, as well as the concept behind the DePIN, clearly indicate that these platforms are going to become a major part of blockchain services. They have a lot of potential for budding entrepreneurs as well as people who want to leverage the latest technology to their benefit.
If you would like to learn how you can leverage your resources to make money, want to create DePIN, or need to hire a blockchain developer, get in touch with MoogleLabs. As Web3 development services providers, we offer consultation to determine the best ways to utilize the technology for each organization.