There is a lot about the DePIN going on lately among the newly released projects. In the age of decentralization there is a lot of going on in context of the infrastructure and the digital resources in the blockchain projects. Many blockchains with P2P projects have recently adopted the DePIN system.
There are projects like Helim, Arweave, Render and many other blockchain projects have recently started making use of the DePIN method of the decentralized infrastructure. There aren't much scrutiny as of now for these projects but we would see how the SEC and regulators would be adopting it.
In this post, we take a look at How Do DePINs Work? How they are being used? And we will be seeing how DePIN would be used in the near future?
What is a DePIN? How a DePIN works?
DePIN is a decentralized protocol that allows the user to build, operate and maintain a network in the physical infrastructure without having to get any centralized point of contact and stay open. DePIN is basically a Decentralized physical infrastructure networks, shortened as DePIN. Think of DePIN as a cloud computing like service but in a decentralized and open manner.
Think of it like a project you wish to build on chain where you need some server specs, storage and other network parameters. You choose that using the DePIN and then extend that project and make use of these resources in a decentralized manner. DePINs work on blockchain, offchain and also on the protocol level. Apart from that they also have both physical and digital component inside the protocol group. You can read more about Akasha Network DePINs for reference here.
What are some advantages of a DePIN? Where are some issues of it?
Every system or protocol has it's own use case. So does the DePIN and it has it's own issues too. So let's take a look at some of it's benefits.
- Best part about DePIN is it being censorship resistant and can't be taken down that easily in one click.
- DePIN that are scaled can be used with the low pricing too based on their scalability.
- DePINs open and decentralized unlike azure, aws and GCP.
- It doesn't have one point of failure in case of worst case scenario.
Now that we have seen the benefits of the DePINs we can now take a look at the issues with the protocol as well.
- It is decentralized and it is open for issues with network attacks.
- Bugs on regular basis come in and not easier to fix.
- DePINs are not for non-technical users, they require a strong learning curve.
- Centralized entities like azure, aws, GCP are easier to maintain, setup and for learning curve.
- Internal tokens built on the DePINs kind of open for voltaile nature of market.
In short though this may open an opportunity but it has it's own set of the challenges. However this would also open up new marketplace for p2p and other use cases.
What are some of the use cases of DePIN?
This one was kind of challenging for me to find out. Because apart from the Akasha network which is the queen with crown of this protocol. There are some small projects that are into DePIN and have been pretty strong in it's use case.
- Arweave network is one of the most strong use case for the DePIN protocol. As there are tons of the data that needs perma storage and such decentralized systems are useful.
- FileCoin is another use case that we can see on such decentralized system. There is also Storj token that can be perfect for this type of the open decentralized infrastructure system.
- Power Ledger is one more system that has been out and making use of the decentralized infrastructure systems so far. I would be covering that in near future post.
In short DePIN projects do have a future. And we can see some really good projects following it's use case with protocol in effect in their deployment.
DePIN projects if found the right infrastructure would open up a door towards some really interesting and ambitious projects. Be it on the blockchain and also with AI it'd just get infrastructure based tech on another level.
Posted Using InLeo Alpha