What is DePin Crypto: Complete Guide for Beginners

Decentralized physical infrastructure networks (DePIN), otherwise known as distributed computing solutions, are becoming one of the fastest growing areas of the cryptocurrency industry in 2025. According to CoinGecko, the total capitalization of projects in this sector is approaching $22 billion, with daily trading volume approaching $2 billion.




Investment company VanEck  actively emphasizes the rapid growth of DePIN and considers it as one of the key trends of the current year, capable of attracting billions of new users to the Web3 ecosystem. DePIN networks challenge the dominance of a few big companies by democratizing infrastructure and enabling community-controlled services.

This position is also supported by  Borderless Capital, which launched DePin Fund III , a global investment project aimed at supporting and developing decentralized infrastructure solutions around the world.

DePIN concept

What is DePIN: combining physical infrastructure with blockchain

DePINs, or Decentralized Physical Infrastructure Networks, literally translates to decentralized physical infrastructure networks. As defined by Coinmarketcap, it is a network of blockchain protocols that are used to develop, maintain and operate all physical hardware (infrastructure). And all of these functions are implemented in a decentralized and open manner. DePINs leverage decentralized systems and distributed systems to ensure transparency, security, and resilience across the network.

It is important to note that DePIN are focused on the usage of blockchain technologies as the foundation for secure data collection, storage, and verification, as well as rewards in the form of tokens so that the whole system in the real world works in a decentralized mode. Each participant makes a useful contribution to the resource base, primarily in the areas of transportation, energy, and wireless communications.

For an illustrative example, referring to the Coinmarketcap glossary, consider a community-managed solar power grid project. In the DePIN network, participants can use blockchain technology to manage the project in a coordinated manner, capture information about energy generation and use, and equitably distribute rewards for electricity generated. The decentralized approach eliminates the need for a traditional centralized energy company to oversee the infrastructure.

Key features of decentralized physical infrastructure networks:

• the term DePIN covers such projects that create decentralized blockchain-based control systems to handle physical objects and services;


• they are most often global platforms for processing data and computing resources;


• these projects focus on using cryptocurrency-based incentive mechanisms to reward participants providing crowdsourced physical infrastructure;


• efficient management and allocation of network resources through tokenized incentives and smart contracts;


• they are an effective alternative to traditional centralized structures with fair distribution of rewards and system sustainability.

Today, such projects as IoTEX, Helium, Hivemapper and the Natix network are actively developing their work. Thanks to them, DePIN sector is rapidly scaling up and taking an increasingly important place in the cryptocurrency industry.

Differentiation from traditional infrastructure (IoT, telecom, transportation, etc.)

The main difference between DePIN and traditional infrastructure is the decentralized approach to resource management and distribution. While classical systems - such as telecommunications networks, transportation platforms or Internet of Things (IoT) solutions - are usually controlled by large centralized corporations or government entities, traditional centralized models rely on the control and management of physical assets by a few entities, limiting broader participation.

In contrast, DePIN enables community ownership and management of both digital and physical assets through decentralized infrastructure networks.





DePIN thus offers more democratic, sustainable and transparent model for physical infrastructure development, capable of transforming industries previously dependent on large players and centralized solutions.

Why decentralization is important in the physical world

DePIN protocols cover a variety of infrastructure areas such as information storage, wireless networks, computing, energy, and data collection. Their main goal is to create a decentralized ecosystem where service providers and users interact directly.

DePINs enable the creation and management of physical systems and physical services, such as WiFi hotspots and decentralized storage, enhancing real-world utility and accessibility. This approach aims to counter the influence of large centralized corporations by offering alternative solutions where privacy protection, resistance to censorship, and fair distribution of rewards among participants come first.

Benefits of decentralization:

• reducing dependence on centralized structures;


• increased resilience and reliability;


• economic inclusiveness and new earning models;


• increased transparency and trust;


• resistance to censorship and political control;


• high flexibility and scalability.

DePIN project classification

As mentioned above, DePIN projects cover a wide range of areas, providing decentralized alternatives to traditional physical infrastructures. DePIN infrastructure projects are increasingly being adopted as innovative solutions for building and managing essential services.

They can be conditionally classified into functional categories depending on the type of services provided. Below are the main groups of DePIN-projects and prominent representatives of each of them.

• sector Compute: Akash Network, Render;


• Storage sector: Filecoin, Arweave;


• Wireless (communication) sector: Helium, Pollen;


• Sensors / IoT sector: DIMO, WeatherXM.

Compute

Projects in this category provide distributed computing resources, allowing users to rent or offer capacity without the need for centralized data centers:

• Akash Network — is a decentralized cloud-based marketplace where users can rent computing resources directly from vendors at competitive prices;


• Render – is a platform for distributed visualization and graphics processing, especially popular among designers and developers of 3D content.

Storage

These projects offer secure decentralized storage and decentralized storage networks as alternatives to traditional cloud storage providers, eliminating the need to rely on centralized cloud providers:

Filecoin and Arweave are leading examples of decentralized storage networks. These platforms create a peer-to-peer marketplace where storage providers can rent out their unused storage space and earn tokens. By leveraging blockchain technology, decentralized storage networks like Filecoin ensure data integrity, providing a secure, transparent, and reliable alternative to traditional cloud storage providers.

• Filecoin – is one of the largest solutions in the field, allowing users to rent out free disk space and get rewarded in tokens;


• Arweave – is a blockchain platform for long-term data storage, where information is stored “forever” thanks to a special architecture and payment model.

Wireless (wireless communication)

Projects in this area form decentralized wireless networks that can be used for the Internet of Things (IoT), mobile communications, and other applications:

• Helium – builds a global wireless network in which users deploy access points and receive tokens for their usage. Internet routers are essential components that connect these physical hardware nodes to the decentralized wireless network;


• Pollen – provides decentralized mobile communications where participants build and maintain their own LTE networks. Internet routers play a key role in linking the hardware nodes to the broader decentralized infrastructure.

Sensors / IoT (sensors and the Internet of Things)

This category covers projects that collect and transmit data from physical sensors and devices, ensuring transparency and authenticity of information:

• DIMO – is a decentralized platform for collecting and analyzing vehicle telematics data where vehicle owners can share data and receive rewards;


• WeatherXM – is a network of crowdsourced meteorological stations providing accurate real-time weather data using blockchain.

Mechanics of DePIN operation

The functioning of the DePIN ecosystem is based on the interaction of three main componens:

1. Ofchain network - operates as a peer to peer marketplace where participants contribute resources such as bandwidth, storage, or computing power. Infrastructure service providers (e.g. owners of computing devices, access points and sensors) offer their resources and users who need these services (GPU power, internet connection or sensor data) can purchase them directly on the open market.


2. Blockchain - plays the role of a trusted ledger that ensures the transparency and reliability of all interactions between network participants. It records every transaction, protects data from counterfeiting and guarantees the authenticity of transaction history, making the system more secure and verifiable.


3. Protocols are software-defined instructions that govern the behavior of all participants. They define the conditions of participation in the network, the mechanism of token distribution, security algorithms, and the rules by which users and providers exchange resources.

Together, these elements provide a resilient and transparent DePIN architecture to build physical infrastructure without intermediaries and centralized control structures.

How “Proof of Physical Work” model works

Proof of Physical Work (PoPW) model is an innovative mechanism used in decentralized physical infrastructure networks (DePINs) that allows participants to earn rewards for contributing to real, not just digital, infrastructure. Unlike familiar models such as Proof of Work (PoW) or Proof of Stake (PoS), where resources are spent on doing math or freezing tokens, PoPW focuses on doing concrete physical work that has value in the real world.

PoPW working principle:

• the participant performs a physical task including hardware deployment (installing and maintaining physical infrastructure components such as wireless access points, smart meters, or energy sensors), collecting and transmitting sensor data, providing storage or computing power, transmitting signals, or participating in logistics);


• work is recorded and verified - devices connected to the network automatically transmit data about the work performed to the blockchain. This data may include the amount of information transmitted, the number of connections to the access point, the validity and frequency of the data provided;


• verification - the network or smart contracts verify the validity and usefulness of the completed task. This can be accomplished using crowdsourced verification mechanisms (e.g., matching information from other sources), reputation systems, and cross-checking between participants;


• reward accrual - after successful verification, tokens are accrued to the participant as a reward for contribution to the physical network. The amount of payment depends on the volume and quality of work performed.

Role of tokens in motivating participants

Proper tokenomics is the basis for sustainable functioning and development. To stimulate development at an early stage, many DePIN projects implement gamification mechanisms long before the token is launched. For example, such projects as Hivemapper, Helium and Geodnet  use a system of points and rewards for activity - it motivates users to participate and builds an early community of loyal participants.

Four key factors underlie most reward models in DePIN:

1. Geographical location - nodes located in densely populated and strategically important areas receive higher rewards because they bring more value to the network.


2. Participant's activity - regular and quality contribution of a user directly affects the amount of reward received by the user.


3. Quality of data and services - the higher the accuracy, reliability or technical level of the resource provided, more generous the reward will be.


4. Network growth - as the number of participants and demand for services increases, the total pool of rewards also increases, which helps to maintain incentives for development.

Additionally, smart contracts play a crucial role in facilitating dynamic and fair resource allocation, ensuring that rewards are distributed efficiently based on participants' contributions.

DePIN nodes device: who can launch, how to make money

A node is either a hardware device or a software solution connected to the internet and synchronized with the project's blockchain. Depending on the direction of the project, a node can:

• transmit traffic (Helium, Pollen);


• store and release data (Arweave, Filecoin);


• provide GPU/CPU for tasks (Render, Akash);


• collect telemetry or sensor data (DIMO, WeatherXM, Natix);


• create maps or other elements of the physical world (Hivemapper).

In addition to physical resource networks, some DePIN projects focus on digital resource networks. Digital resource networks (DRNs) include decentralized databases, computing services (such as AI and machine learning), and bandwidth services like CDNs and VPNs. These digital resource networks must be decentralized to qualify as DePINs, contrasting them with centralized services.

A node interacts with the network by sending confirmation of its activity and also participates in data verification and block formation (depending on the consensus model).

One of the key ideas behind DePIN is accessibility for everyone. Nodes can launch:

• ordinary users who have installed special equipment (e.g. Helium access point or WeatherXM weather station);


• car owners who have connected their vehicles to networks, as in the case of DIMO;


• technicians and enthusiasts providing computing power or storage, such as in Akash or Filecoin networks;


• SMEs that want to monetize redundant resources (e.g. internet bandwidth or free servers).

In this way, DePIN lowers the entry threshold: you don't need to be a large company or investor to participate.

Examples of earning money on nodes:

• Helium: LoRaWAN access point installation - rewards for IoT data transfer;


• Hivemapper: video recorder in the car - tokens for road mapping;


• Filecoin: hosting a node with data storage - income from renting space;


• Akash: running a server - tokens for providing cloud computing;


• WeatherXM: collecting weather data - reward for its accuracy and relevance.

DePIN economics and tokenomics

One of the key elements determining the viability and success of DePIN projects is properly designed tokenomics. Proprietary tokens in these networks perform several functions at once: they encourage suppliers to join the network, facilitate settlements between participants, and help maintain fair and transparent interactions.

An effective tokenomics model can attract not only technical participants, but also investors and end users. The increase in token value allows providers to offer their services at more competitive prices, thereby expanding the user base and increasing demand. This forms a positive growth cycle: increased demand - increased token value - increased incentives for new participants - further development of the network.

How demand and supply are formed

In DePIN networks, supply and demand are shaped by the laws of the market economy, but with features related to decentralization, the cryptocurrency nature of tokens, and the role of the community.

Demand in DePIN networks is created by users who need real infrastructure resources - computing, data storage, wireless access, sensor data, etc. These can be individuals or companies interested in lower prices (compared to centralized providers), privacy (data is not stored with a single provider), resilience to censorship and failures, local or unique infrastructure (e.g., access points or weather stations in a specific area).

For example, an AI developer can rent Render network graphics capacity cheaper than from large cloud providers.



The offer is formed by network participants who launch DePIN nodes that provide useful resources in the form of servers and GPUs, free storage space, access points, IoT devices and sensors, autos with DVRs. Participants can provide both digital and physical resources, with physical resource networks (PRNs) involving tangible assets like infrastructure or hardware.

Each such participant is interested in getting rewarded in tokens, which incentivizes the expansion of the offer.

How users earn money: mining, stacking, device rental

There are several main ways to generate revenue in decentralized physical infrastructure networks: mining, staking, and device rentals. Blockchain technology facilitates the seamless integration of physical resources into digital infrastructure, ensuring transparency and trust among participants. Let's consider each one in more detail.

Mining of Physical Work (Proof of Physical Work)

In the context of DePIN, mining means rewarding real activity in the physical world. Namely:

• participants install equipment (e.g., antennas, sensors, cameras);


• connect devices to the network and transmit data;


• confirm their usefulness and receive tokens.

For example, the Helium network realizes this through mining for wireless network support (LoRaWAN), and the Hivemapper project offers rewards for mapping from the DVR.

Staking

Staking is a token freezing for a certain period of time in order to support the operation of the network and receive remuneration. In a DePIN, this can be in the form of confirmation of a node's reliability (the more stakes, the higher the trust), participation in network management (voting), a means of protection against unfair actions (in case of violation - stake can be burned).

For example, in DePIN projects such as DIMO or Render, vendors or validators are required to stake tokens in order to access rewards.

Lease or sell access to devices

Users can rent equipment or share its processing power, storage or data. It is especially relevant if you have a spare server, disk, GPU or antenna, you connect your personal car, drone or smartphone to the DePIN network, you share access to your internet or power grid.

For example, in Akash Network it is relevant to rent servers and GPUs for cloud computing, and for the Filecoin project it is actual to rent hard disks and storage.

How DePIN projects ensure sustainability

Sustainability is one of the key success factors for decentralized physical infrastructure networks. To operate sustainably and grow over the long term, DePIN projects implement strategies to ensure reliability, economic viability and sustainable growth.

Decentralization and fault tolerance

DePINs are not dependent on a single operator. The network is built from thousands of independent nodes, each of which can perform useful work. It guarantees:

• failure protection: if one node fails, the network continues to operate);


• resistance to censorship and attacks: it is impossible to disconnect the entire network centrally;


• high scalability: the more participants, the more powerful the network.

Economic stability through tokenomics

DePIN projects create market incentives, motivating participants to contribute to the development of the network. Sustainability is ensured by:

• a well-thought-out reward model based on contribution and quality;


• limits on token issuance and reasonable distribution;


• the use of dynamic mechanisms to prevent inflation and speculation.

A DePIN operates as a closed-loop system, or 'flywheel', to create and sustain a self-reinforcing network. This ensures that as more participants join and contribute, the network becomes increasingly robust and valuable.

Flexibility and adaptation to external conditions

DePIN projects have the ability to adapt in response to demand and changing conditions:

• they allocate resources based on demand (e.g., more nodes in densely populated areas);


• they update protocols through community participation;


• they adjust rewards to maintain a balance between network growth and quality.

Decentralized Physical Infrastructure Networks can scale organically as new participants join, allowing for rapid infrastructure expansion and adaptability to changing demands.

The majority of DePINs utilize Proof of Physical Work, a model in which only those who contribute real value are rewarded. The following are also employed:

• data verification systems (e.g., geolocation, sensors, photo documentation);


• voting on changes to the network;


• DAO (decentralized autonomous organizations) — for management without centralized control.

Scalability and modularity

DePIN projects are designed with future expansion in mind:

• new devices, regions, and protocols can be connected;


• new business models—rental, subscription, gamification—can be easily implemented;


• networks can interact with each other, which increases the stability of the entire ecosystem.

Examples of successful use cases

Next, let's look at some examples of successful DePIN cases. DePIN projects are also being used to enhance transportation systems by improving accessibility, efficiency, and resilience through decentralized infrastructure.

The history of Helium: achievements and challenges

Helium – is one of the most well-known and ambitious projects in the DePIN ecosystem. It was launched in 2019 with the goal of building a decentralized wireless network for Internet of Things (IoT) devices using LoRaWAN technology. Unlike traditional telecom companies, Helium offered a model in which any user could install a special hotspot node in their home and receive rewards in HNT tokens for coverage and data transmission.



Key project achievements:

• rapid network growth – thanks to low barriers to entry and ease of use, thousands of users around the world began installing nodes. By 2022, the network had more than 900,000 active hotspot devices;


• strong community – the project attracted active enthusiasts, crypto investors, and IoT developers, which helped form a global decentralized community.


• Proof of Coverage (PoC) model – the crypto industry's first “proof of coverage” model was implemented, where nodes were rewarded not for computing power, but for physical wireless network coverage and data transmission;


• going beyond IoT – Helium later began to develop separate areas – Helium 5G (a mobile network based on CBRS frequencies) and Helium Mobile (a partnership with T-Mobile in the US), seeking to enter the telecom services market.

Problems encountered by the project:

• uneven rewards – at a certain stage, node profitability fell sharply, especially in densely populated regions. Many users complained that their investments in equipment were not paying off;


• suspicions of manipulation – in 2022, accusations arose that most of the HNT tokens had been distributed among insiders and early investors. This undermined confidence in the project;


• transition to Solana – in 2023, Helium decided to move from its own blockchain to the Solana network, which was met with both support and criticism. The transition promised increased scalability, but was accompanied by technical difficulties and a partial loss of autonomy.

DIMO: decentralized data collection from vehicles

DIMO (Digital Infrastructure for Moving Objects) is an innovative project in the DePIN ecosystem aimed at creating a decentralized network for collecting, storing, and monetizing data obtained from cars. It offers an alternative to traditional centralized platforms of car manufacturers, where data is controlled by corporations and is not accessible to drivers themselves. DIMO is committed to returning control of data to its owners.



The project was launched in 2021 by a team of enthusiasts in blockchain technology and the automotive industry. They set themselves the goal of creating a platform where drivers and vehicle owners could securely transfer data from their cars to a decentralized network and receive rewards for doing so.

How DIMO works:

• connecting the car – the driver installs the DIMO mobile app or connects a specialized device (DIMO Data Miner) that reads data from the car via the OBD-II port or wireless channel;


• sending data to the network – the data is processed and sent to a decentralized network, where it is encrypted and stored securely;


• user rewards – for each useful data set, users receive $DIMO tokens (the project's native cryptocurrency);


• data usage – car services, insurance companies, cities, and other interested parties can access aggregated and anonymized data to improve their services. All of this is done with the consent of users.

By 2024, tens of thousands of cars around the world had joined the project. Today, both DIMO devices and third-party trackers and OBD adapters are supported. The project actively collaborates with other DePIN and blockchain ecosystems.

How DePIN is used in real-world applications (medicine, logistics, meteorology)

Decentralized physical infrastructure networks go beyond purely cryptocurrency experiments and find more and more practical applications in real industries:

• medicine: helps to collect and process real-time data on patients' health status, e.g. using sensors and wearable devices to transmit data (heart rate, oxygen level, ECG) to a decentralized network where the information is only available to medical professionals with the patient's permission;


• logistics: using GPS devices integrated into DePIN networks, it is possible to track the movement of goods in real time. This data cannot be tampered with as it is recorded in the blockchain;


• meteorology: projects like WeatherXM use a crowdsourcing model in which users install home weather stations and are rewarded in tokens for transmitting the information. The resulting data is used by both private companies and the scientific community.

Interaction with DePIN

Connecting to DePIN networks is the first step to participating in a decentralized physical infrastructure and receiving rewards for contributing to its development. Depending on the project and its specialization (communications, data storage, meteorological observation, etc.), the process may vary slightly.

How to connect to DePIN network

The general connection algorithm and participation options are described below:

• choice of project and type of network: study the reward model, hardware requirements and network activity in your area (Helium as a decentralized wireless network, DIMO for automotive data collection, WeatherXM for weather station monitoring, Filecoin or Arweave for decentralized data storage, Akash or Render for computing power utilization;


• hardware purchase and installation: most DePIN networks require a dedicated device or node that will perform a useful function in the network. For example, in Helium this could be a Hotspot (LoRaWAN or 5G) that connects to the internet, and in vaults like Filecoin it could be a specialized server or hosting setup;


• wallet registration and connection setup: almost all DePIN projects require a cryptocurrency wallet (MetaMask, Phantom, Keplr, etc.) to be connected to identify the participant, receive rewards in tokens, and manage the node and settings;


• receiving rewards: as soon as the device starts doing useful work (broadcasting a signal, collecting data, providing storage), it will generate rewards in project tokens;


• support, updates and community participation: once connected to the network, it is important to update the device firmware (if required), monitor the technical status of the node, participate in the forums and Discord servers of the project, and keep abreast of changes in the tokenomics and reward rules.

Risks and benefits for users and operators

DePIN networks open up new opportunities for users and operators: from earning money from providing resources to participating in the future of the Web3-internet. However, as with any technology, there are benefits and risks to consider before joining the network.

The advantages include:

• passive income generation - users earn through node operation, data transfer and token steaking;


• decentralization and control - users control their own data and devices, participate in project management through voting and proposals without dependence on a single provider;


• growth in token value - successful DePIN projects (e.g. Helium or Render) have already shown growth in the value of their tokens. This opens up the possibility of capital gains and more profitable token sales or exchanges in the future;


• participation in the development of future infrastructure - by connecting to DePIN, users invest in real infrastructure (wireless communication, climate monitoring, transportation data). This is a contribution to technological independence and Web3 transition.

Among the main risks are the following:

• token volatility - DePIN tokens can fluctuate greatly in price. This means that revenues may drop sharply, and the payback period of the equipment may be prolonged or may not occur at all;


• regulatory risks - DePIN is a new and poorly regulated area, which may result in restrictions from the authorities or tax obligations that are not yet clearly defined in all countries.

Basics of participating in DAO DePIN projects

Decentralized Autonomous Organizations (DAOs) have an essential role in the management of DePIN projects. They allow community members not only to use the infrastructure, but also to influence its development by making collective decisions on key issues. DAOs turn users and operators into co-owners and co-developers of the network, creating a truly decentralized governance model.

DAO is a form of project management where decisions are made by a community of token holders rather than a centralized development team. In DePIN, this may apply to:

• distribution of tokens and rewards;


• changes in the protocol or network;


• election of new development directions;


• subsidizing new locations or devices.

Participation in the DAO works as follows:

• availability of tokens - to participate in voting and decision making, a user must own the government or governance tokens of the project (governance tokens). The number of tokens determines the weight of the vote


• proposing initiatives - any participant, often with a minimum number of tokens, can propose changes, such as reward rules or technical updates;


• voting - participants vote for or against a proposal. When a certain quorum and percentage threshold is reached, the initiative is approved and implemented via smart contracts.

For example, Helium project members vote on the transition to a new coverage model, subsidies for 5G devices and changes in token distribution, while in the DIMO network DAO members influence the reward structure for telemetry collection and new integrations with car manufacturers, for WeatherXM management the DAO community decides where to deploy stations, how much to reward for rare data (e.g. in climatically challenging regions).

Participation in the DAO allows you to:

• influence the development of the project and its tokenomics;


• ensure transparency: all DAO actions are recorded in the blockchain;


• receive rewards;


• improve your investments.

DePIN and the future of Web3

DePIN sphere is demonstrating rapid growth - the total market capitalization of projects has  exceeded $32 billion,, increasing by 28% over the last year. The shift from centralized models to decentralized networks paves the way for a more efficient, sustainable and affordable infrastructure for users around the world.

Connectivity with DeFi, AI, IoT

DePINs integrate with other Web3 trends - DeFi, artificial intelligence (AI) and the Internet of Things (IoT). Together, they form the foundation for a truly decentralized, autonomous and efficient digital world:

• the transmission of trusted data (e.g., from DIMO IoT devices or WeatherXM weather stations) enables new types of DeFi products: insurance, synthetic assets, weather derivatives;


• can pledge physical devices or nodes as secured assets for lending;


• DePIN rewards and tokens can be used in DeFi platforms for liquidity, stacking, and farming;


• DePINs are increasingly being integrated into smart cities, where decentralized infrastructure and IoT connectivity help manage urban systems such as energy, transportation, and waste, leveraging blockchain for transparency and sustainability.

DePIN offers a decentralized alternative to large data centers and API providers. For example, Render Network, Akash and other projects provide distributed GPU resources for training and running AI models.

These decentralized platforms also support virtual reality applications by providing the necessary computing power for rendering immersive digital environments. Data collection networks like Hivemapper or Natix generate large amounts of visual and behavioral information that can be used for machine learning.

Projects like Helium, DIMO, WeatherXM show how DePIN can become the infrastructure for thousands and millions of IoT devices. Theta Network is a leading example of decentralized video delivery, allowing users to earn tokens by sharing resources and improving streaming efficiency through a peer-to-peer model.

Regulatory and legal aspects

The development of DePIN opens new horizons for Web3, but also raises issues of regulation, liability and legal compliance for participants.  DePIN combines digital infrastructure (blockchain, tokens, DAOs) and physical infrastructure (devices, sensors, antennas, servers, etc.). It creates a legal challenge:

• Who is responsible for the physical node? For example, if a Helium node violates communication standards or a DIMO sensor collects data in a restricted area, the responsibility lies with the device owner, not the DAO.


• What jurisdictional field does the network belong to? A DePIN may be global, but the equipment is physically located in a specific country with its own laws.

DePIN systems must navigate complex regulatory frameworks that often favor traditional centralized models over decentralized ones, posing additional challenges for widespread adoption.

Key legal risks of DePIN projects:

Potential for mass applications

DePIN is pushing the boundaries of Web3, making it not only virtual but also physically tangible. This is the way to a world where access to computing, communication and data belongs not to corporations, but to people, and where technology works in the public interest.

Messari analysts forecast the DePIN market to grow to $3.5 trillion by 2028. This progress is driven by the growing number of IoT devices, popularization of edge computing, and the global trend towards decentralization. It is expected that by the year 2028, there will be more than 25-billion connected IoT devices in the world. This indicates the rapid convergence of digital and physical environments, where DePIN will become an important infrastructure link.