As markets shift back into risk-on sentiment in anticipation of a crypto bull run, decentralized physical infrastructure has emerged as a major narrative, but what is DePIN? And which DePIN crypto to watch in March 2024?
Bitcoin democratized access to digital finance, creating a global e-money where anyone can transact any time of the day – offering a way of banking the unbanked.
With trillions now transacted every year across the Bitcoin network, it remains revolutionary in mainstreaming the adoption of blockchain technology and has laid the foundation for innovative developers to tackle even more pressing real-world problems.
These three narratives will print many millionaires this bull run:
• AI
• Gaming
• DePinIf you aren’t deep in these narratives, it’s time to start. I may have an Top Three AI Cryptos video coming tomorrow 👀
— Lady of Crypto (@LadyofCrypto1) March 18, 2024
As blockchain finds adoption and more users gravitate to trustless networks, it is not a long shot to imagine a world where your internet connection, electricity grid, or even transportation networks will all rely on crypto.
If you can picture this world, then that’s precisely what proponents of Decentralized Physical Infrastructure Networks (DePINs) are looking to achieve in the not-so-distant future.
So, like you and I, the question everyone wants answered is this: What is DePIN? And which DePIN crypto to buy?
What is DePIN?
DePIN stands for decentralized physical infrastructure and conceptualizes the idea that the everyday infrastructure that enables our lives could be scaled more efficiently through decentralized digital economies.
To simplify this idea, you first have to look at DePINs as a solution that allows people to build and manage physical infrastructure more efficiently.
Take for example cellphone infrastructure, to provide coverage over a new area, a centralized telecoms company has to physically invest in the land, licenses, and equipment needed to roll out coverage.
In a DePIN model, the roll-out would be handled by individuals – incentivized to invest and set up the infrastructure themselves by passive earning potential.
Looking at it might be difficult, but integrating the robustness and global nature of blockchain creates a reliable and transparent alternative.
Like Bitcoin, the idea behind DePIN is to eliminate the middleman and other bureaucratic layers that often reduce efficiency while benefiting the public – similar to the emerging gig economy on platforms like Deliveroo and Fiverr.
Accordingly, DePIN solutions are decentralized, meaning no single entity controls the network. The community is responsible for contributing resources and receiving rewards in crypto for their participation.
DePIN platforms offer the following benefits:
- Better efficiency since they can streamline infrastructure management and, most importantly, reduce operating costs.
- Better accessibility since the blockchain powers the underlying platform. Accordingly, anyone, anywhere in the world, can access resources contributed by the community.
- Since the blockchain is open and relies on a community of validators distributed across various geographies, there is a higher level of transparency and security.
- Increased democracy, with the physical infrastructure we all rely on being transitioned into the hands of the many.
3 DePIN Crypto Projects to Watch In March 2024
Now that we have established the overarching concept of DePIN, let’s get to the money – here are the top projects making waves inDePin in March 2024:
DePIN Crypto #3 – Theta Network (THETA)
(Source)
Theta Network is building a YouTube competitor built on the blockchain. The platform is a video streaming network offering a higher level of reliability and security in a key infrastructural development for Web3.
To contribute to the network, community members share unused bandwidth for streaming and receive THETA tokens for contributing.
Bandwidth delivered allows content creators to stream to a global audience – however, they need THETA to optimize the delivery of their videos.
DePIN Crypto #2 – Render Network (RNDR)
(RNDRUSDT)
With the rise of artificial intelligence (AI), Render is positioning itself as a go-to decentralized cloud rendering service for artists and studios globally.
In real terms, Render is a network that enables users to rent out their spare GPU capacity to earn RNDR tokens, in a move aiming to meet the burgeoning demands of the emerging generative AI industry.
At the heart of Render is their native RNDR token, which is used to reward users supplying extra computing power – platform users also pay using RNDR, allowing them to render complex graphics.
DePIN Crypto #1 – Filecoin (FIL)
(Source)
Filecoin is a popular DePIN project, which has cemented major market position in recent years, with a growing network of valuable partners and ever-expanding ecosystem base.
Central to the platform is a decentralized storage system, this enables users to simply rent out their unused storage space to keep the network running in exchange for their participation, they earn FIL. Those who choose to store assets have to pay using the token.
This creates a highly scalable decentralized storage network as an alternative to meet the exponentially growing needs of cloud data centers globally.
The Bottom Line: DePIN Crypto – A Work In Progress
The idea of democratizing physical infrastructure, essentially digitizing them and making these solutions public, is still being worked on.
However, DePINs hold immense potential, especially regarding security, accessibility, and end-user affordability. As the sphere evolves, new projects like eTukTuk, for instance, are leaving a mark.
Over time, and as they mature, they could significantly shape a more efficient, accessible, and transparent future.
Explore: 3 No-Brainer DePIN Crypto Projects to Watch Out For
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
