Cryptocurrencies

Exploring the DePIN Ecosystem: A Comprehensive Guide for Crypto Enthusiasts Eyeing the Potential Airdrop

A decentralized physical infrastructure network (DePIN) is an emerging trend and use case of blockchain technology in 2024.

What is DePIN?

Real World Assets (RWAs) involve tokenizing physical assets like real estate, luxury items, commodities, and government treasuries.

Read: Real World Assets Tokenization – RWA Crypto Tokens With Potential Airdrops

DePINs are blockchain-based projects that use technology to operate physical infrastructures such as energy grids, mobile networks, telecommunications, sensors, cloud networks, and file-sharing systems. Unlike RWAs, these infrastructures are not tokenized. Instead, blockchain and cryptocurrencies incentivize those who run DePINs, which are typically peer-to-peer networks.

According to developers, DePINs offer advantages over traditional entities due to the costliness of centralized entities. This can lead to higher consumer costs, potential corruption, and decreased innovation from lack of competition.

How DePin Started

In 2009, the InterPlanetary File System (IPFS) was launched to keep copies of files in multiple locations. In 2014, Filecoin incentivized miners with extra storage to rent it out and earn $FIL, Filecoin’s token, making it the first DePIN project.

Pros and Cons of DePIN

Pros:

Decentralization avoids service price manipulation by a central entity.
Services are cheaper as infrastructures are maintained by participants.
Potential downtimes and cyber-attacks are reduced, with transactions recorded permanently.

Cons:

Building and maintaining a DePIN require significant funds, including participant incentives.
Developers must ensure that user fees cover incentivizing network participants.

DePIN Ecosystem: Potential Airdrops

Hivemapper: A web mapping platform similar to Google Maps.
Helium: A decentralized wireless network using a proof-of-coverage mechanism.
DIMO: An open platform making cars smart and programmable.
Nodle: Using smartphones as nodes to create a trust network.
FRYS: Aiming to be a “decentralized network of decentralized networks.”

This article is published on BitPinas: DePIN Ecosystem and Guide Potential Airdrop

Disclaimer:

Before investing in any cryptocurrency, conduct your own due diligence and seek professional advice. BitPinas provides content for informational purposes only and does not constitute investment advice. Your actions are your responsibility, and this website is not liable for any losses or gains.

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