From physical rewards to solar power: How DePIN works

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Theoretical studies in cryptocurrencies have long predicted that encryption tools currently implemented in the blockchain will be used on the Internet and impact the physical world sooner or later. Nick Szabo noted at the end of the 20th century that smart contracts can automatically manage physical objects. More than 25 years have passed, and the blockchain is firmly embedded in our lives. 

This is primarily due to cryptocurrencies: Bitcoin continues to break records and is supported by significant physical infrastructure. At first glance, this confirms an actual physical presence in our world. 

However, the boundaries of decentralized technologies continue to expand with the advent of solutions such as DePIN.

What is DePIN and why does blockchain need it?

DePIN meaning a Decentralized physical infrastructure network. Blockchain participants use a public ledger and cryptocurrency to build and maintain specific, real-world infrastructure projects. Simply speaking, DePIN involves using DePIN blockchain to run and sustain decentralized networks of equipment that can serve a common purpose. 

This enables the network to be built on decentralized, horizontal connections rather than the hierarchical approach typically seen with large infrastructure projects such as bridges or roads. Building and managing physical infrastructure networks is expensive and complex, so historically, they have been the domain of large corporations or governments with capital and resources.

In contrast, DePIN encourages voluntary cooperation among participants. People can participate in DePIN networks by using their own hardware or purchasing specialized hardware for specific tasks. Options range from simple hard drives to weather stations. However, DePINs are typically built around capabilities that are available to the general public.