DePIN: The Fusion of Blockchain and Infrastructure Network

In the realm of Web3, a unique fusion of blockchain and infrastructure networks, known as Decentralized Physical Infrastructure Networks (DePINs), has emerged. These networks seamlessly integrate into industries such as energy, telecommunications, storage, artificial intelligence, and data collection, offering innovative solutions to pressing challenges.

During the last crypto cycle, numerous projects capitalized on the DePIN hype, targeting industries with vast market opportunities. However, some encountered difficulties in driving sufficient demand and supply for their core products, leading them to pivot towards cryptocurrency token economics.

Among those that persevered, several companies dedicated themselves to building essential infrastructure, achieving sustainable profitability by solving existing problems, even without relying on the flywheel effect of token economics. Here are some compelling examples:

Geodnet

Core Problems Solved: Traditional Global Positioning Systems (GPS) often fall short of the精度required by advanced applications, which demand centimeter-level accuracy rather than the meter-level precision offered by GPS technology. Geodnet Networks’ solutions enhance positioning accuracy by 100 times compared to conventional GPS technology.

Target Customers: The Geodnet network caters to industries heavily reliant on high-density, high-precision geospatial data, including:

Surveying, mapping, and construction

Autonomous vehicles

Precision agriculture

Smart cities

Profit Model: In 2024, Geodnet Networks achieved remarkable revenue growth, exceeding 500% year-over-year, reaching $1.7 million.

Token Economics: The Geodnet network utilizes its native token, GEOD, to incentivize participants, with the following mechanisms:

Miners receive GEOD rewards for contributing to the network's operation and maintaining the infrastructure.

Data consumers pay for accessing and using the precise positioning data, and a portion of these proceeds are allocated to the network participants.

How to Participate and Contribute: There are multiple ways to participate in the Geodnet network:

Become a miner by setting up and maintaining a GN Node, which contributes to the network's operation and data collection.

Utilize the Internet by consuming the precise positioning data for various applications, ranging from surveying and mapping to autonomous vehicles and smart cities.

Develop applications on the Geodnet network to tap into the high-precision geospatial data for innovative solutions.

Participate in governance by voting on proposals to shape the network's future and contribute to decision-making processes.

Helium

Core Problems Solved: Traditional mobile network operators, such as T-Mobile, incur massive capital expenditures to build base stations, maintain infrastructure, and expand coverage. Helium tackles this challenge by creating a decentralized wireless network that utilizes community-owned hotspots to provide affordable, scalable, and resilient network connectivity for mobile and IoT devices.

Target Customers: The Helium Network primarily targets two main customer segments:

Mobile virtual network operators (MVNOs) that offer direct-to-consumer mobile plans.

Mobile network operators that seek to enhance their coverage and capacity by integrating Helium hotspots into their existing networks.

Profit Model: The Helium Network generates revenue in two primary ways:

Direct-to-consumer mobile plans offered by MVNOs, which leverage the Helium Network to provide affordable and flexible mobile connectivity.

Operator WiFi diversion fee paid by mobile network operators to utilize Helium hotspots for offloading traffic from their congested networks.

Financial Performance: As of 2023, the Helium Network boasts over 1 million hotspots deployed worldwide, covering more than 600,000 square kilometers and connecting over 250,000 mobile devices. The network has generated close to $100 million in total revenue.

Token Economics: The Helium Network’s HNT token is at the heart of its incentive and payment structure, with the following mechanisms:

Hotspot owners earn HNT rewards for providing wireless coverage and participating in the network's operation and maintenance.

Data users, such as MVNOs and mobile network operators, pay for network access and connectivity, and a portion of these proceeds are used to compensate hotspot owners.

How to Participate and Contribute: There are several ways to participate in the Helium Network:

Deploy a hotspot to contribute to the decentralized wireless network and earn HNT rewards for providing coverage and connectivity.

Purchase a consumer package, such as a mobile plan from an MVNO that utilizes the Helium Network, to access affordable and reliable mobile connectivity.

Partner with Helium as a mobile network operator to integrate Helium hotspots into your existing network and enhance coverage and capacity.

Participate in governance and staking by voting on proposals and delegating your HNT to support validators that help secure the network.

Akash

Core Problems Solved: Traditional cloud computing providers, such as Amazon Web Services (AWS), Google Cloud, Microsoft Azure, etc., are known for their high costs, scalability limitations, and centralization. Akash Network aims to solve these problems by providing a decentralized cloud computing marketplace that allows users to earn on their idle machines while reducing costs.

Target Customers: Akash Network