Come get your Bread&Butter: DePIN is About to Deepen Your Pockets

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May 21, 2024

Welcome Back! count: 655 words…. 5min read. Don’t be lazy knowledge is power. Copy edited by Anthony Snaggs, Ion Ageday, and Kervins Valcourt

DePIN is About to Deepen Your Pockets
By Kervins Valcourt

🧈 OK, let’s get to the butter: DePIN, or Decentralized Physical Infrastructure Networks, is the hot new thing in crypto that's bridging the physical world with blockchain. Imagine getting rewarded in crypto for contributing to networks like WiFi, data storage, or even car-sharing. It's like making your daily stuff pay you back. With a market cap of over $26 billion, DePIN is not just a buzzword—it's deadass a thing.

So, what’s DePIN all about? It’s simple. People contribute physical resources like routers, sensors, or even energy grids to a network. In return, they get paid in the network’s native tokens. Think of it as crowdsourcing on steroids. For instance, Silencio Network uses people's phones to collect noise data and rewards them with tokens. ELOOP Network took it a step further by setting up a car-sharing service with Teslas in Vienna, using tokenization.

The beauty of DePINs is that they decentralize traditionally centralized services. Instead of big corporations owning everything, it's the community that powers these networks. And with enough participants, these networks become self-sustaining and can offer services cheaper than traditional corporations.

Here’s how DePINs work:

1. Physical Infrastructure: This includes data transmission facilities managed by private providers. Think routers, sensors, and other networking equipment.

2. Blockchain Architecture: DePINs use blockchain for smart contracts, fee transactions, and participant rewards.

3. Off-Chain Network: Participants buy or provide resources like computing power or data storage, often from external providers.

4. Token Rewards: Contributors earn tokens for their resources, incentivizing more participation.

DePINs come in two flavors:

• Physical Resource Networks (PRNs): These reward users for providing location-based resources like connectivity or geospatial data.

• Digital Resource Networks (DRNs): These include digital resources like storage or computing power, not tied to any location.

The DePIN flywheel is a self-sustaining cycle. More participants mean a stronger network, which attracts more users, driving up token value and bringing in more contributors. It’s a win-win, making the network bigger and more valuable.

🍞 Now, how do we get to the bread? Let’s talk about the top tokens you should have on your radar. Since AI has been poppin’ off real. We need to look in the DePIN and AI space, we’ve got heavy hitters like Internet Computer (ICP), Fetch.ai (FET), Render (RNDR), The Graph (GRT), Bittensor (TAO), Arweave (AR), Filecoin (FIL), and Theta Network (THETA). These are the big names making waves.

Recent updates and announcements driving some serious gains out here. Analysts on X (formerly Twitter), like @ourcryptotalk, have been diving deep into these tokens, especially those linked to NVIDIA. RNDR, for example, connects users with GPU owners for digital creation, making transactions smooth and rewarding users with tokens. It’s a big player in the space.

Then there’s Bittensor, which rewards Machine Learning (ML) models with TAO tokens, boosting transparency and innovation in AI. TAO is another early giant you don’t want to ignore.

THETA is also making moves, offering GPU computing and blockchain for payments. With a team of experts from Netflix, Amazon, Samsung, Vimeo, and Salesforce, they’re blending blockchain with streaming and AI like no one else.

These top projects—RNDR, TAO, and THETA—are the ones to watch. They’ve got strong ties to AI, ML, and computational advancements, and they’re poised to gain big from the latest developments. So, these are the tokens to consider if you’re looking to ride the wave. HODL tight and keep an eye on the bull market!

THETA offers GPU computing and blockchain for payments, attracting AI enthusiasts. The team features leading experts from giants like Netflix, Amazon, Samsung, Vimeo, and Salesforce, bringing blockchain and streaming expertise to AI and crypto.

These are the three large market capitalization projects with close association to AI, ML and computation that stand to gain from the developments this week.

We discussed DePIN before, so check out this article for other projects.

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