DePIN
Decentralized Physical Infrastructure Networks use blockchain and tokens to incentivize people to build, own, and operate real-world infrastructure. Instead of a single company owning everything, many participants contribute hardware and earn rewards—creating shared infrastructure with lower costs and fewer single points of failure.
Why DePIN Matters
These networks turn physical systems into open platforms that anyone can join, extend, or build on. They make infrastructure more transparent and programmable, enabling new business models across mobility, telecommunications, cloud, and energy.
The ABCD connection:
- A (AI) learns from sensor data
- B (Blockchain) proves contributions and ownership
- C (Crypto) aligns incentives through tokens
- D (DePIN) distributes the physical layer
Core Components
| Layer | What It Does | Examples |
|---|---|---|
| Physical Nodes | Devices that provide real-world services | Hotspots, GPUs, sensors, batteries |
| Blockchain | Tracks contributions, usage, and rewards | Solana, Polygon, custom chains |
| Token Incentives | Pays operators, aligns behavior, funds growth | Utility tokens, governance tokens |
| Off-chain Services | Connects messy real-world events to on-chain state | Oracles, routing, data processing |
How To Use This Section
| If You Want To... | Go Here |
|---|---|
| Invest in DePIN projects | Investment Thesis / Analysis |
| Research tokens & protocols | DePIN Tokens |
| Build DePIN infrastructure | Architecture Patterns |
| Evaluate project viability | Project Validation |
| Understand industry impact | Industries |
| Learn the fundamentals | Education |
Architecture Patterns
The DePIN Stack
┌─────────────────────────────────────────────┐
│ USER-FACING APPS │
│ Marketplace, Collector App, Admin │
├─────────────────────────────────────────────┤
│ SOFTWARE BACKEND │
│ Inventory, Pricing Oracle, Risk Engine │
├─────────────────────────────────────────────┤
│ BLOCKCHAIN LAYER │
│ NFT Minting, Settlement, Governance │
├─────────────────────────────────────────────┤
│ PHYSICAL INFRASTRUCTURE │
│ Sensors, Hotspots, GPUs, Storage │
└─────────────────────────────────────────────┘
Infrastructure Types
| Type | What It Provides | Example Projects |
|---|---|---|
| Compute | GPU/CPU resources | Render, IO Net, Akash |
| Wireless | Connectivity | Helium, Dabba, Wicrypt |
| Storage | Data persistence | Filecoin, Arweave |
| Sensors | Real-world data | WeatherXM, DIMO, Hivemapper |
| Energy | Power generation/storage | Glow, Power Ledger |
Deep Dives
- Blockchain Nodes - Node sales and operation
- AI Compute - Decentralized GPU networks
- Extended Reality - Spatial computing infrastructure
Project Validation
Use these criteria to evaluate a DePIN project's viability (minimum 75/100 to pass):
| Category | Weight | What To Check |
|---|---|---|
| Problem-Solution Fit | 15 | Is there real demand? |
| Competitor Analysis | 10 | What's the differentiation? |
| Revenue Model | 15 | How does it make money? |
| Hardware Feasibility | 15 | Can the network actually scale? |
| Team & Funding | 15 | Who's behind it? |
| Tokenomics | 15 | Are incentives aligned? |
| Roadmap | 10 | Are milestones achievable? |
| Transparency | 5 | Can you verify claims? |
See DePIN Hub verification criteria for the full framework.
Digital Mycelium
DePIN as "digital mycelium": distributed hardware nodes act like fungal threads that move resources and information through an ecosystem.
| Mycelium Property | DePIN Equivalent |
|---|---|
| Interconnected | Nodes form networks across geographies |
| Resource Sharing | Computing, storage, bandwidth shared |
| Resilient | No single point of failure |
| Growth | Spreads as more participants join |
| Ecosystem Support | Enables applications on top |
"Just as underground mycelium networks enable the forest canopy to extend high into the atmosphere, so too will DePIN bring nutrients from the ground up while memecoins bring attention from the atmosphere to build a healthy ecosystem in between."
Education
Become a DePIN Engineer:
See DePIN Hub Academy for full curriculum.
DePIN + VSaaS Integration
The highest-value DePIN plays combine physical infrastructure with vertical software:
┌─────────────────────────────────────────────────────────────┐
│ VSAAS APPLICATION │
│ Workflow AI, dashboards, customer-facing tools │
├─────────────────────────────────────────────────────────────┤
│ AI/ML LAYER │
│ Models trained on DePIN-captured data │
├─────────────────────────────────────────────────────────────┤
│ BLOCKCHAIN LAYER │
│ Ownership, payments, attestation, oracles │
├─────────────────────────────────────────────────────────────┤
│ DEPIN LAYER │
│ Sensors, devices, physical infrastructure │
└─────────────────────────────────────────────────────────────┘
The Compounding Advantage
| Layer | What It Provides | Moat Strength |
|---|---|---|
| DePIN | Unique data others can't access | Very High |
| Blockchain | Immutable records, programmable payments | High |
| AI/ML | Predictions improve with more data | Compounding |
| VSaaS | Workflow capture, customer lock-in | High |
The thesis: Own the sensors → own the data → own the predictions → own the workflow.
Vertical Examples
| Vertical | DePIN Layer | VSaaS Application |
|---|---|---|
| PropTech/CRE | Occupancy sensors, smart locks, environmental monitors | Building management, leasing automation, valuation |
| Mobility | Vehicle sensors, GPS, telematics | Fleet management, insurance scoring, maintenance |
| Agriculture | Soil sensors, weather stations, drones | Yield prediction, irrigation, crop management |
| Energy | Smart meters, battery monitors, solar sensors | Grid management, trading, demand response |
| Logistics | Package trackers, warehouse sensors, cold chain | Route optimization, inventory, compliance |
Build Pattern: Sensor → Oracle → VSaaS
1. DEPLOY SENSORS
└─► Physical devices capture real-world state
└─► Continuous data stream begins
2. CREATE ORACLES
└─► Aggregate sensor data on-chain
└─► Cryptographic attestation of readings
3. BUILD AI LAYER
└─► Train models on proprietary sensor data
└─► Generate predictions, recommendations
4. DELIVER VSAAS
└─► Package insights into workflow tools
└─► Charge for outcomes, not data access
5. COMPOUND
└─► More users → more sensors → better models → stickier VSaaS
See Vertical SaaS for software patterns and Real Estate Platform for PropTech application.
Related Decision Trees
- Agent Development Platform
- Blockchain Architecture
- Gaming Stack
- Vertical SaaS - Software layer patterns
Resources
Analysis & Diagrams:
Reading: