Can DePIN truly revolutionize traditional infrastructure? The new story from Helium to Filecoin

Starting from the Pain Points of Centralization

Imagine how Uber operates—drivers contribute vehicles and services, passengers gain convenience, but all profits and data are controlled by the platform. This centralized model is common in the internet era: a company builds infrastructure, controls resource allocation, and users and service providers can only passively accept the rules.

But what if we break down and reassemble this model? Let providers truly own their resources, give users fairer pricing, and enable everyone to participate in management—this is what DePIN (Decentralized Physical Infrastructure Networks) aims to do.

What exactly is DePIN? Why is it important?

DePIN stands for Decentralized Physical Infrastructure Networks, simply combining real-world physical infrastructure (from sensors to routers to solar panels) with blockchain technology.

The core mechanism is straightforward:

• Participants contribute physical resources (cars, devices, computing power, etc.)
• Blockchain records and rewards these contributions (using cryptocurrency Tokens as incentives)
• Users pay for services, with funds flowing to providers and network maintenance

Unlike traditional platforms, DePIN introduces a key element—an encrypted incentive system. This not only activates idle resources but also ensures participants share in the value growth.

How does DePIN actually operate? The three-layer architecture is crucial

To understand DePIN’s workflow, first know its three layers:

Layer 1: Physical Infrastructure
These are tangible devices—perhaps your unused home computer, solar setup, or sensors on your vehicle. Providers contribute these resources to the network, similar to how PoW miners contribute hashing power.

Layer 2: Middleware (Connectors)
This is DePIN’s brain. It continuously collects activity data from each physical device (like sensor readings, bandwidth usage), then packages and transmits this data to the blockchain. Think of it as a decentralized oracle translating real-world info into on-chain data.

Layer 3: Blockchain + Token Incentives
The blockchain acts as both ledger and manager. It calculates each participant’s contribution based on data from the middleware and issues rewards in Tokens. It also handles user transactions—users pay for services, and funds go directly to providers.

These three layers work together to form an autonomous ecosystem.

Why is DePIN’s outlook promising? Five core advantages

1. True decentralization—power distributed to individuals

DePIN disperses control of infrastructure from big corporations to many individuals. Each participant gains influence proportional to their contribution, resembling a “industrial-grade DAO” rather than a traditional company.

2. Lower costs, fairer pricing

Centralized platforms often embed hidden costs like profit margins and management fees. DePIN’s costs are limited to actual operational expenses of providers plus network maintenance. The result? Same services at lower prices for users.

3. Infinite horizontal scalability

Traditional infrastructure expansion usually requires upgrading hardware or increasing capacity per node. DePIN can simply increase the number of providers. Idle resources are activated during high demand, and providers rest during low demand—much more flexible.

4. Permissionless, open participation

Anyone with relevant resources can become a provider. Anyone can use these services. No complex approval processes, no “blacklist” risks—completely open.

5. Incentive mechanisms attract genuine participation

Unlike traditional volunteer efforts, DePIN rewards participants with real money (Tokens). This ensures idle resources generate real value, and providers earn passive or active income.

How does the DePIN “flywheel effect” operate?

DePIN’s most attractive feature is its positive feedback loop:

1. Providers are incentivized to join → contribute idle resources and earn Tokens
2. Users are attracted by low prices → use DePIN services instead of expensive centralized solutions
3. Network scales up → demand for Tokens increases, value rises
4. Higher Token value → attracts more providers and investors
5. Cycle reinforces itself → network effects accelerate growth

Once this positive feedback starts, DePIN projects can achieve self-reinforcing growth.

What do real-world DePIN projects look like?

Wireless connectivity: Helium’s multi-Token strategy

Helium has built a decentralized 5G network. Users place hotspots at home to provide coverage and earn MOBILEToken. Consumers burn HNT to buy connectivity. This is DePIN in action—anyone can become an operator.

Map crowdsourcing: Hivemapper’s community-sourced maps

Hivemapper allows vehicle owners with dashcams to contribute driving videos, helping build real-time updated maps. Participants earn HONEYToken based on coverage area. Unlike Google Maps maintained by large teams, Hivemapper relies on community effort.

Storage networks: Filecoin’s distributed storage

Filecoin connects idle hard drives worldwide into a massive storage marketplace. Providers rent out storage space to earn Filecoin; users pay to securely store data. Cheaper than cloud services, more secure than local disks.

Computing resources: Nunet’s AI computing market

Nunet aggregates idle computing power from around the globe. AI companies buy compute directly when needed, and owners of idle computers earn NTXToken. Making low-end hardware capable of creating value.

Energy revolution: Arkreen’s green energy data

Owners of solar and wind installations contribute generation data to the network and earn Tokens. Green energy certifiers and operators get real energy data. Distributed energy now has a transparent trading market.

Bandwidth sharing: Theta’s media transmission

Theta aggregates viewers’ idle bandwidth to accelerate video streaming. Participants earn THETAToken, and video platforms reduce transmission costs. Anyone can become a CDN node.

Real challenges facing DePIN—not all projects will succeed

Although theoretically perfect, DePIN faces several hurdles in practice:

Cold start problem
DePIN’s flywheel needs enough participants to kick off, but early on, it’s unappealing. Chicken-and-egg dilemma: few users lead to low rewards, low rewards lead to few providers. This is a main reason many DePIN projects fail.

Steep technical barriers
Running a DePIN node requires understanding blockchain, tokenomics, hardware setup. Too complex for ordinary people. Projects need to invest heavily in education and simplification.

Provider cost pressures
Operating physical infrastructure incurs real costs—electricity, maintenance, hardware depreciation. If rewards can’t cover these, providers will quit. Especially acute in early stages.

Uncertain profit models
To attract providers, DePIN must offer competitive rewards. But if user numbers are insufficient, revenue from user payments may not sustain these rewards. Projects might need long-term subsidies to survive.

Technical complexity and risks
As emerging tech, DePIN’s stability and security need time to validate. Malicious actors could exploit vulnerabilities.

Final judgment: Is DePIN the future or a bubble?

From both theoretical and practical perspectives, DePIN represents a potential direction for infrastructure development. It addresses three pain points of traditional centralized systems—high costs, concentrated control, and unfair pricing—through encrypted incentives and decentralized management.

Technologically, current prototypes have demonstrated feasibility. Economically, community-driven models can provide services at lower costs. This benefits users, providers, and even the projects themselves.

But reality is, DePIN is still young. It faces real challenges like cold start, technical complexity, and profit models. Not all DePIN projects will survive, and not all fields are suitable for DePIN.

Core advice: DePIN has long-term potential but requires time and proper execution. If you consider participating or investing, thoroughly research specific projects’ economic models, team backgrounds, and technical viability—avoid blindly following trends. DePIN is a possibility for the future, but not a certainty.