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A recent report by MV Global highlights the growing prominence of Decentralized Physical Infrastructure Networks (DePINs) as a significant development in Web3 technology. According to the September 5 report, DePINs are poised to become a major use case for Web3, potentially bringing a substantial influx of new users to the cryptocurrency space.
DePINs are blockchain-based protocols designed to decentralize various real-world infrastructures and systems, including communications networks, data storage facilities, and energy markets. The report indicates that the DePIN ecosystem now encompasses over 1,000 projects and holds an aggregate market capitalization exceeding $50 billion.
The technology leverages token incentives and on-chain governance to address longstanding challenges, such as the "cold start problem" faced by resource-intensive networks, and to substantially reduce infrastructure costs. For instance, connectivity protocols like Helium, which focuses on mobile networks, are replacing costly traditional infrastructure through crowdsourced capital expenditure.
Emerging projects within the DePIN space include Destra.network, Chirp, and Andrena, which are advancing decentralized connectivity solutions. Sensor networks, such as Dimo, Hivemapper, and Geodnet, deploy devices in physical locations to gather valuable data. New use cases in decentralized energy storage and marketplaces, such as Daylight, EC3, and Entheos, are also gaining traction.
Additionally, specialized DePIN {blockchain} like Peaq and IoTeX are being developed to address the unique requirements of DePIN projects. The demand for decentralized data storage and compute protocols, driven in part by the needs of artificial intelligence applications, is projected to propel the market to approximately $128 billion by 2028.
The MV Global report underscores that the expansion of connectivity, sensor technologies, and emerging infrastructure primitives such as energy networks demonstrates the substantial real-world impact that DePINs can have on infrastructure development and utilization.
