These are the DePIN projects to be seen in 2024.

Integrating blockchain technology with practical, real-world applications is becoming increasingly important. Indeed, Decentralized Physical Infrastructure (DePIN) is a growing sector. About 650 new projects have been launched, drawing Deepin's market capitalization to around $20 billion and generating an estimated $15 million in annual chain revenue.

The growing interest in DPin reflects its potential to transform traditional systems by democratizing essential services and fostering community-based solutions.

DePIN's promise to disrupt monopolies

DPin is at the forefront of marrying the decentralized ethos of cryptocurrency with the infrastructure needs of the physical world. From Wi-Fi and transportation to data storage and power, DePIN sets the stage for blockchain's transparency, efficiency and security to reach the real world. This change aims to improve blockchain services and provide tangible benefits and rewards to users.

It should be noted that this sector is currently dominated by the three largest and most prominent technology companies, Microsoft, Google and Amazon. Therefore, forming partnerships, developing business and generating organic demand can be more challenging in this crypto environment than others. Therefore, success largely depends on Big Tech's tendency to increase censorship.

Still, crypto infrastructure is expected to grow exponentially in regions where governments crack down on dissent and tighten controls on free speech. This situation presents significant opportunities to serve gray market customers.

“DePIN will be one of the most important areas of crypto investment for the next decade. Storage solutions, decentralized wireless networks and other hardware networks are critical to the long-term viability of the industry. They can also disrupt a huge set of monopolies. Old cloud infrastructure is worth $5 trillion worldwide. It's a global market value sector,” Mesari analysts wrote.

Indeed, the allure of the DP lies in its promise to decentralize control of resources along with infrastructure development. It leverages the potential of the Internet of Things (IoT) by integrating blockchain and community-driven incentives. Basically, DePIN aggregates the necessary computing and storage capacities from various sources and makes them readily available to developers and their applications.

Shane Holmberg, chief operating officer of Moon Strategy, told BEncrypto that such a framework can reduce operational costs, scale efficiently and provide a robust alternative to traditional infrastructure models.

“By decentralizing resources, it enables the widespread application of innovative technologies, even in remote or underdeveloped areas. This global reach allows users from all corners of the world to participate and benefit from decentralized technologies and foster a more inclusive digital environment,” said Holmberg.

This approach is gaining traction among crypto investors who see it as a scalable solution to global infrastructure challenges. DPin aims to transform public infrastructure into a more inclusive, efficient and participatory system using blockchain.

DePIN's impact on Web3 is profound. It provides a decentralized model that eases bottlenecks and promotes a more secure platform for decentralized applications (dApps). By improving resource availability and global access, DePIN promotes the widespread adoption of innovative technologies, particularly in underserved regions.

“DePIN changes traditional infrastructure systems by decentralizing control, shifting it from large corporations to a community of individual contributors. Similar to the proof-of-concept network in mining, each participant contributes resources and has a say in the system proportional to their investment,” added Holmberg.

Top DePIN projects to watch out for

Developing effective incentive models, navigating extended growth, and competing with established Web2 giants can be challenging. However, the benefits of community control, fair pricing and incentives make a compelling case for DePIN's transformative power.

“Things like file storage, wireless access, and cloud computing require a lot of capital expenditure and operational headaches, and it's a non-trivial challenge to grow a hardware network to a viable level. Mesari says tokens are effective in fueling the growth of these networks by coordinating decentralized hardware investment at scale. Analysts emphasized.

In fact, DP projects like Rowan Energy are pioneering sustainable practices. It uses blockchain for clean energy production and consumption in the energy sector. This innovative approach supports the global pursuit of net-zero emissions and promotes the adoption of renewable energy through mechanisms such as NFT carbon offset certificates.

The wireless sector is also undergoing a revolution with projects such as the Helium Network. It aims to disrupt traditional communication models by rewarding providers with cryptocurrency. This model shows how DePIN can provide equitable solutions in communication, a significant shift away from centralized providers.

“Helium Networks is challenging the dominance of large network providers. In an intelligent multi-token system, each token plays a critical role in managing network resources and compensating providers. Users burn the HNT token to access communication services, and the mobile token is the lifeblood of the Helium 5G project,” explained Holmberg.

Meanwhile, decentralized storage networks like Filecoin are redefining data storage and cloud computing. By ensuring reliable, efficient and affordable storage solutions, these projects highlight Depp's ability to challenge and perhaps even surpass traditional cloud services.

“Without data, AI cannot learn. If the data becomes corrupted due to a single point of failure, or if the central data storage entity changes its access rights or value, it ceases to be a legitimate AI dependent on that storage. It's an existential risk, which is why I argue that AIs should use a decentralized storage solution,” said Arthur Hayes, co-founder of BitMEX.

Read more: Filecoin (FIL) Price Prediction 2024/2025/2030

Despite the challenges, DP's projects represent a strong step towards more democratic, efficient and sustainable infrastructure solutions. This journey of change is about the advancement of technology and a rethinking of the fundamental systems that support the digital and physical world.