DePIN (Decentralized Physical Infrastructure Networks) represents a new wave of projects integrating blockchain with real-world infrastructure. By combining blockchain technology with physical hardware, DePIN enables shared ownership, governance, and operation of infrastructure systems. Participants provide valuable resources like bandwidth, energy, or storage, which are collectively utilized across the network.

This model promotes transparency, decentralization, and verifiability, ultimately improving efficiency, accessibility, and trust in infrastructure development and management. Traditionally, this sector has been dominated by large corporations with substantial financial resources. DePINs seek to challenge this centralized model by fostering a decentralized system driven by individual participation.

1. Components of DePIN

• Blockchain as the Foundation: Blockchain technology forms the backbone of DePINs, ensuring a secure, transparent, and verifiable system for tracking contributions, managing token rewards, and facilitating decentralized governance.
  

• Tokenized Incentives: DePIN networks utilize cryptocurrency tokens to incentivize individuals who contribute physical resources to the infrastructure. Participants may be rewarded for deploying wireless nodes to enhance network coverage or sharing excess storage capacity to support decentralized cloud services.

• Decentralized Structure:  They leverage cryptoeconomic principles to encourage individuals to contribute underutilized physical and hardware resources to build a more transparent, verifiable, decentralized infrastructure. These networks promote collective ownership and prioritize distributed systems, offering an alternative to centralized market structures.

The industry has significant growth potential, driven by its vast total addressable market and its capacity to expand infrastructure networks through decentralized, bottom-up strategies. Many view DePIN as a fundamental shift in the global allocation of physical and digital resources, offering a transformative model for scaling large-scale infrastructure.

2. What Problem Does DePIN Solve? 

Decentralized Physical Infrastructure Networks (DePIN) offer a solution to the inefficiencies, high costs, and centralization challenges that traditional infrastructure systems face. Using blockchain technology and token-based incentives, DePIN facilitates a more cost-effective and scalable approach to infrastructure deployment through community-driven participation.

Unlike conventional models that rely on centralized control, DePIN distributes ownership and operational responsibilities among multiple stakeholders, enhancing network resilience and transparency. This model also improves resource efficiency by allowing individuals to contribute and monetize underutilized infrastructure, expanding access to services in underserved regions. 

Additionally, DePIN minimizes reliance on intermediaries by enabling trustless coordination through smart contracts. Participants who support the network by contributing resources or services are rewarded with fees, typically tokens, fostering a mutually beneficial and sustainable ecosystem. 

A prime example is the dominance of centralized cloud providers such as Amazon Web Services and Google Cloud, which have long controlled large-scale computing infrastructure.

However, the emergence of decentralized models has introduced a two-sided marketplace where resource suppliers are incentivized to contribute their idle computing power. Adopting a decentralized network enhances both efficiency and security in cloud computing. As more participants join, the collective processing power scales dynamically, seamlessly adapting to changing demand. Prominent decentralized computing solutions include Akash Network and Bittensor.

3. Current Market State

• The DePIN market has expanded significantly, reaching $21B, a notable increase from $5 billion three years ago. While the current valuation reflects broader market downturns, the sector previously peaked at $50B.

• DePIN projects have also surged to 2,880, an impressive rise from fewer than 100 in 2022 and surpassing current market sentiment.

• Additionally, crypto revenue within the sector has grown 100-fold since 2022, further highlighting its rapid expansion.

•  The ecosystem boasts over 16M active nodes contributing to network development and operations. 

According to Token Metrics, Bittensor is the leading project in the DePin space regarding market capitalization, followed by Render, The Graph, etc. 

These indicators collectively highlight the rapid expansion of the DePIN sector, demonstrating its increasing adoption and resilience despite market fluctuations. The sector's strong momentum reflects the rising number of projects, growing market valuation, and substantial increase in network momentum.

As decentralized infrastructure continues to gain traction, the demand for scalable, efficient, and community-driven solutions is expected to drive further innovation and investment. With ongoing advancements in blockchain technology and the increasing participation of node operators, the DePIN ecosystem is poised for sustained growth, reinforcing its role as a transformative force in decentralized infrastructure development.

4. Sector

DePIN encompasses multiple sectors, each contributing to the decentralization of network infrastructure and supporting various use cases. As a broad and evolving field, DePIN spans diverse markets and can be further divided into specialized sub-sectors, each playing a distinct role in advancing decentralized infrastructure solutions.

5. DePIN Chains

Several blockchain networks have been purposefully developed in the rapidly evolving DePIN ecosystem to support and scale DePIN-specific applications. These platforms combine blockchain technology's decentralized, trustless architecture with real-world infrastructure, creating a powerful foundation for bridging the digital and physical economies. 

•  Enable secure, transparent interactions between machines, vehicles, and devices.

• Allow onboarding of physical assets (e.g., sensors, vehicles, machines) onto the blockchain.

• Promote efficiency, interoperability, ownership, and monetization across industries.

• Key sectors impacted include transportation, energy, supply chain, and telecom.

• Notable platforms: Peaq, IoTeX, and even Solana host DePIN projects.

5.1. Peaq

Peaq is a purpose-built Layer 1 blockchain designed to support and optimize Decentralized Physical Infrastructure Networks (DePINs) and Machine Real-World Assets. The platform offers developers flexibility through support for EVM-compatible (Solidity) and WASM-based (Rust) smart contracts.

Peaq's infrastructure includes a comprehensive suite of modular DePIN functions, enabling developers to integrate essential capabilities into their decentralized applications easily.

These functions include self-sovereign machine identities, role-based access control, data validation, automated machine payments, decentralized storage, data indexing, and autonomous AI agents. This robust feature set streamlines the development and deployment of DePINs and machine-centric dApps.

Peaq has experienced significant user adoption and machine integration growth in recent months. The network currently supports over 2.6M machines and connected devices. More than 50 DePIN projects are actively building on the platform, reflecting its expanding ecosystem. Teneo is the leading project regarding user engagement on the Peaq network.

5.2. IoTeX

IoTeX (IOTX) is a modular infrastructure platform that empowers developers to build DePIN. IoTeX bridges the gap between the physical and digital worlds by integrating advanced artificial intelligence and open hardware.

Its architecture consists of an EVM-compatible Layer-1 blockchain, a versatile off-chain compute middleware layer, and device-friendly components that allow smart devices, machines, and sensors to interact seamlessly with decentralized applications (dApps) and on-chain ecosystems. It enables the secure flow of real-world data from physical devices to blockchain networks, facilitating various industry applications. 

Despite its early presence in the space, IoTeX has yet to see significant mainstream adoption. While the platform boasts a robust technical framework, it has struggled to attract high-impact projects with widespread user traction. Currently, the total value locked (TVL) on IoTeX stands at $14.98M, considerably lower than its peak of $80M in 2022. The lack of flagship applications or breakthrough use cases has limited its visibility and growth compared to emerging competitors in the DePIN ecosystem. 

6. Decentralized Compute

Decentralized compute networks aggregate GPU power from multiple sources, ensuring a fairer distribution of computational resources and reducing reliance on the centralized model, where a select few control the majority of processing power.

With the rapid growth of AI development, demand for high-performance chips has surged, leading to long waiting lists at cloud computing firms, sometimes extending up to a year. Decentralized networks provide an alternative to centralized cloud providers and hardware manufacturers, addressing key industry challenges. 

By leveraging idle and cost-effective resources worldwide, they offer significant cost reductions while optimizing underutilized computing and storage capacities. Their resilience against censorship helps counteract the increasing concentration of AI development within large tech companies, fostering a more open and accessible AI ecosystem. Additionally, these networks promote efficient resource utilization, incentivizing the development of open-source models and democratizing access to AI infrastructure. Through decentralization, computer networks enhance efficiency, accessibility, and innovation in AI.

6.1. Akash Network

Akash Network is at the forefront of decentralized cloud computing and was founded to democratize access to computing resources. By creating a marketplace for underutilized computing power, Akash offers cost-effective alternatives to traditional cloud providers. Utilizing blockchain technology for transaction coordination and settlement, the network ensures a trustless, decentralized, and efficient ecosystem for cloud computing services.

Akash Network has strategically shifted its focus toward GPU computing, recognizing the growing demand for AI and machine learning capabilities. This move is not just a reaction to industry trends but a deliberate effort to position itself competitively in the evolving decentralized computing landscape. By prioritizing high-performance computing, Akash aims to strengthen its role in supporting AI-driven applications.

Akash Network has generated $2.6M in revenue through computing rentals, with total leases surpassing 315,000. Its infrastructure has expanded to 756 GPUs and 15,757 CPUs, reinforcing its growing impact in decentralized cloud computing.

6.2. Bittensor Network

Bittensor is pioneering a decentralized AI network by integrating blockchain technology with machine learning, creating an open marketplace for collaborative AI development. Through its unique ecosystem, participants can share, train, and utilize advanced AI models while earning incentives for their contributions.

By decentralizing access to AI, Bittensor aims to foster a global and permissionless environment where individuals and organizations can contribute to and benefit from high-quality AI models, ensuring both diversity and innovation within the network.

Operating as a specialized AI market, Bittensor enables participants to contribute computational resources for various AI-driven tasks, including language translation, code generation, and human interaction modeling. By distributing AI workloads across a decentralized infrastructure, the network enhances efficiency, accessibility, and collaboration, setting a new standard for open-source AI development.

Bittensor is a leading AI project in the crypto space, with over 85 active subnets, further solidifying its role in advancing decentralized artificial intelligence.

7. Wireless & Wired Infra Networks

The high capital investment required for building wireless network infrastructure has historically limited the industry to a few dominant telecommunications companies. This concentration of control has restricted market competition and innovation. Decentralized Wireless networks present an alternative approach by enabling a distributed group of independent participants to deploy wireless infrastructure collaboratively. 

DePINs utilize a peer-to-peer framework, allowing devices like smartphones, IoT sensors, and routers to connect directly with nearby devices. By deploying cost-effective and easily installable wireless infrastructure across large areas, DePINs reduce reliance on centralized hubs, enhancing network efficiency and accessibility. This model incentivizes people to participate in the ecosystem and become more decentralized. 

7.1 Andrena(Dawn)

Andrena(Dawn) is a decentralized internet service provider leveraging its proprietary protocol, DAWN (Decentralized Autonomous Wireless Network), to offer high-speed, cost-effective internet access. The project seeks to challenge traditional ISPs by utilizing advanced fixed wireless technology, significantly reducing infrastructure costs compared to fiber-optic and copper-based networks. Unlike conventional models, DAWN enables a decentralized approach where participants contribute to network expansion and operation.

Andrena has secured substantial funding to support its vision. Its Series A funding round, led by Dragonfly Capital, also attracted investments from CMT Digital, Castle Island Ventures, Wintermute Ventures, 6th Man Ventures, and ParaFi. With this latest funding, the company has raised $38M, including a $15M Series A round previously announced and led by Dragonfly.

A new consumer hardware product is set to launch, enabling property owners and residents to function as independent internet providers. In January 2025, DAWN announced a strategic partnership allowing Helium hotspot operators to offer DAWN broadband services and vice versa, fostering greater interoperability between the networks.

As part of this integration, 8,000 DAWN ecosystem nodes will be incorporated into the Helium Network, enhancing decentralized connectivity. The DAWN Validator Chrome Extension has surpassed one million users, marking a significant network adoption and growth milestone.

7.2 Helium

Helium is a decentralized wireless infrastructure project designed to provide global coverage for LoRaWAN-enabled IoT devices and cellular networks. Launched in 2019 with its flagship product, the Helium Hotspot, the network initially focused on IoT connectivity before expanding to include 5G services. Helium creates and maintains a distributed wireless network by incentivizing participants to contribute resources, fostering greater accessibility and decentralization.

The Helium 5G Network leverages a crowdsourced model to eliminate site acquisition costs, allowing individuals to contribute to high-bandwidth coverage. Through strategic partnerships with established telecommunications providers, Helium enables its hotspots to support users in areas with sufficient network coverage. The network has collaborated with six carriers to facilitate data offloading, enhance connectivity, and expand decentralized wireless access.

Built on the Solana blockchain, the Helium Network benefits from high scalability, low latency, and strong security, ensuring efficient and reliable operations. Currently, Helium supports over 63,000 hotspots, serves more than 558,000 users, and facilitates the transfer of 21.1 TB of data daily. Additionally, the amount of Helium Data Credits burned for network usage has nearly doubled over the past year, reflecting the growing adoption and utilization of the network.

7.3. Double Zero

DoubleZero is a specialized network architecture designed to support the demands of modern, high-performance distributed systems. It offers a decentralized framework for building and managing permissionless networks specifically optimized for technologies such as blockchain.

It is a global fiber network that supports high-performance distributed systems and blockchain infrastructure. The project addresses the limitations of the public internet, particularly bandwidth constraints and unpredictable latency, by building a permissionless network composed of privately contributed fiber links. Their links are optimized for ultra-low latency and high-bandwidth data transmission.

By integrating independently operated fiber connections with specialized edge filtering hardware, DoubleZero enables blockchain networks to significantly boost performance without compromising decentralization or crypto-economic security.

This innovative approach allows for scalable, efficient, and resilient communication across distributed systems. The project’s emphasis on a dedicated fiber optic network represents a transformative leap in infrastructure, comparable to the evolution from dial-up modems reliant on legacy telecommunications to the adoption of high-speed broadband in the early 2000s.

DoubleZero recently concluded its validator token sale, marking a significant milestone in its roadmap. With a vision to redefine blockchain networking, DoubleZero raised $28M in funding and achieved a $400M valuation. Leading investment firms such as Dragonfly and Multicoin Capital played a central role in the round. The team is targeting the second half of 2025 for its main net launch, signaling continued momentum toward delivering high-performance, decentralized connectivity.

8. Sensors

Decentralized sensor networks enable secure, transparent data collection from various environments. Comprised of distributed devices, these networks can capture diverse datasets, including traffic patterns, geographic mapping, etc. Their global distribution enhances decentralization and data accuracy by allowing local, localized information. aggregation

The data gathered can be monetized by selling it to industries relying on real-time insights, creating mutual value for contributors and consumers. This model also introduces a new earning opportunity for everyday users, who can participate in the network by contributing data through their devices.

8.1. Geodnet

Geodnet operates a decentralized network of GNSS (Global Navigation Satellite System) devices, such as GPS, combined with correction services to enhance the accuracy of location-based data significantly.

Using token-based incentive models, Geodnet rewards individuals who deploy and maintain specialized hardware, "Satellite Miners," which collect satellite signals and contribute to the network's overall precision.

These miners are internet-connected devices purchased and installed by users through Geodnet’s official partners or third-party manufacturers. The network supports a wide range of compatible hardware, allowing for broad participation and flexibility in deployment.

As of the latest update, GEODNET has over 16,465 active Satellite Miners operating globally, marking a growth of more than 200% yearly. This expansion has positioned GEODNET as the world’s largest Real-Time Kinematic (RTK) network, surpassing traditional centralized players like Trimble. 

8.2. Hivemapper

Hivemapper is a decentralized mapping network that utilizes blockchain technology to build a comprehensive, continuously updated global map. By crowdsourcing high-quality street-level imagery, the platform empowers individuals to contribute data using devices such as 4K dashcams and smartphones.

Participants also have the option to engage in AI training activities that refine map accuracy and enhance machine learning models. In exchange for their efforts, contributors are incentivized with $HONEY tokens, the network's native digital asset.

These tokens can be redeemed to access map data, ensuring that the value generated by the mapping ecosystem is shared directly with those who help create it. Enterprises and other consumers of the map data pay for access using $HONEY tokens, creating a circular economy that supports data generation and consumption. This incentive-driven model encourages participation and supports the network's scalability.

8.3. Natix

NATIX Network is a blockchain-driven initiative that builds a real-time, crowdsourced world map by transforming everyday cameras into data-generating nodes. By leveraging the widespread availability of smartphones, drones, and vehicles, NATIX creates a globally distributed sensor network capable of capturing and analyzing real-world activity in real-time. The project utilizes proprietary AI software that processes live video streams directly on devices, extracting valuable metadata while ensuring privacy by excluding personally identifiable information. This metadata then populates a Decentralized Dynamic Map (DDMap), enabling a live, continuously updating world view.

Almost any connected camera can integrate Natix’s AI software, turning it into a contributor to the network. Camera owners are rewarded with cryptocurrency for the data they provide, creating a new incentive model for real-time geospatial data sharing. Forty percent of the protocol's revenue is directed toward the buyback and burn of $NATIX tokens, helping to reduce the token supply and potentially enhance its value. 

The network currently boasts 250,000 registered drivers in 171 countries. Additionally, the protocol has burned nearly 110M tokens, reflecting its commitment to maintaining a healthy token economy and long-term value creation.

9. DePAI

A new and rapidly evolving sector known as Decentralized Physical AI (DePAI) is emerging at the intersection of artificial intelligence and blockchain technology. DePAI empowers the development of AI-driven robotic systems while ensuring that ownership remains in the hands of individual users, rather than being concentrated under corporate control.

Users retain full authority over their robots and AI systems through a decentralized network, fostering transparency, autonomy, and trust. While traditional AI models depend heavily on software-based data, the future of artificial intelligence lies in its physical applications, such as autonomous vehicles, delivery robots, and other smart machines.

DePAI plays a crucial role by enabling the collection of real-world operational data, which is essential for training AI systems to function effectively in dynamic, physical environments.

Key advantages of DePAI include its ability to secure high-quality data sets for AI development, support user ownership of intelligent devices, and enhance AI learning capabilities, ultimately driving superior performance in real-world conditions.

9.1. Xmanquina 

Xmanquina is a decentralized autonomous organization (DAO) dedicated to democratizing the ownership and governance of robotics and automation technologies, to ensure these innovations benefit humanity.

By leveraging decentralized structures, XMAQUINA aims to place control and decision-making power in the hands of a global community rather than centralized entities. Through a decentralized governance model, members are empowered to actively influence the future rather than passively observe it, participating in both the decision-making process and the value generated. The DAO provides a transparent and democratic platform for its community to propose, fund, and support next-generation companies.

Distinguished as an Investment DAO, XMAQUINA focuses on "Physical AI"—the convergence of artificial intelligence with autonomous systems, particularly in humanoid robotics. Its inaugural Genesis Auction raised over $900,000, establishing a strong financial foundation for future initiatives.

9.2. Frodobots

FrodoBots is an innovative project that builds the world’s largest real-world teleoperation datasets through robotic gaming. At its core, FrodoBots is an open-world video game in which players remotely control real-life sidewalk robots, also called FrodoBots, deployed across various cities worldwide. Players can connect to these robots and complete missions by navigating them through real-world environments using a standard game controller and an internet connection.

Robots on public streets continuously collect valuable data, including audio, video, and GPS information, contributing to a massive, crowdsourced dataset supporting robotics and AI research. Advancements: The project also plans to introduce token-based incentives, aligning with the principles of the Decentralized Physical Infrastructure Network movement. By combining gaming, robotics, and decentralized incentives, FrodoBots is building a new frontier where entertainment meets real-world data collection at scale.

10. Energy

Blockchain technology can reshape the energy sector by enhancing operational efficiency across the entire value chain and simplifying the management of complex energy systems. When paired with IoT devices, users can seamlessly trade and purchase surplus energy directly from one another, creating a more efficient, transparent, and user-driven energy marketplace.

10.1. Starpower

Starpower is a decentralized energy network designed to transform how connected devices participate in and support energy systems. Operating on the Solana blockchain, Starpower integrates smart hardware, AI-powered energy management, and blockchain-based incentive mechanisms to enable devices to function collectively as part of a Virtual Power Plant. This innovative approach allows users to monitor, optimize, and contribute excess energy resources in real time based on grid demands. 

By aligning user participation with transparent, token-based incentives, Starpower helps stabilize energy grids, particularly those reliant on renewable sources, which often face volatility in supply. The platform enhances grid resilience and empowers individuals and businesses to earn rewards by contributing to sustainable energy distribution.

Starpower develops and supports a portfolio of smart energy devices that integrate directly with its decentralized system. These devices empower users to monitor, manage, and optimize their energy consumption in real-time while contributing valuable data and functionality to the broader energy ecosystem.

Starpower has gained considerable traction, with over one million connected device users and over one million mobile app users actively participating in the ecosystem. Its devices are currently deployed and operational in 792 cities worldwide, reflecting the platform’s rapid adoption and growing global footprint.

10.2. Powerledger

Powerledger is a technology company specializing in software solutions for tracking, tracing, and trading renewable energy and environmental commodities. By leveraging blockchain technology, Powerledger facilitates peer-to-peer energy transactions between producers and consumers, enabling greater transparency, efficiency, and decentralization in energy markets.

The platform allows individuals to contribute and consume clean energy across a distributed network, promoting a more democratic and participatory energy ecosystem. Unlike traditional, centrally managed power systems, Powerledger's decentralized model mitigates the risk of complete system failures and fosters a more competitive environment by eliminating reliance on a single energy provider.

Founded in 2016, Powerledger addresses integrating renewable energy, such as grid congestion, through blockchain-based solutions. The intermittency company is working to modernize energy infrastructure through blockchain-based solutions, enabling a cleaner, more resilient, and equitable future.

11. Challenges 

While DePIN networks offer the advantage of cost-effective, decentralized infrastructure, they face several notable challenges. Despite positioning themselves as a more affordable alternative to traditional Web2 systems, their adoption has yet to scale meaningfully. Following the initial phase of token-based incentives, user growth and sustained engagement have remained relatively limited.

A key concern lies in the data monetization aspect of their model. Although the core revenue stream involves selling user-generated data to third parties, this process has limited transparency. It remains unclear which companies are purchasing the data, at what scale, and what demand truly exists, raising doubts about the long-term viability and robustness of the business model. This uncertainty also extends to the value proposition for users who contribute data to the network.

Tokenomics presents another area of concern. Many DePIN projects offer limited utility for their tokens beyond speculative value. As a result, some users purchase hardware primarily to earn tokens and exit the ecosystem shortly after, rather than contributing to a sustainable network. This undermines the creation of a self-reinforcing growth loop. While some projects have introduced token burn mechanisms to support token value, these measures have yet to demonstrate a significant impact.

12. Conclusion

Decentralized Physical Infrastructure Networks (DePIN) are rapidly emerging as a transformative force in the infrastructure space. They utilize blockchain technology and crypto-economic incentives to build more open, collaborative ecosystems.

Traditionally, the development and maintenance of infrastructure, such as telecommunications, cloud storage, and computing, have been the exclusive domain of large corporations. This centralization has often resulted in limited transparency, restricted user participation, and inefficiencies in scaling.

DePINs offer a fundamental shift from this model by enabling individuals and smaller entities to contribute physical assets such as bandwidth, storage, compute power, and wireless connectivity to a decentralized network. This model democratizes access to infrastructure and enhances its resilience by distributing resources across a wider and more diverse set of participants.

However, the path forward is not without challenges. Scaling these networks to the level of traditional Web2 infrastructure providers requires solving issues related to data reliability, token utility, and sustainable adoption.

The biggest hurdle lies in onboarding mainstream users unfamiliar with blockchain-based systems. For DePINs to achieve mass adoption, they will need to offer user experiences that are intuitive and compelling enough to attract everyday participants, not just crypto-native users.