Rise of the DePIN Contenders

Imagine a world where the Internet and cloud storage aren't owned by faceless and profit greedy corporations by you and your fellow peers. That is the gist behind the concept of peer to peer computing. Believe it or not, the original plan of the World Wide Web was actually designed to be peer to peer rather than being monopolized by a handful of tech corporations.

Gaining back control over peer to peer computing is broadly what Web3 aims to achieve and DePIN (Decentralized Physical Infrastructure Networks) is one of the growing sectors. DePIN isn't just a buzzword; but a foundational shift in how we build and maintain the physical infrastructure that powers our digital lives. If you are concerned about detrimental social issues like data privacy and security, cyberbullying and content moderation, then you should pay heed to the emergence of DePIN.

At its core, DePIN leverages blockchain technology and token incentives to encourage individuals and communities to deploy and maintain real-world hardware. Instead of a single company investing billions in cell towers or data centers, DePIN projects crowd-source the effort, rewarding participants with cryptocurrency for contributing resources like internet bandwidth, storage space, or even sensor data. Think of it as a global, decentralized co-op for critical infrastructure.

How DePIN Is Already Benefiting Users

Projects like Helium have already demonstrated success by building vast, community-owned wireless networks. As for decentralized cloud storages that advocate for better data privacy, projects like Filecoin and Arweave are challenging giants like Amazon S3. Even GPU rendering power is being democratized through networks like Render. These projects are not theoretical and they are live networks that are growing and providing real essential computing services.

So, what are the key factors propelling DePIN from a niche concept to a mainstream disruptor?

1. Cost Efficiency & Scalability:
   By distributing the capital expenditure and operational costs across many peers, DePINs can build out infrastructure far more cheaply and rapidly than traditional companies, passing savings onto users.
2. Community Ownership & Resilience:
   Networks are owned and operated by their users, making them inherently more resilient to single points of failure, censorship, and corporate control. It reduces the power control from centralized entities to the communities' peers.
3. Token Incentives:
   Crypto rewards provide a continuous motivation for individuals to deploy hardware, maintain uptime, and contribute resources, creating a virtuous cycle of growth. Crypto therefore holds the potential to go beyond as just a tool for wealth generation.
4. Innovation & Specialization:
   The decentralized model fosters a bottom-up approach, allowing for specialized networks (e.g., for specific IoT devices or energy grids) to be deployed quickly without needing massive upfront investment. During these times when real estate and rent is skyrocketing, imagine the vast benefits of being able to power a small community of cheap and affordable housing that is not controlled by the government and corporations.
5. Data Sovereignty & Privacy:
   Many DePINs are designed with privacy in mind, giving users more control over their data by distributing it or encrypting it, rather than funneling it through a central server that is controlled by a handful of elites.

Web3 Onboarding You Can Try Now

DePIN (Decentralized Physical Infrastructure Networks) can feel more "real" because it involves physical hardware and physical activities like driving, walking or just having Wi-Fi. It can be an exciting venture particularly for the techy individual.

Nevertheless, you should check what is the expected ROI (Return on Investment) before buying a hardware that could cost hundreds of dollars. You should also scan community sites like Discord and Reddit to see how long it takes for the average user to earn back upfront costs. Many DePIN projects like Helium and Hivemapper reward more if you live in a high-demand city, which is likely to be in the US. You should also pay attention to the privacy policy of the projects as DePIN involves sharing data such as your location, Wi-Fi signal or driving routes.

In the Web3 industry, we use the acronym 'DYOR' a lot, which simply means 'Do Your Own Research'. Anyone who blindly invest into a crypto with nothing more than just "hopeful" feeling, will likely gain nothing in the end.

If you reside outside of US, you can try these DePIN projects, even if it is just for exploratory and research purposes:

• Grass.io
  Grass is a crypto project developed by Wynd Network that allows users to monetize their unused network resources by adding their internet-connected devices to the network. The project aims to provide a way for individuals to sell their unused internet bandwidth to carefully vetted companies. You can get started by simply downloading their app.
• Filecoin.io
  If you have a PC with a lot of extra hard disk space, you can rent it out to the world. If you are not a very techy kind of person, you can start with the beginner-friendly Lighthouse software powered by IPFS (i.e. the open protocol that powers data sharing over a decentralized network). If you are interested to dive deeper into Filecoin, you can stake your FIL crypto or join Filecoin Orbit, a massive global ambassador program.

DePIN is effectively turning capital expenditure into operational expenditure for its users. Though it is still in its early stages, it is silently building the backbone of Web3. The technology promises a future where essential digital services are more robust, affordable, and truly decentralized.