The Rise of DePIN (Decentralized Physical Infrastructure Networks) and Why Investors Are Calling It the Next Big Thing

Cryptocurrency and blockchain continue to produce new concepts nearly on a yearly basis. Others go out of business within a short period and there are those that become worldwide campaigns. At this point, the latest and strongest thought that is being paid attention to is that of DePIN, meaning Decentralized Physical Infrastructure Networks. It is already described as the next big thing by investors and those who love technology. However, what is so strong about this conception and why are people so much interested in it?

DePIN deals with the utilization of blockchain to operate and develop physical infrastructure such as energy, internet, transportation and even storage facilities. These services are normally regulated by large corporations or the state.

As an example, when I desire electricity I rely on the power company. In case I require internet, I rely on the telecom companies. But DePIN changes the game. It enables non-esteemed individuals to create, share and own their portions of such systems and rewarded with blockchain tokens.

Helium Network is one of the first DePIN projects which can serve as a good example. It enables individuals in different parts of the world to install small wireless devices covering the internet.

Rather than having a single large telecommunications company control the whole system, thousands of people are putting up smaller parts of the network and receiving compensations in terms of crypto tokens. This implies that the power does not lie with few people anymore, but is distributed among the people.

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This is a very exciting concept to us in Nigeria. Basic infrastructure is not very trustworthy. Electricity may go off by hours, internet may be too costly and transport systems may collapse. Should DePIN gain popularity, then it can enable the Nigerians to develop their own solutions.

Consider a situation whereby communities would unite to form a common network of solar power and be rewarded in doing so. Or individuals installing small internet connections in the country, and making tokens as they assist their neighbors. This is the reason, why in my personal opinion, DePIN has enormous African potential.

Investors are diving into DePIN as they are realizing that it is not only solving problems online. Lots of crypto projects in the early times were simply about trading or minting digital coins having no serious purpose.

But DePIN links blockchain with tangible infrastructure which is required by all. Services, which will never become valueless, are energy, internet, storage, and transportation. This puts DePIN in a better position than most other crypto projects.

The second factor that makes investors think it is the next big thing is that DePIN promotes community ownership. Rather than a company raking billions as people continue to pay bills, DePIN enables the people to divide the profits among the people who construct the system. Such fairness will not only bring money but loyalty as well among the users.

I think that the emergence of DePIN is the indication that blockchain is eventually leaving the realm of speculation and entering practice. I am a Nigerian and I am aware of the way it may transform our story. Implementing it would leave communities self-sufficient in their own power, internet, and transport solutions without having to wait on the government or major companies. This is what investors are aware of and this is why they are throwing money into DePIN projects.

To sum up, DePIN is not only another trend in crypto. It is a connection between computer technology and the material demands. It puts the power in the hands of people, it finds solutions to actual problems and it rewards the participants. This is the reason why investors are referring to it as the next big thing and I agree with them.