What is DePIN?

Key takeaways

• Decentralized physical infrastructure networks (DePIN) are networks, of people and hardware, that use crypto token rewards and blockchains to build real-world infrastructure.
• Unlike traditional networks, which are built, owned, and monopolized by corporations, DePINs are developed and owned by their communities.
• The various types of DePIN networks are wireless networks (5G, WiFi, IoT), server networks (storage, VPN), sensor networks (weather, maps), and energy networks (power grids).

Understanding decentralized physical infrastructure networks

Decentralized physical infrastructure networks (DePIN) are networks, of people and hardware, that use crypto token rewards and blockchains to build real-world infrastructure. This infrastructure can be anything from storage and telecommunications to maps and ride-sharing services.

Unlike traditional networks which are built, owned, and monopolized by corporations, DePINs are developed and owned by their communities. How? Through a token economy model that incentivizes community members to contribute to the network—by providing resources such as storage space or hotspots—in exchange for crypto rewards.

Types of DePINs

• Wireless networks (5G, WiFi, IoT)
• Server networks (storage, VPN)
• Sensor networks (weather, maps)
• Energy networks (power grids)

Why is DePIN important?

DePIN is important because it decentralizes and democratizes infrastructure. In other words, it shifts control and ownership of infrastructure from centralized entities to decentralized communities. This is important because it aligns incentives in a way that those who use and contribute to the networks share in its success.

DePIN projects to explore

Hivemapper ($HONEY)

When it comes to decentralized maps, the DePIN project to know is Hivemapper. Hivemapper is a crowdsourced map on Solana, built and owned by its community. To create the map, you mount a camera on your dashboard and record your surroundings as you drive. Then, Hivemapper uses these images and videos to produce the maps and visualizations that the community relies on to navigate.

Other than mapping your surroundings as you drive, you can also play AI-trainer games to improve Hivemapper’s decentralized map. Here’s how it works. You’re shown a series of different street signs, such as speed limit signs, stop lights, and others, and you must select the right answer to train Hivemapper’s machine learning models and improve its map quality.

Unlike with traditional centralized maps, on Hivemapper, you’re rewarded for your contributions. When you map your surroundings and train Hivemapper’s AI, you earn its native token: $HONEY. Other than it being a sweet reward, $HONEY is also an incentive for you and all other Hivemapper participants to continue building its map for everyone to benefit from. Plus, it’s used to pay for network data.

For more on Hivemapper, read our App Spotlight.

Helium ($HNT, $MOBILE)

You can think of Helium as a decentralized AT&T or T-Mobile. It’s a crowdsourced telecommunications network built on Solana that provides internet and cellphone coverage.

How does it work? Through the use of “Helium Hotspots,” which are like mini cell towers, the community creates a peer-to-peer (p2p) wireless network that powers devices. Thanks to this combination of crowdsourced hardware, community participation, and token incentives, the network is more cost-effective, decentralized, and democratized than traditional telecoms networks.

Want to contribute to Helium? You can buy and host Helium Hotspots to earn tokens in exchange for providing nodes for the network.

Render ($RNDR)

Render Network is a DePIN project that allows you to use your unused GPU power to help others render motion graphics and visual effects. In return, you earn Render’s native utility token (RNDR). Through this collective effort from the community, Render creates a peer-to-peer (p2p) network that allows people to utilize computational power cheaper and faster than with a traditional network.

Why does this matter? Because it helps make rendering and streaming 3D environments and other visual effects easier.

DePIN tokens

In comparison to decentralized finance (DeFi), DePIN is still relatively new so its token ecosystem isn’t as robust. With that said, there are still many notable DePIN tokens, and more are being created every year. Here are some that you should know:

• Filecoin ($FIL)
• Render ($RNDR)
• Helium ($RNT)
• Theta Network ($THETA)
• IOTA ($IOTA)
• Akash Network ($AKT)
• Arweave ($AR)
• Ankr Network ($ANKR)
• Helium Mobile ($MOBILE)
• Hivemapper ($HONEY)
• Storj ($STORJ)
• Helium IOT ($IOT)

How to use DePIN with Phantom

If you want to explore the world of DePIN with Phantom, you have a couple options.

Use DePIN apps

Our in-app browser makes finding and using DePIN apps safe and easy. When you start typing in the search bar, you’ll get vetted recommendations that bring you straight to the official site. This ensures you avoid scam links and only click on official ones. If you want to visit Hivemapper, Helium, or any other DePIN app, just search it in our browser, click on the suggested sites, and try them out.

Swap DePIN tokens

You don’t need to drive around your city, set up hardware, or build out networks to get involved in DePIN. With our Crosschain Swapper, you can swap your SOL, and other tokens, for the DePIN token(s) of your choice. Learn how in our tutorial:

Summary

Like DeFi did with traditional finance, DePIN is revolutionizing traditional infrastructure. Through the use of the blockchain and token rewards, DePIN is organizing and incentivizing people to build out networks that are more open, accessible, and democratized. These networks cover areas such as WiFi, storage, energy grids, weather forecasts, ride sharing services, maps, and more.

Ready to explore the world of DePIN? Download Phantom to get started.

Disclaimer: This guide is strictly for educational purposes only and doesn’t constitute financial or legal advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.