The most exciting new development of DEP in 2025.

DePIN (Decentralization Physical Infrastructure Network) is a project that utilizes blockchain, Decentralization protocol, and physical infrastructure to develop practical solutions.

This type of project has gone beyond the Crypto field, extending to AI development, human mobility, and geology, but the concept is still in the early stages.

DePIN is one of the biggest narratives in 2024 and will achieve even greater success in 2025. In this article, we will discuss the future development of DePIN.

The rise of the physical infrastructure network of Decentralization

Web3 media and research company Messari created the term DePIN (Decentralization Physical Infrastructure Network) to define projects that use Decentralization protocol to manage physical infrastructure. However, several projects in this category had already gained attention before this.

In the second half of 2023 and throughout 2024, this term became very popular. The DePIN project is a response to the mismanagement and unfair rewards of centralized resource networks, which have led to human errors, failures due to localized architecture, and lack of transparency in finance and management.

The DePIN project has also proposed a more secure and cost-effective alternative. Due to the feasibility of the Crypto market, the number of projects in this category is growing exponentially. According to Depinscan data, there are approximately 296 active DePIN projects as of December, demonstrating the rapid growth of this industry.

The Evolution of DePIN in the Crypto Field

In addition to AI and memes, DePIN can be said to be the most sought-after narrative in the Crypto field in 2024. However, the DePIN project can be traced back to early 2016 when IOTA, Filecoin, and Render Network were launched. The launch of Helium in 2019 marked an important moment for Decentralization connectivity projects.

After creating the term DePIN, other projects that meet the definition are classified together. Since then, the DePIN project has successfully created a Decentralization alternative for crowdsourced resources.

In the past two years, this has expanded to other fields such as health and mobile travel, and the DePIN project has also gained better coverage on well-known Crypto websites such as Coinhint.com.

How DePIN Works

The DePIN project uses blockchain technology for two purposes - data management and allocation of incentive measures.

They use blockchain technology (such as network nodes) to provide a “plug and play” system, support the interconnection of independent infrastructures, and allow them to communicate.

These infrastructures can be Internet of Things (IoT) devices that connect to cars or personal computers in the DecentralizationGPU grid. The blockchain is able to classify, process, and store data, creating immutable storage.

The data generated on the DePIN network is transmitted to the blockchain through connected middleware (such as the oracle protocol of Decentralization), and the organized data will be processed, with the blockchain also taking on the management role. The rewards for network contributions inferred from the submitted data will be distributed to the corresponding network participants.

In this way, the DePIN project can achieve a collaborative system for multiple purposes.

Based on the data and resource types generated on the network, the DePIN network can serve as a simple data collection and distribution network, as well as more advanced use cases such as Decentralization’s ride-sharing, storage network, or computing resource network.

Current Market Status of DePIN

Now, DePIN is an industry with a market value of 330 billion U.S. dollars, and several projects in this industry have a market value of over 10 billion U.S. dollars. The largest market value project in DePIN is Internet Computer (ICP), which is a Decentralization network for internet connectivity and computing resources.

DePIN is a thriving market, with DePIN category projects worth over $14 billion traded on Crypto exchanges every day.

Development to Pay Attention to in 2024-2025

Entering the end of 2024 and 2025, some developments that the DePIN project needs to pay attention to include:

• Expansion into the AI field
• Multi-token ecosystem seen in the Helium network
• Expand DePIN into trade finance

The future of DePIN: What are the prospects?

Given the rapid advancement in this field, DePIN may usher in an interesting future.

Industry leaders have seen a clear path to adopting the DePIN concept on a larger scale. DePIN itself is very flexible, applicable to many fields, and can be used as a system for managing various facilities or as a tool for building collaborative solutions through progressive incentives.

One possible trend in the future is that the mainstream will adopt this concept to overcome the challenges of crowdsourcing public utilities.

As Anatoly Yakovenko, Co-founder and CEO of Solana, said, ‘DePIN is the biggest winner today. Hardware launches are indeed difficult, and token incentives are one way to overcome this barrier.’

However, the DePIN network faces challenges such as legal uncertainty and factors related to the complexity of blockchain technology. One possible future trend is for the DePIN project to modify its technology to make it more understandable and user-friendly.

We can also see that the DePIN project is making greater efforts to comply with legal norms in order to expand into countries with stricter regulations, which may result in significant changes in its operations.

Final Thoughts

The DePIN project has expanded the practical scope of blockchain, from ordinary peer-to-peer transactions to complex applications. Blockchain technology has found new applications in some of the most important fields. As the DePIN narrative evolves, the Decentralization physical infrastructure network may become the preferred platform for several resources currently controlled by centralized organizations.

The DePIN network supports the elimination of intermediaries and single points of failure, and creates a balanced network where participants have the upper hand, helping Crypto assets and blockchain technology flourish.

However, it is recommended to do your own research before investing in any DePIN project or interacting with the DePIN network.