What is DePIN?
Decentralized Public Infrastructure Network (DePIN) is a pioneering concept emerging in the field of crypto which leverages token incentives to underpin the establishment and development of critical physical infrastructure in the real world. This encompasses wireless networks, cloud services, mobility networks, and power grids.
These sectors are traditionally dominated by large, well-capitalized corporations with a near-monopoly in their industry. These centralized entities can dictate prices and services to end-users, as well as stifling both competition and innovation. DePIN leverages the expansive reach of the internet to address these challenges, through the strategic use of blockchain technology and token incentives.
A distinctive hallmark of DePIN is the departure from the conventional centralized marketplace in favour of a decentralized model. This transformation is only possible with active user participation, a strategic manoeuvre which aims to reduce dependence on large entities and instil a framework where the end users have a shared interest in the economy.
In essence, DePIN seeks to usher in a new era by democratizing access to and control over critical infrastructure, fostering a more competitive and innovative landscape for the benefit of users worldwide.The four main sectors currently emerging in DePIN are servers, wireless, sensors and energy networks. Recently, 2 additional subcategories were added: Physical Resource Networks and Digital Resource Networks (PRNs and DRNs).
Physical Resource Networks (PRNs) encourage individuals to set up or utilize location-specific hardware for providing tangible, unique products and services in the real world, such as energy, navigation and connectivity solutions.
In Digital Resource Networks (DRNs), participants run or deploy hardware to provide interchangeable digital resources, like computing power, storage, and bandwidth.
Real-life Use Cases
Looking at contemporary service-based platforms like Wolt and Glovo, we see a model where individuals contribute either physical resources such as transportation or services like food distribution, in return for financial rewards or other benefits. These centralized systems have structured processes for both providers and users to gain membership, maintaining control over the providers' resources during their active engagement.
In contrast to these models, blockchain technology introduces a novel approach which aims to improve on these traditional centralized systems. DePIN promises more flexible, and potentially higher, rewards for service providers through the decentralized and democratic model. This shift towards blockchain-based solutions could significantly transform the service-based sector, offering a more equitable and efficient system for all participants.
How does DePIN work?
DePIN establishes a link between physical facilities and the blockchain. In simple terms, the key participants include a physical facility managed by a provider, middleware facilitating the connection to the blockchain, and a public ledger overseeing remittance. Here's a detailed breakdown:
Physical Infrastructure: The physical facility, ranging from sensors to internet routers or solar panels, is overseen by a private provider. Some protocols provide the facility to participants, and in others providers already possess these facilities before engaging in the DePIN protocol. Similar to the way miners and validators contribute their resources to the blockchain network, with DePIN private providers can contribute their physical facilities to infrastructure networks.
Middleware: The middleware is crucial in bridging the connection between the blockchain and physical infrastructure. Similar to a decentralized oracle network (DON) where our keepers fetch external data and communicate it to the blockchain, middleware collects the relevant data from each private facility and transmits it to the DePIN Network.
- Blockchain System: Data collected by the middleware is sent to the blockchain, which functions as both an administrator and a remittance system for providers and users. Leveraging the information that the middleware provides, protocols on the blockchain allocates demand across providers and calculates the participants rewards based on these activities. Additionally, thanks to the inclusion of a Keeper Staking System, the blockchain ensures fair and secure distribution of rewards to the keepers and providers, based on their contribution to the DePIN network. Rewards can be dispersed in any supported coin or token, offering flexibility and incentivizing participation within the network. On the user's side, the blockchain manages resource procurement, integrating pricing models into the remittance system ensuring prompt charges and payment for each service.
Why Depin is possible with Entangle
Entangle is uniquely positioned with a suite of products that will be transformative in the field of DePIN, bringing new possibilities and enhancements to the DePIN network. Entangle's photon messaging service enables the secure and continuous broadcasting of data through a variety of data feeds. This integration not only connects DePIN with the broader blockchain ecosystem but also introduces new and exciting use cases for the utilization of the data from the physical facilities.
Furthermore, this broadcasting of data attracts new users from different blockchain ecosystems and facilitates easier omnichain integrations and development thanks to the underlying infrastructure. The synergy between Entangle and DePIN promises to revolutionize the way networks interact and function.
Possible integration with Entangle
Entangle has the capabilities of enhancing the Helium ($HNT) network, a decentralized system composed of Helium hotspots. These compact yet potent devices create an IoT LoRaWAN network, capable of connecting a diverse array of sensors and in-house gadgets. The key contribution that Entangle can provide lies in the Universal Price Feeds that are crucial for the Helium network. These feeds can gather and integrate data from various sources, including water or air quality sensors. By implementing Entangle's Photon Messaging Layer, the Helium network's ecosystem will be well positioned for significant improvements and greater efficiency.
Decentralized storage networks offer users on-demand storage space by encouraging providers to supply storage capacity. Initiatives such as Filecoin assert their commitment to enhancing the security and efficiency of the web through a decentralized data storage marketplace, protocol, and cryptocurrency. The Filecoin blockchain maintains a ledger of the storage space provided by each contributor, compensating them with Filecoin rewards. Meanwhile, users pay a fee to lease storage space, ensuring the secure storage of their data and files.
The Render Network is the first decentralized GPU rendering platform, empowering artists to scale GPU rendering work on-demand to high-performance GPU Nodes worldwide. Through a blockchain marketplace for idle GPU computing, the network allows artists to perform next-generation rendering work at fractions of the cost and enhanced scaling with increased speed when compared to the centralized GPU cloud.
With the use of Entangle Universal Data Feeds, Render Network can swiftly get the appropriate GPU data or number of idle GPU units and react appropriately with corresponding data to ensure the maximum efficiency of their network.
IoTeX is on a mission to build a connected world where everyday people will own their data, devices, and identities. Harnessing the power of blockchain, IoTeX will unlock the potential of smart devices/data and empower a new generation of real-world Dapps and digital assets. Pebble is IoTeX’s breakthrough data parsing device, designed from the ground up to work with the IoTeX blockchain. Take real-time control of the data from physical objects and securely track any object on the IoTeX blockchain. Entangle can seamlessly fetch the data collected with Pebble and send it to the smart contract via the Photon Messaging Layer. Further expansion is possible with Universal Data Feeds that can collect the data about the current room temperature (Pebble) and transmit that information to, for example, the AC unit.