Why you should be dippin in DePIN !!!

In web2, goods and services found an online market via e-commerce
In web3, networks and communities will find an on-chain market via DePINs

What is DePIN exactly? Read below and spread the sauce 👇

Decentralised Trust: A New Paradigm

In the current era of centralised systems, establishing trust is a time and effort-taking process. Imagine having to traverse through a city centre every time you need to go from Point A to B, encountering long routes, unnecessary stops and delays. This is analogous to the flow of information in centralized systems.

In contrast, decentralised systems allow for direct, credible information flow from point A to B, eliminating unnecessary intermediaries and reducing costs. This efficiency gives businesses and markets using decentralized systems a significant cost advantage over their traditional counterparts.

source: https://www.binance.com/en/feed/post/1032494

Centralized Infrastructure Networks: High Costs and Low NPS

Centralized infrastructure networks historically exhibit a slow and costly expansion, as seen in the gradual rollout of internet coverage, electricity coverage, telecom coverage and more. This slow development, laden with high operational costs, results in elevated prices for consumers and limited accessibility. The focus on maximising shareholder value in these centralised systems often overshadows the essential goal of widespread, affordable service provision, contributing to low Net Promoter Scores (NPS).

The lack of transparency and customer interaction in the centralized model increases these issues. Customers often feel their voices and needs are neglected, leading to a decline in satisfaction. This neglect is evident in the slow expansion of essential services, and low NPS scores of these industries where the emphasis on profit margins hinders the timely & cost-effective deployment of infrastructure.

source: https://www.binance.com/en/feed/post/1032494

What DePIN offers for end-users

In stark contrast, Decentralized Physical Infrastructure Networks (DePIN) offer a more agile and customer-centric approach. By prioritizing customer value and ensuring transparent and direct participation in the expansion of infrastructure, DePIN aims to expedite infrastructure deployment, lower costs, and significantly enhance customer satisfaction, leading to improved NPS scores and low costs across various sectors.

DePIN promises 2 things:

• High efficiency of operations (Low cost)

• More value for the customer (High NPS)

Despite the technical complexities involved, the circumstantial evidence of cheaper networks is compelling. DePIN promises enhanced value for customers and heightened operational efficiency, leading to reduced costs and increased satisfaction in the long run.

For example:

• Helium 5G making data available at 1/6th cost, and

• IPFS reduces the cost of storing data

Value accrual to the Blockchains

Decentralization enables the pooling of resources to build and maintain public networks that prioritize customer value. These networks exist on various blockchains, ensuring transparency and cost-efficient participation. While it’s early to predict the ultimate DePIN chain, the movement towards decentralization is unmistakable.

The chains which are able to host DePIN networks and operate their markets are seeing rising volumes as more and more people participate in the network. Some projects have their own chains to ensure efficient and transparent market dynamics while a lot many are hosted on the ecosystem of L1s, L2s and L0s.

source: https://depin.ninja/analytics

As these networks operate on micro-transactions the demand for block space will spike as consumption spikes on the chains and the value of the DePINs will accrue partially to the chains and the native tokens as well. This makes it a winning narrative for the entire industry from users to producers to protocol owners.

The DePIN Flywheel

The DePIN flywheel represents the continuous value creation and distribution cycle within decentralized networks. As more participants join and contribute to the network, the value and efficiency of the network increase, attracting even more participants and further enhancing the network's value and efficiency

source: https://www.peaq.network/blog/what-are-decentralized-physical-infrastructure-networks-depin

The Expanding Universe of DePIN

Our surroundings are filled with physical networks, from maps and phones to energy grids and cloud networks. These centrally managed networks prioritize shareholder value over accessibility. DePIN encompasses a wide range of networks, including wireless, sensor, compute, and energy networks, with more emerging every day.

DePINs have already showcased promising circumstantial evidence of its potential impact. These initial implementations underscore the potential for enhanced accessibility, reduced costs, and improved customer satisfaction, laying a solid foundation for the widespread adoption and growth of DePIN in various sectors.

• Wireless Communication Networks

  Decentralized wireless communication networks promise affordable and reliable internet access worldwide, forming a grid of connectivity producers, maintainers, and consumers.

  Ex: Helium, Roam, Wifi Dabba and more

• Sensor Networks

  These networks facilitate the collection and sharing of diverse data, from weather to traffic, contributing to a more informed and connected world.

  Ex: Hivemapper, Foam, Planetwatch and more

• Cloud/Computation/Storage Networks

  Decentralized networks in this domain ensure secure and reliable storage and computing power to global users.

  Ex: Akash Network, Filecoin, Theta Network and more

• Energy Networks

  By decentralizing energy networks, we pave the way for a more resilient and sustainable energy grid.

  Ex: Plural Energy, Arkeen and more

• Services Networks

  From taxis to deliveries, decentralized service networks offer a broad spectrum of services, enhancing accessibility and efficiency.

  Ex: Drife, Teleport and more

Conclusion

In this new era, the promise of more value, high operational efficiency, and enhanced customer satisfaction heralds a future where technology serves humanity more equitably and effectively.

References

• Escape Velocity

• Messari

• Peaq Network

• Binance Labs

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