Top DePIN tokens: 8 promising projects that are decentralizing physical infrastructure

Decentralized Physical Infrastructure Network (DePIN) is a novel crypto technology that combines real-world physical infrastructure with the benefits of blockchain technology. The technology aims to create a more decentralized system overall by crowdsourcing access to information technology resources.  

DePIN isn't a new technology. However, the term “DePIN” is a new coinage following the rise in interest and arrival of new projects in this category. In this article, we’ll guide you through what DePIN is and explore some of the most promising projects and tokens advancing the technology in 2024. 

What is DePIN?

The world relies on centralized entities controlling most physical infrastructure used in everyday life. DePIN projects look to disrupt this system by decentralizing control and enhancing the existing infrastructure using blockchain technology.

Most DePIN projects involve some form of physical hardware. This could be a router, mobile device, or a conventional computer. These devices act as nodes, giving users ownership over their data and control over how their information is used. 

In the traditional system, companies sell you the hardware but control the infrastructure. That means you don't have true ownership of the product you’ve paid for. For example, you rely on companies to control your smart home devices. And, it may be unclear what the controlling companies will do with your smart home data. Meanwhile, when a company goes out of business, their hardware eventually becomes useless. 

With a decentralized infrastructure layer, you gain full control of your systems, keep your information private, and can choose to share your information with the parties you want, only if you want to. 

Top DePIN projects

Filecoin (FIL)

Filecoin is one of the most popular DePIN projects in 2024, with a market cap of over $3 billion. It's a decentralized peer-to-peer file storage network. Users can store and retrieve data without using centralized companies such as Dropbox or Google Drive. Similarly, users with free storage can also become providers, and prices for storage are dictated by ‌supply and demand. Filecoin has successfully decentralized and stored copies of important databases such as Wikipedia, OpenStreetMap, gnomAD, and many more. FIL is the native token of the Filecoin ecosystem. 

Key features of Filecoin:

• Users can gain FIL tokens by renting out unused storage space. 

• Since the network is decentralized and distributed, it's easy to scale when required. 

• A fair market structure where pricing is determined by supply on an open and transparent marketplace. 

Render (RNDR)

Render is a decentralized GPU platform that users can leverage to render motion graphics, special effects, and 3D environments. Rendering graphics is resource intensive, making it available only to a handful of studios with the necessary resources. However, with the help of Render, anyone can rent out their unused GPU processing units. These units combine to form a powerful GPU cluster that users can rent and only pay for their usage. Like Filecoin, the market determines pricing, and RNDR is used as the token to buy and sell GPU resources. You can learn more about Render in our explainer article. 

Key features of Render: 

• Connects unused GPU power with the graphic artists who require it. 

• Buyers only have to pay for their usage, and avoid expensive upfront setup costs. 

• GPU owners can monetize their GPUs when they’re idle. 

Graph (GRT)

Graph is a decentralized indexing protocol that’s used to organize and access blockchain data. On the network, decentralized applications can build and publish what are known as subgraphs. Subgraphs are open APIs that can be queried to retrieve data when required. Indexers run nodes that serve the subgraphs by staking GRT — the project’s token. Delegators can also stake GRT to signal which subgraphs are important. 

The tool is used by popular decentralized applications such as Uniswap, Lido, ENS, Compound, and many more. They stake GRT to make sure that the indexers prioritize the processing of their subgraphs. 

Key features of Graph: 

• Provides essential infrastructure for existing blockchain applications to query data in a decentralized manner. 

• Developers can build their own subgraphs according to their requirements. 

• The subgraphs are scalable as more node operators join and demand increases. 

Theta (THETA)

Theta is a decentralized video streaming network similar to YouTube. Users can rent out their unused bandwidth and computing power, which is combined to create Theta’s decentralized content distribution network (CDN). Theta operates on its own Ethereum virtual machine-compatible chain with two tokens. The THETA token is used for staking and governance, while the TFUEL token is used for gas and other on-chain activities. Theta’s network enterprise validators include Google, Samsung, Sony, and other major companies. 

Key features of Theta: 

• Provides a decentralized video streaming platform as an alternative to YouTube. 

• Users can generate TFUEL by sharing their unused resources. 

Arweave (AR)

Arweave is a decentralized platform that helps preserve censorship-resistant information forever. It uses a blockchain structure called blockweave where information can be stored and verified with every block. Users can pay AR tokens to store data, and node operators are incentivized to store and serve this information. 

Arweave uses a Proof of Access (PoA) mechanism. With PoA, node operators are required to prove  they have access to data that’s selected randomly. Arweave has expanded its tools to allow users to build decentralized apps, manage databases, and deploy smart contracts. 

Key features of Arweave: 

• Permanent storage of information that’s free from censorship. 

• Node operators are incentivized to both validate new information and store old information using PoA.

Akash (AKT)

Akash is another DePIN project that provides decentralized storage. The tool focuses on cloud computing solutions for hosting applications, competing with Amazon Web Services (AWS) and Google Cloud Platform (GCP). Developers can define requirements for their applications and place an order on the Akash marketplace. Infrastructure providers can bid for orders on an open and transparent platform. Developers can see each bid and choose the one that suits their needs. Akash offers cost-effective and decentralized cloud computing and is expanding its offering to AI applications with Akash compute. AI researchers can rent out computing resources to train their models and only pay for the time used. 

Key features of Akash: 

• Provides a cost-effective alternative to centralized service providers like Amazon and Google. 

• A competitive open market where buyers can get the best prices possible. 

• Easy to scale applications and no lock-in periods for users. 

IOTA (IOTA)

IOTA is one of the most established DePIN projects on our list. It's a blockchain platform used to secure and distribute IoT data. IOTA makes use of an architecture called tangle that has zero fees. Users are required to verify two other transactions every time they make a transaction. This way, every user becomes a part of the network, securing and verifying transactions when making any transaction. It's also designed to run on IoT devices with low resource requirements. 

Key features of IOTA: 

• A highly scalable decentralized platform for IoT devices. 

• Zero fee blockchain that can support IoT devices with low resource consumption.

• Device users can decide how their data is used. For example, a device measuring the weather in real-time could monetize that data and gain IOTA tokens. 

Livepeer (LPT)

Livepeer is a decentralized live and on-demand streaming platform competing with YouTube and Twitch. Node operators provide the infrastructure layer to support transcoding and video distribution. Meanwhile, broadcasters can pay with LPT tokens to have their videos distributed. Livepeer has partnered with other Web3 networks such as Ethereum Name Service (ENS) and Lens Protocol to support the network. 

Key features of Livepee:

• Provides end-to-end infrastructure to serve videos on a decentralized network. 

• Node operators are incentivized with LPT tokens to provide a better video streaming infrastructure. 

What might the future of DePIN hold?

2024 was a significant year for DePIN’s emergence, despite the technology being around for many years before in some form. As more projects deploy and discover real-world applications, the demand for their associated tokens is likely to increase. 

Projects like Graph already make up a significant infrastructure layer in the Web3 ecosystem, while Filecoin offers a decentralized alternative to established companies such as Dropbox. Many expect DePIN to eventually disrupt other important infrastructure, like telecommunications, energy, and transportation. It's also creating new use cases, as shown by Render, where users can rent GPU computing power only when needed, without the heavy upfront costs. 

DePIN has the potential to transform and reshape various industries, creating more use cases for blockchain technology.  

Challenges facing DePIN

DePIN is still an emerging technology with a long way to go before it enters the mainstream. DePIN projects are built to be scalable. However, many projects haven't yet been stress tested through real-world scenarios to judge their resilience and reliability. One major test for DePIN projects could be to onboard a large number of users and successfully scale the project without sacrificing performance or security. 

Other question marks have been raised around security and the technology’s economic feasibility. If projects want to provide infrastructure for sensitive information, they must focus on privacy, which can be hard to achieve on the blockchain. Also, most DePIN projects are relatively inexpensive to use because the technology is still in its infancy and usage isn't too high. If the infrastructure doesn't scale with ‌demand, the economics of DePIN projects might not make sense when compared to centralized alternatives. 

The final word

DePIN has experienced a spike in interest and activity in 2024 after years of steady growth. Now, with  blockchain processing speeds increasing, a significant opportunity exists to decentralize physical infrastructure and bring the advantages of blockchain technology to new forms of physical infrastructure.

In short, DePIN presents a paradigm shift in how we think about the fundamental infrastructure layers we interact with daily. DePIN projects emphasize greater user control over their data, and the fairer distribution of value for all stakeholders. 

As DePIN projects continue to evolve beyond their early stages and capture new use cases, many will be keeping a close eye on the technology and the projects outlined above in the months and years ahead.