DePin Explained! A Deep Dive Into DePin (Decentralized Physical Infrastructure)

So there's this Crypt buzzword going Around recently deepin what is it deepin Refers to infrastructure projects using Tokenization to coordinate and Incentivize their bootstrapping phase Individuals build up the supply of the Infrastructure in a decentralized manner And get rewarded with token incentives The key idea is to flip the traditional Model on its head the traditional way is For corporations in telecommunications Or energy to invest a lot of time and Money into building and maintaining Infrastructure web3 companies try to Outsource this buildup and maintenance Process to a token incentivized Army of Volunteers and monetize later once the Coverage rate is high enough so this is The same liquidity incentive principle Used in other web three sectors such as Defi yield fing play to earn or move to Earn the four categories in deepin are Cloud storage networks so file storage Relational database CDN and VPN networks Wireless networks so 5G sensor networks Interconnected devices and embedded with Sensors that collect real-time data from The physical world such as Maps energy Networks aggregate distributed energy Sources to create a more resilient and Efficient energy grid what are the Benefits of decentralized physical Infrastructure or DM so Deen's declared Goal is to create a more Equitable and

Efficient process to bootstrap Infrastructure networks compared to Legacy companies top- down Capital Intensive approach so if you ask web 3 VCS like multi-coin capital They will extol the following benefits Of the decentralized approach you can Build infrastructure 10 to 100x faster It is better synced to hyper local Market needs it can be far more cost Effective it can be scaled across Jurisdictions in a permissionless way The network is credibly neutral and Collectively owned blockchains support Frictionless micro payments and Integration with defi that is of course The best case scenario what are the Trends and challenges of decentralized Fiscal infrastructure or DM so the Combined market cap cap of the global Top 10 Cloud companies is $5 trillion Not bad if web3 companies could take a Tiny share of that market they would be In fantastic shape so Missori sees Several Trends and challenges in this Sector most people access the internet From a mobile device these days crypto Is the one big exception simply because Much of it hasn't developed a good Mobile interface but to succeed crypto Will have to go mobile eventually Technological trends like AI tools and More capable smartphones Point towards More Mobile Traffic not less with the

Possibility to produce and consume Content in a decentralized way Increasing again AI the demand thereof Will also increase and with the demand To access and store it which concerns Wireless and storage providers so let's Talk about some challenges dpin faces Several challenges explaining why the Sector hasn't really taken off yet for Instance as we will still explore Further the incentive models are highly Dilutive and often sound better than They are in reality the time Horizon to Build applications and demand is Significantly longer than for mere Consumer apps the market is big but Companies compete against web 2 giants Like Amazon Microsoft and Google in Other words disruptive Legacy Competition will take a lot more effort And professionalism than in purely Retail facing sectors of web 3 like Gaming what is the flywheel of Decentralized physical infrastructure or Deen so web3 enthusiasts point out that Tokenization allows globally dist Attributed individuals to collectively Bootstrap Network in a permissionless And trustless manner ideally the costs Of building the network are born by and Distributed among the supply side Participants usually retail who get paid Token incentives to bootstrap the Network once the network has built an

Infrastructure base it attracts users These users pay to use the network and Boost further supply side growth so in The best case scenario this kicks off The Virtuous cycle of more demand Fueling more Supply which is incentified By token rewards that grow in value Thanks to Growing demand supporters Argue that only tokenization via Blockchains makes the incentive scheme Possible so is the decentralized Physical infrastructure sector just a Big Ponzi or are there real use cases And demand as so often it depends as Good as some of these projects may sound You should ask yourself can this project Really compete with established web3 Companies and can it earn Revenue to Sustain massive token valuations the Deepin space is worth monitoring but be Careful about believing the hype and as Always do your own research and if You're interested in looking at some Deepend projects make sure to check out


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