Disclaimer: the following is for research purposes only and must not be considered financial advice.

What is DePIN?

What is DePIN?. DePIn is the new buzzword going around the blockchain industry, probably coined by some VC wanting to generate hype to make a return on their investment. However, this shouldn’t discourage us from looking beneath the surface of manufactured hype and analyzing what the real value is there, if any, to find. 

DePIn is an acronym for Decentralized Physical Infrastructure Networks, which sounds redundant when talking about blockchain infrastructure until you realize that in the last couple of years VCs have taken over space and slowly changed definitions and expectations in our industry. Although, not all blockchains are actually decentralized, like Solana which stores their ledger on Google Bigtable. The majority of blockchains run on nodes hosted on Big Tech server farms, also known as “the cloud”, so in principle they are not physical as in bare metal rigs. 

What does DePIN actually mean then? The idea behind it is to use the decentralized nature of blockchain networks and cryptocurrencies’ economic incentives to provide a better service at a lower cost. Which services you may ask? Everything from long term storage to computing power and connectivity. Inside of DePIN we can identify two different subcategories, Physical Resource Networks (PRNs) and Digital Resource Networks (DRNs). PRNs refers to providers who contribute non-fungible resources that are location based services, like for example a World Mobile Airnode so people can connect to the internet in remote places. DRNs refers to providers who contribute fungible resources that are not based in a particular location, like for example computational power for Nunet.

Iagon

The first DePIN project we will take a look at is Iagon. Founded in Hamar, Norway in 2017, aspiring to transform cloud computing by establishing a decentralized processing and storage platform for shared resource profitability. With a commitment to Norwegian law, Iagon has diligently developed its protocol, partnering with Ernst & Young for legal counsel to ensure adherence to legal and ethical standards. Initially focused on empowering individuals to control their healthcare data, Iagon’s vision expanded to encompass diverse sectors recognizing the benefits of decentralized data storage. This evolution led to applications beyond healthcare, including safeguarding intellectual property for corporations, mitigating data loss risks for SMEs, and enhancing security for organizations operating in sensitive environments. To address scalability concerns, Iagon transitioned its token, initially launched as an ERC token, to the Cardano network. Now poised to achieve its goal, Iagon is primed to deliver a secure, private, and cost-effective solution worldwide.

Iagon has established itself as a leader in the cloud computing industry, boasting several key advantages over its competitors. These include a published and protected patent, support from Innovation Norway and acceptance into Skattefunn, a Norwegian tax incentive program for innovative projects. With a live and functional product, Iagon has secured a significant amount of equity funding and onboarded three pivotal pilot customers, with details forthcoming. The company is fully committed to the Cardano ecosystem, positioning itself as the first decentralized cloud solution within it. Bolstered by a strong co-founding team, including Dr. Elad Harison, Dr. Rohit Gupta, Dr. Navjit Dhaliwal, and Dr. Claudio Lima. These achievements solidify Iagon’s position as a pioneer in cloud computing innovation, setting the standard for future projects in the field.

Cloud computing has experienced remarkable growth, with the market expected to reach $832.1 billion by 2025. Despite this expansion, blockchain technology hasn’t been fully embraced, leading to centralized control by major players like Amazon, Google, and Microsoft. This centralization exacerbates issues such as monopolized costs and inadequate data security. Iagon recognized the untapped potential for growth and developed a platform to address these challenges by offering processing power and storage at reduced costs. Their goal is to create a decentralized network of nodes, utilizing unused processing power and storage capacity to build a faster and more secure cloud infrastructure. Iagon’s proprietary encryption technology ensures data security, meeting regulatory requirements such as GDPR. Their protocol aims to set a new standard for handling sensitive information while deploying on the Cardano Network for enhanced decentralization and interoperability.

Centralized platforms like Google and Facebook have propelled the development of fast and affordable applications, yet they rely on exploiting user data, leaving users with little control over their information. In contrast, Iagon embraces a decentralized approach, eliminating central entities from storing or accessing files. Users can select a drive tailored to their needs, with the protocol generating relevant NFTs on the Cardano blockchain. This framework ensures user control over uploaded files. Unlike conventional web practices reliant on cookies to track user activity for targeted advertising and data sale, Iagon enforces strict privacy policies, including a zero-cookie policy. Users can browse anonymously, with no data monetization possible without explicit consent. This commitment underscores Iagon’s dedication to prioritizing user privacy and data ownership.

As of February 24th, Iagon reported 308 nodes online across 47 countries with almost 2 petabytes of storage available.

More recently on March 18th, Iagon posted on X(Twitter) asking for user testimonials. Related to talks with a Web 2 enterprise generating revenue of 100+ billions.

For more information about Iagon, visit their website, discord and follow them on X(Twitter).

Nunet

The second DePIN project we will take a look at is Nunet. In today’s digital landscape, the demand for computing power and storage has reached unprecedented levels, fueled by the exponential growth of global data volumes and computational needs. However, traditional computing infrastructures have often been fragmented and inaccessible to many due to economic and social barriers. Enter NuNet, a groundbreaking computing framework poised to revolutionize decentralized networks. Bridging the gap between data owners and computational processes by intelligently connecting them with available computing resources worldwide. Not only does NuNet optimize the utilization of latent computing power within communities, but it also establishes intelligent interoperability between computational processes and physical infrastructures. 

Born as a spinoff of SingularityNET Global AI Marketplace and incubated through its X-Lab Accelerator program, NuNet represents a new paradigm in global computing. With a focus on flexibility, interoperability, and affordability, NuNet is set to democratize access to cutting-edge AI and machine learning technologies, unlocking vast economic and social value previously trapped within siloed computing environments. As the demand for advanced computing solutions continues to soar, NuNet stands at the forefront, paving the way for a decentralized “world computer” that empowers individuals, researchers, and businesses alike.

NuNet’s ambitious vision encompasses the creation of a comprehensive framework that fosters interoperability and transactions across a diverse array of computing resources, code, data sources, and storage. This framework aims to establish a dynamically evolving Global Economy of Decentralized Computing, where accessibility to resources and processes is significantly enhanced. In NuNet’s fully functional ecosystem, computing resource owners, storage resource owners, computational process owners, and data owners will be empowered to express and publish their specialized capabilities, requirements, and offerings, facilitating seamless interactions and transactions within the network. 

Participants will have the flexibility to express their preferences for resource usage and compensation, ensuring a fair and efficient allocation of resources. NuNet’s self-regulating mechanism will oversee interactions among providers and consumers of data and compute services, as well as network operations agents, ensuring the correct execution and compensation for services rendered. 

As NuNet evolves, it envisions facilitating complex ad-hoc workflows, leveraging diverse decentralized computing networks and frameworks, ultimately establishing a global economy of decentralized computing processes governed by its tokenomic framework. Through its innovative approach and commitment to decentralized principles, NuNet is poised to revolutionize the landscape of computing and usher in a new era of decentralized economic activity.

For more information about Nunet, visit their website, discord and follow them on X(Twitter).

World Mobile

The third and final DePIN project on Cardano that we will take a look at is World Mobile. In an age where connectivity has become synonymous with progress, the traditional models of network infrastructure delivery face significant challenges. However, a shared economy model offers a promising alternative, presenting opportunities for enhanced efficiencies in both design and operation, while ensuring a more fluid delivery of connectivity to users. At the heart of this model lies blockchain technology, heralding a new era of innovation by eliminating intermediaries and reducing costs in the delivery mechanism. Blockchain facilitates the rapid expansion of networks through transparent smart contracts, providing participants with a verifiable and guaranteed rewards system. This solution not only addresses affordability concerns but also promotes the more efficient utilization of network resources, ultimately enabling connectivity to be delivered in a distributed and decentralized manner. As we embark on this journey towards a more connected world, the fusion of shared economy principles and blockchain technology offers a beacon of hope for bridging the digital divide and unlocking the full potential of global connectivity.

By decentralizing responsibility for operating and maintaining the network, World Mobile shifts towards a collaborative approach involving communities and local businesses. The creation of this sharing economy not only leads to lower operational costs but also promotes more efficient resource allocation. Additionally, the token-based nature of this sharing economy model enhances scalability, allowing for widespread deployment. Unlike traditional centralized network operators, which struggle to keep pace with fluctuating capacity and demand requirements, this model empowers communities to drive network growth based on their evolving needs. By incentivizing communities and businesses to become node operators, participants gain a stake in the economy while contributing to network coverage in their respective regions. This collaborative approach not only enhances network efficiency but also fosters a sense of ownership and empowerment within local communities.

The proposed sharing economy model by World Mobile relies on a distributed network architecture consisting of three types of nodes: Earth Nodes, Air Nodes, and Aether Nodes.

• Earth Nodes (backend) act as the system’s central intelligence, managing user identities, financial transactions, and telecommunications functions. They are strategically located worldwide for optimal performance.
• Air Nodes (antennas) serve as the access layer, providing connectivity to users in various hardware configurations based on location and capacity needs.
• Aether Nodes interface with legacy telecommunications networks, managing protocol translations and traffic routing.

This architecture enables efficient, scalable, and decentralized delivery of network infrastructure and connectivity services, facilitating a more accessible and affordable telecommunications ecosystem.

Positioned as one of the largest DePIN projects, World Mobile activates a paradigm shift by promoting a more inclusive and participatory model for shaping future infrastructure, offering rewards to participants worldwide. Their adaptive connectivity solutions, including aerostats and AirNodes, effectively address the challenges of guaranteeing smooth user connectivity and complex backhaul issues, particularly in remote areas. Utilizing a dynamic strategy that incorporates various technologies, World Mobile ensures efficient and reliable network connectivity, paving the way for a decentralized, connected future where opportunities abound and inclusivity reigns supreme.

On October 9th 2023, World Mobile announced the launch of the first commercial telecoms aerostat in Mozambique. Bringing connectivity to rural areas.
https://worldmobile.io/blog/post/world-mobile-launches-africa-s-first-commercial-telecoms-aerostat-bringing-connectivity-to-rural-mozambique-1

In this recent X(Twitter) post by World Mobile, they reported having 5 AirNodes in the USA, 638 in Zanzibar and 831 in Pakistan. For a total of 1474 AirNodes.

For more information about World Mobile, visit their website, discord and follow them on X(Twitter).

Conclusion

What all these projects have in common is the idea of a shared economy model to deliver network infrastructure more efficiently than previous centralized services ever could. The advancement of decentralized networks fueled by the success of blockchain technology in the finance realm, is now spilling over to other services like storage, computing and connectivity. Cryptocurrencies have proclaimed their goal of “banking the unbanked” for a long time now, its results so far are questionable, but perhaps these new initiatives of “connecting the unconnected” and building a decentralized shared economy will be more successful in their endeavor. More importantly, if successful, they could be the agents of change for a lot of people that still associate blockchain or crypto with scams and speculation. Only time will tell, but for now its time to keep building.