Types of DePINs

Categorizing DePINs (Decentralized Physical Infrastructure Networks) can be challenging, as DePIN solutions have become comprehensive due to their increasing establishment in various industry sectors. Nevertheless, most DePINs can be grouped into primary categories that reflect their main functions and applications. This classification should help understand the various approaches and techniques used to create decentralized physical infrastructures.

1. Compute and Processing

DePINs in the Compute and Processing sector offer decentralized alternatives to traditional cloud computing services. These networks leverage unused computational resources from distributed CPUs and GPUs to provide scalable and cost-efficient processing power. This approach is particularly valuable for handling complex calculations and data-intensive applications such as scientific simulations, machine learning, and 3D rendering. The decentralized model harnesses the combined computing capacity of numerous small nodes, dynamically distributing the workload to enhance efficiency and reliability. This method reduces dependency on major centralized cloud providers and promotes a more equitable distribution of computational resources. For example, scientific research, which often involves intricate simulations and extensive data analysis, can be significantly accelerated using distributed computing resources. Similarly, rendering 3D graphics for movies or video games, which typically demands high-performance GPUs, can be made more efficient and accessible through decentralized networks. Furthermore, these networks support general infrastructure computing requirements, including serverless computing, microservices, big data processing, and edge computing. This holistic approach ensures that a wide range of computational needs is met, fostering innovation and efficiency across various sectors.

2. Storage and Data Management

In the Storage and Data Management sector, DePINs distribute data across multiple nodes to ensure high security and redundancy. These networks often employ advanced techniques like data fragmentation and encryption to protect data from loss and unauthorized access. Data fragmentation involves breaking down data into smaller pieces and storing them across different nodes, which enhances security and ensures data remains accessible even if some nodes fail. Encryption further secures the data, making it nearly impossible for unauthorized users to access it. Decentralizing data storage reduces reliance on centralized solutions, enhancing the resilience and availability of data. Such networks are especially beneficial for applications requiring secure and reliable storage of large data volumes, including backup services, decentralized databases, and blockchain-based storage solutions. Participants are incentivized to provide storage space, lowering costs and maximizing the utilization of existing resources. By spreading data across a decentralized network, these solutions ensure high availability and robustness, which is critical for services that need to operate continuously without downtime.

3. Networking and Connectivity

DePINs in the Networking and Connectivity sector aim to provide decentralized network infrastructures supporting various types of internet connectivity, such as wireless connections (5G, WiFi) and virtual private networks (VPNs). These networks utilize distributed nodes to ensure broad coverage and robust connections, particularly in areas underserved by traditional internet service providers. Participants who provide and operate nodes are often rewarded with tokens. These networks not only enhance the availability and stability of internet connections but also contribute to digital inclusion by expanding access to internet services. For example, decentralized networking can significantly improve connectivity in rural and remote areas where traditional infrastructure is lacking. By using a mesh network of distributed nodes, these systems can provide internet access to places that are typically off the grid, helping bridge the digital divide. Additionally, decentralized VPNs enhance user privacy and security by encrypting internet traffic and masking user identities. Bandwidth-sharing networks allow participants to share their unused internet bandwidth, optimizing the utilization of existing resources and enhancing overall network performance.

4. Sensor Networks and IoT

Sensor Networks and IoT DePINs collect and transmit real-time data from the physical world through a variety of connected devices. These networks are applicable in numerous areas, including environmental monitoring, transportation, and urban management. Sensors capture vital data such as air quality, weather conditions, traffic patterns, and urban activities. Decentralizing the collection and processing of this data improves accuracy and decision-making. In environmental monitoring, for example, decentralized sensor networks can provide continuous and real-time data on air quality and weather conditions. This information is crucial for public health and safety, allowing for prompt responses to environmental danger. In transportation, IoT sensors can monitor traffic flow and optimize route planning, reducing congestion and improving efficiency. For smart cities, these networks facilitate the development of intelligent urban environments by integrating data from various sources to optimize infrastructure and services. Additionally, they optimize supply and logistics chains by providing precise and up-to-date data, enhancing efficiency and reducing operational costs. Applications extend to industrial automation, enhancing manufacturing processes, and smart agriculture, where precise data collection improves crop yields.

To gain a more granular insight into DePIN categories, you can explore the DePIN Hub (opens in a new tab), a resource provided by Hotspotty which is connected to the Helium project.

These primary types represent the four general DePIN sectors. While most DePINs focus on the provisioning of one type of resource and the associated services, such as serverless computing services, storage services, VPN services, varisou IoT solutions etc., there is also another DePIN approach that aims to integrate multiple general DePIN approaches to offer a more comprehensive platform capable of providing more specific-oriented solutions, such for example is as a complete cloud infrastructure solution. These types of DePIN solutions can be referred to as Hybrid DePINs, as their building requires the integration of several infrastructure resources, and they are built to utilize these resources for specific systems and services. This is the approach that the Logos Project aims to pursue.

This approach should still be treated with caution as it brings numerous technological challenges. Hybrid DePINs, in general, could become the core infrastructure layer of Web3 if the right solutions are identified and provided. From our perspective, the Web3 core infrastructure, or the Web3 physical infrastructure layer, is understood as the physical layer on which any blockchain infrastructure component can be executed, regardless of the technology. Every blockchain network requires physical components to operate. This example illustrates what a Hybrid DePIN aims to solve and how it deviates from commonly known concepts. Even though, fundamentally, it is a DePIN that provides and manages infrastructure resources, it differs from the general definition as it attempts to solve a more complex problem. This requires not only the general DePIN approach but also the development of new protocols that allow various decentralized resources to be utilized collectively.

Even though there are interesting approaches and concepts, it will still take time for such Hybrid DePINs to become established, as there are still technological hurdles that need to be overcome before hybrid solutions can be considered established and readily available. In contrast, there are already several established DePINs from all four general sectors that enrich the Web3 sphere by offering decentralized services, decentralized at every layer (from physical to service).