The advent of blockchain technology has transformed several industries, from finance (DeFi) and gaming (GameFi) to Web2 brands such as Nike for photography and Starbucks for the benefit of Web3 client. However, one area that hasn’t changed is the body system.
Generally, the organization and management of physical systems, such as telecom companies, cloud services, mobility companies and power companies, are controlled by large companies due to They have huge financial requirements and logistical problems.
As a result, these companies have a near monopoly on prices, standards and services offered to end users, leading to a lack of competition and innovation. That is, until blockchain and Web3 entered the picture.
Most are familiar with DeFi, GameFi, SocialFi and decentralized autonomous organizations (DAO). DePIN, which stands for Decentralized Physical Infrastructure Networks, is an emerging use case with real world experience. It uses tokens to bootstrap the deployment of physical systems, then creates a web solution that opens up the new design space of real-world DApps.
DePINs is an emerging crypto-type that uses blockchain technology to build and operate real-world physical systems and networks that are permissionless, trustless and programmatic.
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These DePINs are the new evolution of the Internet of Things (IoT) for the Web3 ecosystem or a decentralized IoT where users, users and companies have access. DePINs enable people distributed throughout the world to jointly build, maintain and use human technology companies without a single right.
DePINs encourage providers-side to build the network through the use of crypto-economic protocols, offering end-users better and new services than traditional models.
Purpose of DePIN
In November 2021, our IoTeX became the first Web3 project to put a name to this future business, called MachineFi. Messari became the first person to refer to him as DePIN in July 2022.
Token Incentivized Physical Infrastructure Networks – or TIPIN – was issued in the same month. TIPIN presents a website that uses indicators to encourage people to contribute to the promotion and operation of physical systems and equipment, creating a better model. and equity for promoting businesses.
Then, in August 2022, came Proof of Physical Work (PoPW), which specifically specified the incentives that would allow someone to give consent to a set of shared goals. Helium, for example, allows its users to provide separate wireless networks with hotspots for people to connect smart devices in a safe, low-cost and energy-efficient way.
Hivemapper is one example. It describes itself as a decentralized map developed by people who use the first crypto-enabled dashcam. And DIMO, a user-friendly DePIN platform that allows users to increase the value of their connected devices, starting with cars.
In addition, HealthBlocks provides a secure health information sharing and coordination through the use of blockchain and tokenization to create a more efficient and patient-friendly health system.
Then there are DePIN server providers, such as IoTeX, who offer server systems such as W3bstream, development tools and go-to-market support to enable decentralized education business projects.
In September 2022, EdgeFi emerged as an evolution of decentralized learning networks that focuses on the use of hardware resources close to end users on the internet side. In short, EdgeFi is a decentralized learning enterprise that creates edge computing.
In November 2022, Messari decided it was time to put a name on the Web3 physical system and create a Twitter poll where voters could choose from PoPW, TIPIN, EdgeFi, and DePIN. They left MachineFi. DePIN won with 31.6% of the votes (136).
A Web3 business needs a name!
Often referred to as Proof of Physical Work (PoPw), Token Incentivized Physical Networks (TIPIN), EdgeFi, or Decentralized Physical Infrastructure Networks (DePIN), crypto has yet to agree.
Vote below, or add a comment⬇️
— Messari (@MessariCrypto) November 5, 2022
And in December 2022, Messari commented on the research for the first time, saying that “it will be one of the most important areas of crypto investment for the next few years.”
How does DePIN work?
DePINs uses blockchain technology and crypto-economic protocols to enable people distributed throughout the world to jointly build, manage and operate physical transactions in a trustless, permissionless and programmatic manner. . DePIN has four main components:
- Physical activity: DePIN sites need to work on physical systems. It can be anything from motors for car networks, solar panels and batteries for energy networks, hotspots and drivers for wireless networks, or servers for cloud networks.
- External registration number systems are: DePIN relies on middleware that connects the physical and blockchain worlds. A user’s real-world actions are tracked in their billing and delivery statistics. In addition, these data can be aggregated for use cases on the chain, such as reports for smart contracts and decentralized data markets.
- Blockchain architecture: Each DePIN network connects with the blockchain architecture that has smart contract verification. This blockchain network acts as a guide, payment transactions and other value exchanges between members of the network, such as buying a broadband from a tenant to their router.
- Token Incentives: Provider-sides are encouraged to join and contribute to the site through token rewards. These signs act as a contribution to the page participants, allowing them to build the site before making continuous payments from using the claim page.
a. supply side: Anyone can become a member of the provider page of a DePIN website by using their physical account and connecting it to the website. For example, a homeowner can design a router and become a web server provider.
b. Forced page usage: Once the network is established, end users can start paying to use the network’s services or consume real-world data. It creates an opportunity to attract participants and investors, to stimulate growth and investment.
What is the future of DePIN?
Given that there are more than 40 billion smart devices and machines, and trillions of sensors installed worldwide, the future is DePIN. And as demand for decentralized systems continues, more and more people and businesses will look to DePIN to build their networks.
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With the ability to use blockchain technology and tokens, DePIN offers a better, more efficient and collaborative way to rethink the way we build tomorrow’s physical industries.
DePINs represent an exciting new frontier in the world of blockchain technology. They offer a new way of building and creating real-world systems that are more equitable, efficient and consistent with the needs of Internet users. As technology evolves and new use cases emerge, we can expect DePIN to play an important role in the development of our physical world.
A paradigm shift
DePIN represents a paradigm shift in the organization and operation of physical infrastructure. It provides a more efficient, decentralized and equitable way to organize businesses.
With the ability to expand rapidly and disrupt traditional businesses, DePIN can become a major player in the business world. As more DePIN projects are developed and deployed, we expect significant disruption and innovation in the way we build and manage physical technology infrastructure.
Raullen Chai is the founder and CEO of IoTeX. He previously worked for companies including Google, Uber and Oracle. He has a Ph.D. from the University of Waterloo, where his research focused on the design and analysis of lightweight ciphers and IoT authentication protocols. At Google, he led important security initiatives for its technology, including SSL offloading, privacy protection SSL offloading and authentication authentication for all Google services. It is also the founding engine of Google Cloud Load Balancer, which serves thousands of cloud services, with 1 million-plus queries per second.
Andrew Law is a research scientist at IoTeX, where he conducts deep scientific research in Internet of Things (IoT), blockchain and Web3 applications. He previously worked as an application engineer for EvapTech in Malaysia, and holds a Ph.D. in technology and systems engineering from Virginia Tech.
W3bstream is the Decentralized Middleware Infra for IoTeX for connecting smart devices to smart contracts. Healthblocks and DIMO are DePIN ecosystem partners of IoTeX. This article is for general information purposes and is not intended and should not be taken as legal or investment advice. The opinions, views and opinions expressed herein are solely those of the author and do not necessarily reflect or reflect the views and opinions of Cointelegraph.