DePIN, which stands for decentralized physical infrastructure, is one of the fastest-growing crypto narratives. It has reached notoriety due to its seamless integration of various technologies under one umbrella.
This particular sector refers to protocols that use blockchain technology to support a global network of physical infrastructure maintained by participants providing the necessary computing resources.
However, it is still a nascent category of projects, with many moving components, elements, and challenges to analyze before reviewing some of the top protocols in this list.
Quick Navigation
- What is DePIN?
- The Top DePIN Projects
- Frequently Asked Question
- Top DePIN Projects: Closing Thoughts
What is DePIN?
Explained simply, DePIN projects are categorized into two types:
- Physical Resource Networks (PRN): These include hardware systems essential for connectivity, such as wireless internet, energy distribution, and geospatial data. An example is Helium Hotspots, which are similar to internet routers.
- Digital Resource Networks (DRN): These supply the network resources needed to operate physical systems, such as computing assets, bandwidth, decentralized cloud storage, and connectivity.
For instance, Eloop, a car-sharing service, partnered with Peaq Network to tokenize 100 Teslas on its blockchain. Peaq utilized MoveID, a self-sovereign identification system, allowing users to own a fraction of a car. Since Tesla cars use AI for geospatial data, Peaq provided MoveID users with services like parking and charging spots.
In this example, the Teslas represent the physical infrastructure, while Peaq Network is the digital resource network supporting it. This scenario illustrates the intersection of AI, real-world assets, tokenization, and blockchain, forming the Economy of Things (EoT), where DePIN is anticipated to be pivotal.
There are some projects that transcend a single category and are part of multiple ones. That’s why you might see some of them listed here and also in our guide on the best AI cryptos.
The Top DePIN Projects
The following protocols are based on performance, team members, foundation strength, and more. Without further ado, let’s jump in.
Render Network (RNDR)
Render Network is an Ethereum-based blockchain platform that aims to decentralize GPU cloud rendering by connecting users needing rendering services with owners of high-performance GPU power. This marketplace allows artists, individuals, and businesses to scale their rendering work more affordably and quickly than centralized GPU cloud systems.
Render Network was a top performer in the DePIN sector, reaching an all-time high of $13.60 in March 2024, surpassing its previous ATH of $7.79 in April 2021. The project has attracted interest from tech giants like Apple, which integrated OctaneRender, Render’s high-performance render engine that operates on Nvidia’s CUDA technology.
Key Features of Render Network
Render’s business model involves two main participants: creators who submit rendering jobs and node operators who use spare GPU power to complete these tasks, earning RNDR as a reward. Rendering tasks can range from simple gaming, entertainment, or art jobs to complex tasks involving AI or machine learning (ML).
Render Network employs a multi-tier pricing protocol based on a reputation system. This model democratizes GPU cloud computing for creators, particularly in Web3, and accommodates various budgets. There are three tiers.
- Tier 1 node operators are the highest-rated and are used mainly by Render’s partners. They offer reliable and scalable services at a higher cost.
- Tier 2 nodes provide high-quality GPU services at a lower cost,
- and Tier 3 nodes are the most economical option.
Founders of Render Network
Render Network (RNDR) was founded by Jules Urbach, who also founded and serves as CEO of OTOY, Inc., a cloud graphics company. The core team includes Kalin Stoyanchev as Head of Blockchain, Joshua Bijak as Project Lead, Charlie Wallace as Chief Technology Officer, Phillip Gara as Director of Strategy, and Jayson Kleinman as Head of Business Development.
Funding and Investors
Render Network completed one fundraising round, securing $30 million from a Seed round on December 21, 2021. The funding came from venture capital firms like Multicoin Capital and Solana Foundation and angel investors like Vinny Lingham.
The Graph (GRT)
The Graph is a decentralized, open-source indexing protocol that collects, processes, and stores data, similar to how a web browser like Google operates. It allows users to explore different blockchain ecosystems and their dApps and is available in at least 14 languages.
Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann founded The Graph in 2018. Two years later, the protocol’s native token, GRT, was launched. GRT has one of the most extensive supplies in the DePIN sector, with a maximum supply of over 10B tokens and about 9.5B in circulation.
Key Features of The Graph
A key feature of The Graph is Subgraphs, which are indices designed to enhance data querying across various networks, including EVM-compatible blockchains and the InterPlanetary File System (IPFS).
Subgraphs can index all public information globally, bridging Web2 and Web3. This data can be stored, organized, and shared across applications, making it accessible for querying. Users pay for these services with the protocol’s native coin, GRT.
Founders of The Graph
Yaniv Tal —an engineer and tech entrepreneur— aimed to create the first decentralized indexing and querying protocol for blockchain data to simplify dApp development.
Before founding The Graph, Tal and Ramirez worked together at MuleSoft, a company specializing in enterprise integration that Salesforce later acquired.
Funding and Investors
According to Crunchbase, The Graph has received approximately $69.6M in funding over eight rounds. The protocol is backed by notable investors, including FinTech Collective, Tiger Global Management, and Blockwall. The latest funding was raised from a Series A round on Mar 2, 2022.
Filecoin (FIL)
Filecoin is a decentralized storage network that transforms cloud storage into an open market.
The protocol is built on the same technology as the InterPlanetary File System (IPFS) and enhances it by adding an incentive layer that ensures data is reliably stored and easily accessible.
Key Features of Filecoin
The Filecoin network functions as a peer-to-peer marketplace, allowing anyone to join as a storage provider or a user needing storage. Economic incentives built into the system promote honesty and reliability among storage providers, ensuring that data is maintained securely over time.
Users can pay to store their files with storage providers using Filecoin’s native token, FIL. The model is simple: decentralized data storage, more competitive pricing, and reliable service compared to traditional cloud storage providers. Additionally, storage providers are judged by their track record —which is published on the blockchain— to promote trust and reliability.
This model supports various use cases, from storing NFT assets to large-scale data for Web3 applications. Moreover, Filecoin’s decentralized nature makes it resistant to censorship, as no single entity controls the storage network.
Filecoin offers several key features that set it apart from traditional and other decentralized storage solutions:
Founders of Filecoin
Filecoin was founded by Juan Benet, an American computer scientist who also created IPFS (InterPlanetary File System). Benet is the CEO of Protocol Labs, the company behind IPFS and Filecoin.
Funding and Investors
Filecoin has attracted significant funding from various investors. In its initial coin offering (ICO) in 2017, Filecoin raised $257 million, one of the largest in crypto history. Key investors include venture capital firms such as Sequoia Capital, Andreessen Horowitz, Union Square Ventures, and Winklevoss Capital.
The FIL token’s total supply is capped at 2 billion and distributed through block rewards over several decades. A portion of the tokens is allocated to miners, Protocol Labs, investors, and the Filecoin Foundation, each with specific vesting schedules to ensure long-term commitment and development of the network.
Arweave (AR)
Arweave is a decentralized blockchain protocol for long-term, permanent data storage.
Arweave uses a unique “blockweave” structure instead of a traditional blockchain, allowing the protocol to return data immutability and global replication through a consensus mechanism known as Succinct Proof of Random Access (SPoRA). This mechanism requires miners to prove access to random pieces of stored data, ensuring the data’s durability and accessibility.
Key Features of Arweave
The Arweave network operates as a global, permissionless hard drive, allowing users to store a wide range of files, from simple text documents to complex web applications and archival databases. This makes it suitable for indefinitely preserving important historical, cultural, and personal information.
Arweave has thousands of independent nodes worldwide that store and replicate data, enhancing security and resilience. Likewise, the stored data is accessible through the permaweb, a decentralized web built on top of Arweave that hosts and provides access to the stored information.
Unlike other decentralized storage solutions, Arweave allows users to pay a one-time fee to store data permanently. There are no ongoing payments or hidden costs.
Founders of Arweave
Sam Williams founded Arweave and has served as its CEO since May 2017. He conceived the idea while completing his PhD in Computer Science at the University of Kent, focusing on decentralized and distributed systems.
Like Benet, Williams wanted to create a permanent, decentralized data storage solution to preserve humanity’s most valuable information for future generations.
Funding and Investment
Arweave has received significant funding from various venture capital firms and private investors.
Some of Arweave’s notable investors include Andreessen Horowitz, Union Square Ventures, and Coinbase Ventures. The protocol’s funding model also includes a tokenomic endowment designed to cover long-term data storage costs; users pay an upfront fee to store their data permanently, with the fees contributing to an endowment that funds storage costs for over 200 years.
Akash Network (AKT)
Akash Network is an open-source, decentralized platform that offers a cloud-computing marketplace where users can buy and sell cloud resources.
Anyone needing cloud computing resources can purchase them from those with excess capacity, with transactions paid in AKT, Akash’s native token, peer-to-peer.
Key Features of Akash Network
Akash is an extensive ecosystem that provides businesses and individuals with decentralized storage, asset and data ownership, and cloud resources at a much lower cost than traditional centralized systems.
Akash also uses the Interplanetary File System (IPFS) for decentralized storage due to its security and resistance to censorship. Here’s a quick rundown of Akash Network’s key features:
- Decentralized Cloud Marketplace: Facilitates a peer-to-peer market where users can buy and sell computing resources.
- Containerization and Kubernetes: Akash uses container technology to ensure applications run consistently across different environments and Kubernetes to manage container orchestration and scaling.
- Cost Efficiency: Reduces costs by utilizing underused resources from data centers and individual providers.
- Security and Privacy: Enhances security by decentralizing data storage and computing, reducing risks associated with centralization
Founders of Akash Network
Akash Network was founded by Greg Osuri and Adam Bozanich.
Osuri, who serves as the CEO, has a background in cloud architecture and has worked with prominent organizations like IBM and Kaiser Permanente. He is also the founder of Angelhack, an accelerator for startups and FinTech projects.
Bozanich, Akash’s CTO, has extensive experience in software engineering and has held positions at Symantec, Mu Dynamics, and Topspin Media.
Funding and Investors
Akash Network has attracted significant investment, completing a $2 million seed round in March 2020. Key investors include George Burke and Infinite Capital. The network also partnered with Solana and the Cosmos Interchain Foundation to expand its capabilities and support for other blockchains.
The AKT token, central to the network’s operations, facilitates transactions and incentivizes providers. It also supports on-chain governance, allowing holders to vote on network improvements.
AIOZ Network, DePIN for Web3 (AIOZ)
AIOZ Network is a decentralized content delivery and cloud storage platform that seeks to transform how digital content is stored, distributed, and accessed.
The protocol leverages a peer-to-peer (P2P) layer-1 blockchain to provide scalable, efficient, and cost-effective solutions for media streaming, AI computation, and Web3 storage needs.
Moreover, this platform is maintained by a global network of edge nodes, ensuring that digital content can be delivered with low latency and high reliability, bypassing the limitations of traditional centralized systems.
Key Features of AIOZ
AIOZ is an ecosystem that offers a comprehensive suite of services, including live streaming, video on demand (VOD), and decentralized AI computation.
These services are powered by AIOZ’s blockchain and Web3 infrastructure, which allows for the seamless integration and operation of decentralized applications (dApps). Here’s a summary of its key features:
- Decentralized Content Delivery Network (dCDN): AIOZ uses a P2P network of edge nodes to deliver content globally, ensuring low latency and high availability.
- Web3 Storage (W3S): Compatible with Amazon S3, it offers scalable and secure decentralized storage with built-in CDN capabilities.
- AI Computation: AIOZ W3AI provides decentralized AI task execution and model training, enhancing privacy and performance by running AI tasks locally on user devices.
- NFT Support: AIOZ simplifies the storage and management of NFTs, providing a resilient and decentralized infrastructure for digital assets.
- Transparent Pricing: The network uses AIOZ tokens for transactions, offering a straightforward and cost-effective pricing model for storage and computation needs
Founders of AIOZ
AIOZ was founded by Erman Tjiputra, who serves as CEO. Tjiputra has a background in engineering and technology and extensive experience developing and managing technology-driven projects.
Funding and Investors
According to Cryptorank data, AIOZ raised over $1M in a private round led by private investors.
BitTensor (TAO)
BitTensor is an open-source infrastructure built around a blockchain called Subtensor, using a unique consensus mechanism known as Proof-of-Intelligence (PoI). This mechanism, similar to Proof-of-Work (PoW), rewards miners for their valuable contributions across various technology and research domains within the BitTensor network.
Overall, BitTensor aims to democratize and commoditize AI and emerging technologies through blockchain technology.
Key Features of BitTensor
BitTensor operates as a decentralized marketplace with multiple subnets, each designed for specific tasks. Unlike parallel chains in systems like Avalanche, these subnets are competitive marketplaces tailored for AI, machine learning, data storage, price feeds, cellular automation, and more.
A notable example of a BitTensor subnet is Decentralized AI Detection, where miners are incentivized to share findings, solutions, products, tools, and frameworks to help the network detect content generated by large language models (LLMs) like ChatGPT.
Anyone can create a subnet by paying a registration fee in TAO, BitTensor’s native token, and establish incentive mechanisms for miners and validators. Each subnet has validators who assess the quality of miners’ work and reward them with TAO.
Here’s a quick rundown of BitTensor’s key features:
- Decentralized Mixture of Experts (MoE): Utilizes multiple specialized neural networks to improve prediction accuracy and handle complex data.
- Knowledge Compounding: Allows AI models to build upon existing knowledge, reducing the need for expensive retraining.
- Token Incentives (TAO): Rewards contributors based on their informational value and supports network governance.
- Collaborative Learning: Fosters a dynamic environment where AI models learn from each other, enhancing overall network intelligence.
Founders of BitTensor
BitTensor was founded by Jacob Steeves and Ala Shaabana. Steeves has a background in computer science and previously worked at Google as a software engineer.
Meanwhile, Shaabana holds a PhD in Computer Science from McMaster University and has served as an assistant professor at the University of Toronto. Together, they aimed to create a decentralized AI network that leverages the power of collective intelligence to advance the field of machine learning.
Funding and Investors
BitTensor was incubated by Polychain Capital, one of the largest crypto venture firms in the industry. Polychain Capital has invested over $200 million in the project.
The network’s economic model is inspired by Bitcoin. A total supply of 21 million TAO tokens is used to incentivize participation and ensure the network’s sustainability. Token holders can earn staking rewards and participate in governance, shaping the platform’s future development.
Helium Network (HNT)
Helium is a decentralized, blockchain-based wireless network designed to create a new, more efficient way for Internet of Things (IoT) devices to communicate. It leverages both blockchain and radio technology to provide long-range wireless coverage for Internet of Things (IoT) devices.
By incentivizing individuals to set up Hotspots, which act as nodes, Helium aims to build “The People’s Network,” where users earn Helium’s native token, HNT, as a reward for contributing to network coverage.
Key Features of Helium
Helium’s network is built on the Solana blockchain, which offers high scalability and speed. These are essential for handling a growing network and enabling fast, cost-effective transactions.
Further, the network supports multiple use cases through its Proof-of-Coverage (PoC) consensus algorithm, which ensures reliable and verifiable network coverage.
Key features of Helium are highlighted as follows:
- Decentralized Infrastructure: The network allows individuals and organizations to deploy and maintain wireless networks, incentivized by the native HNT token.
- Proof-of-Coverage (PoC): A unique consensus algorithm that verifies network coverage and ensures stability.
- Multi-Token Ecosystem: Besides HNT, the network uses Data Credits for transactions and specific tokens like IOT for Internet of ToT devices and MOBILE for 5G networks.
- Scalability and Speed: Helium leverages the Solana blockchain to ensure high transaction speeds and scalability.
- Incentivized Participation: Hotspot owners are rewarded with HNT for providing wireless coverage, encouraging continuous network expansion
Founders of Helium
Helium was founded in 2013 by Amir Haleem, Shawn Fanning, and Sean Carey. Amir Haleem has a background in eSports and game development.
Shawn Fanning is known for developing Napster, one of the first mainstream peer-to-peer file-sharing services. Sean Carey has held various development roles, including at the advertising optimization firm Where, which was acquired by PayPal.
Funding and Investors
Helium has raised over $360M in several Series D rounds and is valued at over $1B as of 2024. Some of the protocol’s most notable backers are Multicoin Capital, 10T Fund Andreessen Horowitz, and Pantera Capital.
IOTA (IOTA)
IOTA is a decentralized, open-source distributed ledger designed for the Internet of Everything (IoE). It provides a secure, feeless infrastructure to support data and value transfer between humans and machines.
Key Features of IOTA
Unlike traditional blockchains, IOTA uses a unique structure called the Tangle, which is a Directed Acyclic Graph (DAG); this type of distributed ledger technology (DLT) allows transactions to be processed simultaneously rather than sequentially, enabling high scalability and zero-fee transactions. This makes IOTA particularly suited for the IoT ecosystem, where devices need to exchange small amounts of data frequently and efficiently.
Moving on, the Tangle blockchain does not need miners nor transaction fees. It instead promotes microtransactions that users all users can pay. The idea is to create a more inclusive and efficient system for the digital economy, driving the adoption of IoT and other emerging technologies.
Here’s a quick rundown of IOTA’s key features:
- DAG: IOTA’s Tangle uses a DAG structure to enable parallel transaction processing, resulting in high scalability and zero-fee transactions.
- Feeless Transactions: Eliminates transaction fees, making microtransactions feasible and promoting wider adoption.
- Low Resource Requirements: Designed to operate efficiently on devices with limited computational power, such as IoT sensors.
- Scalability: Capable of handling a large volume of transactions without congestion, thanks to its unique consensus mechanism.
- Data Integrity: Provides a tamper-proof method of recording transactions, ensuring data authenticity and security
Founders of IOTA
IOTA’s team is full of academic researchers and tech entrepreneurs worldwide. It was co-founded by David Sønstebø, Dominik Schiener, Sergey Ivancheglo, and Serguei Popov.
Sønstebø and Schiener have backgrounds in tech and entrepreneurship, focusing on decentralized technologies and digital innovation.
Similarly, Ivancheglo has a background in cryptography and decentralized systems, while Popov is an academic with expertise in mathematics and distributed systems as well.
Founders and Investors
IOTA raised around $500,000 through a crowdfunding campaign in 2015. However, there are scarce details about the initial funding. The $500k was used to develop the network and support the IOTA Foundation, a non-profit organization dedicated to the continued development and promotion of the IOTA ecosystem.
The protocol frequently promotes its IOTA Grants Program to projects with potential in several areas, such as DeFi, NFTs, SocialFi, and more.
Theta Network (THETA)
Theta Network is a blockchain-based content delivery platform aimed at revolutionizing the streaming industry by decentralizing video streaming, data delivery, and edge computing.
Theta’s infrastructure is designed to enhance the efficiency and reduce the costs of streaming services, providing a decentralized alternative to traditional platforms like YouTube and Twitch.
Thanks to the Theta blockchain, the protocol supports Turing-complete smart contracts, allowing for the creation of various Web3 applications such as non-fungible tokens (NFTs), decentralized exchanges (DEXs), and decentralized autonomous organizations (DAOs).
Key Features of Theta Network
The platform operates through a network of Validator Nodes, Guardian Nodes, and Edge Nodes, which collectively contribute to the network’s decentralization. Validator Nodes propose and produce new blocks, while Guardian Nodes seal blocks and provide a second layer of security.
Edge Nodes, part of the Theta Edge Network, perform tasks such as video transcoding, relaying, and AI computation, leveraging unused bandwidth and computing resources from users worldwide. This decentralized approach aims to improve the quality of streaming services and reduce the costs associated with traditional centralized models.
Theta’s key features are outlined as follows:
- Decentralized Video Delivery: Utilizes a network of nodes to stream video content, reducing the need for centralized servers and improving streaming quality and speed.
- Smart Contracts and DApps: Theta supports the creation of various Web3 applications, including NFTs and DAOs, enhancing the platform’s versatility and functionality.
- Edge Computing: The Theta Edge Network allows for decentralized video transcoding, AI computation, and data delivery, leveraging community resources for efficient task execution.
- Token Incentives: Users earn Theta’s native tokens, THETA and TFUEL, for participating in the network, either by staking or by providing computing resources and bandwidth
Founders of Theta Network
Theta Network was founded by Mitch Liu and Jieyi Long.
Liu has a computer science and engineering background and has founded multiple gaming and video startups. He co-founded Gameview Studios, known for its popular social mobile games, and Tapjoy, a mobile advertising platform.
Meanwhile, Long, co-founder and CTO, holds a Ph.D. in computer engineering and has extensive experience in virtual reality, large-scale distributed systems, and blockchain technologies.
Funding and Investors
Theta Network raised one venture round on May 3. However, the details about the investors and the amount raised remain private.
Frequently Asked Questions
What is an example of DePIN?
As explained in our guide, decentralized physical infrastructure projects in the cryptocurrency field vary and they focus on different areas. For example, Render Network focuses on decentralized GPU rendering, while Theta Network is a content delivery network.
What is DePIN Solana?
DePIN on Solana encompasses various prominent project who are building on the network. One of them is Helium. It is a decentralized, blockchain-based wireless network designed to create a new way for Internet of Things (IoT) devices to communicate.
Which crypto is DePIN?
There are multiple crypto projects that focus on providing a decentralized physical infrastructure (DePIN). Examples include Render Network, The Graph, Helium, Theta Network, Akash Network, AIOZ, Bittensor, and many more.
Top DePIN Projects: Closing Thoughts
Essentially, DePIN refers to the application of blockchain technology to a global network of physical infrastructure and hardware systems supported by participants who provide the computing resources needed to maintain these decentralized systems.
The post What is DePIN? Top 10 DePIN Crypto Projects in 2024 appeared first on CryptoPotato.
