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DePIN

What if the infrastructure you depend on was owned by the people who use it?

The D in ABCD. 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.

Two Value Propositions​

Frictionless Trade​

Every intermediary between a physical event and an economic outcome is friction. DePIN removes layers:

TraditionalDePINFriction Removed
Sensor → Company → API → CustomerSensor → Oracle → SettlementData broker, API licensing
Driver → Fleet company → InsuranceDriver → Vehicle data → Smart contractFleet middleman, claims processing
Solar panel → Utility → Grid → BuyerSolar panel → Token → Peer buyerUtility monopoly, billing overhead
Weather station → Met office → ResellerWeather station → Network → Direct feedData aggregator, redistribution fees

Efficient Operations​

Community-contributed hardware shifts capex to the edges. The network scales with demand, not ahead of it:

Centralised ModelDePIN ModelEfficiency Gain
Build data centres, hope for demandContributors add GPUs when demand risesNo stranded capex
Deploy cell towers via carrierCommunity deploys hotspots where neededCoverage follows users
Company-owned sensor fleetOperators own sensors, earn for dataMaintenance distributed
Single vendor, single priceOpen marketplace, price competitionMarket-driven pricing

The ABCD Connection​

AI learns from sensor data
    ↓
Blockchain proves contributions and ownership
    ↓
Crypto aligns incentives through tokens
    ↓
DePIN distributes the physical layer
    ↓
Better data feeds back to AI

The DePIN Stack​

┌─────────────────────────────────────────────┐
│           USER-FACING APPS                  │
│    Marketplace, Dashboard, Admin            │
├─────────────────────────────────────────────┤
│           SOFTWARE BACKEND                  │
│    Pricing Oracle, Risk Engine, AI/ML       │
├─────────────────────────────────────────────┤
│           BLOCKCHAIN LAYER                  │
│    Settlement, Governance, Attestation      │
├─────────────────────────────────────────────┤
│           PHYSICAL INFRASTRUCTURE           │
│    Sensors, Hotspots, GPUs, Storage         │
└─────────────────────────────────────────────┘

Infrastructure Types​

TypeWhat It ProvidesExample ProjectsIndustry Impact
ComputeGPU/CPU resourcesRender, io.net, Akash, AethirAI training, rendering, cloud
WirelessConnectivityHelium, XNET, Dabba, WicryptTelecom, public WiFi
SensorsReal-world dataWeatherXM, DIMO, Hivemapper, GEODNETWeather, mobility, mapping, agriculture
StorageData persistenceFilecoin, ArweaveCloud storage, archival
EnergyPower generationSrcful, Daylight, GlowSolar, grid balancing
PositioningLocation precisionGEODNETSurveying, robotics, autonomous vehicles

See DePIN Devices for hardware you can buy and operate.

Sensor → Oracle → VSaaS​

The highest-value DePIN plays combine physical infrastructure with vertical software:

1. DEPLOY SENSORS
   └─► Physical devices capture real-world state

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

The thesis: Own the sensors → own the data → own the predictions → own the workflow.

Vertical Applications​

VerticalDePIN LayerVSaaS Application
MobilityVehicle sensors, GPS, telematicsFleet management, insurance scoring
AgricultureSoil sensors, weather stations, dronesYield prediction, irrigation
EnergySmart meters, solar sensorsGrid management, demand response
PropTechOccupancy sensors, environmental monitorsBuilding management, valuation
LogisticsPackage trackers, cold chain sensorsRoute optimization, compliance
AviationADS-B receivers, GNSS stationsFlight tracking, precision navigation

See Vertical SaaS for software patterns.

Digital Mycelium​

DePIN as digital mycelium: distributed hardware nodes act like fungal threads that move resources and information through an ecosystem.

Mycelium PropertyDePIN Equivalent
InterconnectedNodes form networks across geographies
Resource SharingComputing, storage, bandwidth shared
ResilientNo single point of failure
GrowthSpreads as more participants join
Ecosystem SupportEnables applications on top

Evaluate​

If You Want To...Go Here
Buy DePIN hardwareDePIN Devices
Invest in DePIN projectsDePIN Investment Appraisal
Research tokens and protocolsDePIN Tokens
Understand industry impactIndustries

Resources​

Context​