DePin, as a decentralized physical infrastructure, makes it easier to obtain funds and growth through the token economy model, but most DePin projects are not very "decentralized" . Investors may end up finding that what they invest in looks more like Internet companies.
The meaning, concepts and categories of DePin
DePin: Decentralized Physical Infrastructure. Translated to decentralized physical infrastructure. This word has been mentioned frequently in recent times, and some say it is one of the main narratives of the next cryptocurrency cycle. This is of course a great thing, because it means that the W blockchain is entering the physical network of the real world, and it also means that the development of Web3 has reached a new stage.
The Concept of DePin
The core idea behind DePin is to disrupt traditional infrastructure models. Traditionally, companies in the networking, telecommunications or energy sectors invest a lot of time and money into infrastructure. However, the Web3 company aims to outsource these construction and maintenance tasks to a decentralized army of volunteers incentivized by tokens and monetize the network once the network is widespread enough.
DePin's Category
From the analysis of the current DePin project and possible future directions, DePin can be roughly divided into these four aspects:
Storage network, used for file storage, relational databases, CDN and VPN networks, such as Filecoin, SubSpace, BitTorrent, etc.;
Wireless network, 5G, WiFi network, etc.; such as Helium, XNET
Internet of Things, sensors for real-time data collection Networks, map applications, etc., such as HiveMapper, DIMO network;
Energy network, aggregate distributed energy resources to create a flexible and efficient power grids, such as GreenPower Network
Among them, the one that developed earlier and has relatively mature technology is the storage network. This is because the storage network The problem of storage proof has been basically solved in cryptography, but other networks still have a long way to go in terms of decentralized proof and verification.
What kind of Web3 project is DePin
Judging from most of the current DePin projects , it can be said:
DePin refers to the use of tokenization to coordinate and incentivize infrastructure projects in the startup phase. Individuals contribute to the construction of infrastructure in a decentralized manner and receive rewards in the form of tokens.
Please note that the emphasis here is on using tokenization to coordinate and incentivize. There was no mention of blockchain or decentralization. This is because most DePin projects currently only use blockchain and smart contracts to distribute, manage and trade tokens, and do not use blockchain or smart contracts to automatically run and govern projects. But we cannot think that DePin is not a Web3 project because of this. In fact, it is very Web3. It has token incentives, it needs to build a community, and it needs users to participate in jointly building the network.
Through token incentives, DePin has great advantages compared with traditional Internet companies in the early development stages of the project, because through the token and incentive model , which establishes a fairer and more efficient infrastructure launch process. As a result, the DePin project could:
Build infrastructure 10 to 100 times faster than traditional ways times
better in line with local market needs.
Cost-effective and scalable across different jurisdictions.
Have credible neutrality and collective ownership.
Supports smoother micropayments and integration with DeFi.
But at the same time, we should also see that the new DePin projects currently emerging are designed to integrate with real-world operations. , its blockchain and decentralized attributes have been weakened. The traditional blockchain focuses on complete open source, complete community governance, foundation operations, etc. have all been weakened. To put it bluntly, most DePin projects have stronger traditional Internet attributes. They give profits to the community, finance through token models, and build networks. However, the operation of the network cannot be completely decentralized. The continued operation of the project side and Management appears to be crucial. On the other hand, investors in DePin may initially feel that it is no different from other Web3 projects, but over time, they may find that it is actually a type of Internet project for investment.
Of course, there is also a type of project in the DePin track that is different. They are completely open source, decentralized, and can achieve community management. These are basically storage projects because they are technically feasible. I've found this out a3a87785a600e757090930903321383f965eefe0c053b6585c1889d8b32e2&scene= 21#wechat_redirect">[Blockchain Random Thoughts] Three forms of mining: Mining/Farming/Staking It is also mentioned that currently only decentralization can be achieved Valid PoW for specific zero-knowledge proof calculations of verification, and for PoC, only PoC that can achieve decentralized storage proof verification. To decentralize DePin, it essentially needs to take the path of effective PoW or PoC.
DePin’s challenges and development trends
DePin’s generation Compared with the traditional Internet, the financing threshold of tokenization is greatly lowered, and it is almost a permissionless network startup. Moreover, ideally, the cost is borne by the supply-side participants, who are compensated through token incentives. As the network grows, it attracts more users, potentially creating a virtuous cycle of demand and supply.
But on the other hand, because the financing threshold has been greatly reduced, DePin projects are also a mixed bag, and after a lot of turmoil, most of them will die on the beach. , and it is conceivable that its elimination rate will be higher than that of traditional Internet startup companies.
After the launch of the network, the DePin project will not only have to face competition from peers, but also competition from traditional Internet companies, including Google, which has formed an oligarch. Facebook, Amazon, Microsoft, OpenAI and many more. This is because most projects that cannot implement effective PoW and PoC actually rely on the project side to operate. In fact, it is a company that integrates the concept of Web3, rather than a community-governed decentralized project. In addition, a certain degree of decentralization may also bring higher costs in some aspects. The success of the project also depends on the development speed of the project, community consensus, and the real value brought by the project.
For the development of the DePin project, you can consider paying attention to the following aspects:
< li>Can this project be decentralized? If so, it will be very different from traditional companies; it can be cross-border and resist censorship. Features such as these will naturally have their application scenarios;
Does this project solve practical problems, especially when these problems are centralized? Is it difficult to solve it under the company model?
Can this project be open source to a greater extent? If so, we will support the project team. dependence will be reduced, especially whether the node part can be open source. If the node part can be open source, there will be many more ways for community participation, including developer participation;
What is the governance model of this project? Or what is the evolutionary path of governance? A DePin project should expose its governance model to a certain extent and be able to gradually evolve toward full decentralization.
DePin is one of the development paths of Web3
How to develop from Web2 to Web3? This is a process of continuous exploration. Blockchain fundamentalists are more interested in features such as decentralization and trustlessness. But the road is always twists and turns. The implementation technology and network construction of Web2 itself are achieved on the basis of a certain degree of centralization. In the process from Web2 to Web3, it must not be possible to jump directly from centralization to complete decentralization, especially for infrastructure construction.
Therefore, the combination of centralization and decentralization is an inevitable development path. This is a process of continuous innovation, compromise, adaptation, and development. If DePin can gradually transfer the existing physical network from a centralized model to a partially decentralized model in this process, it will be a huge success.
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