DePIN has come into the world with the ability to create Defi projects that reward actions in the physical world. What is this technology about and how does DePIN work?
Theoretical studies of cryptocurrencies have long predicted that the encryption tools currently implemented in the blockchain will be used on the Internet and will sooner or later impact the physical world. At the end of the 20th century, Nick Szabo discovered that smart contracts could automatically manage physical objects. More than 25 years have passed and blockchain is firmly anchored in our lives.
This is largely due to cryptocurrencies: Bitcoin (BTC) continues to break records and is supported by significant physical infrastructure. At first glance, this confirms an actual physical presence in our world.
However, the boundaries of decentralized technologies continue to expand with the emergence of solutions like DePIN.
What is DePIN and why does Blockchain need it?
DePIN means a decentralized physical infrastructure network. Blockchain participants use a public ledger and cryptocurrency to build and manage specific, real-world infrastructure projects. Simply put, DePIN involves using the DePIN blockchain to operate and maintain decentralized networks of devices that can serve a common purpose.
This allows the network to be built on decentralized, horizontal connections rather than the hierarchical approach typically seen in large infrastructure projects such as bridges or roads. Building and managing physical infrastructure networks is expensive and complex, so they have historically been the domain of large companies…
