The top 5 DePin projects driving the revolution towards a distributed future

The rise of Web3 is ushering in a dramatic change in the way computing power and storage resources are accessed, transforming the connectivity that underpins the internet.

DePIN, which stands for “Decentralized Physical Infrastructure Networks”, is a groundbreaking shift in the way physical infrastructure is managed and utilized. Unlike traditional centralized systems that are controlled by huge organizations, DePIn leverages blockchain technology to distribute this infrastructure and its control over a network of participants. It’s an approach that enhances transparency, security, and efficiency.

Traditionally, the internet’s underlying infrastructure has always been controlled by large corporations and government entities. They build and maintain networks that are comparable to the energy grid and national transportation systems. However, this centralized approach often leads to inefficiencies, with single points of failure, high costs, and censorship just some of the problems. It has led to limitations around the internet’s scalability and accessibility.

DePIN promises to address these problems, decentralizing the control and operation of internet networks so everyone can participate. It eliminates the single point of failure, reduces costs, and enables unrestricted access. Let’s take a look at five of the most promising companies aiming to build this decentralized future.

1. Hypercycle

In the age of generative artificial intelligence, few DePIN projects are more exciting than HyperCycle , which is building out a fast and secure network for AI models.

The company has created a Layer-0 infrastructure network that supports rapid, low-cost transactions between distributed AI agents or nodes that work in tandem with one another to provide the compute resources required for various number-crunching AI applications. HyperCycle likes to say it’s building an “internet of AIs” that will rival the existing, highly centralized AI companies that dominate the industry today.

Users don’t need to buy a HyperAiBox to participate, though, as they can also use other types of hardware to run a node, including GPUs.

HyperCycle has pioneered some interesting technologies to create this network of AIs, including its HyperPG service that enables nodes to source their energy requirements from low-cost hydroelectric power stations in countries such as Paraguay.

To encourage participation in its network, it has created a specialist server known as the HyperAiBox, which can be purchased relatively cheaply. It’s a plug-and-play device that will immediately start contributing computing resources to the network from the moment it connects to the internet.

2. Space and Time

Space and Time is an innovative project building a decentralized compute layer for the verifiable web – the vision of a future internet where anyone can independently verify both data and transactions.

To realize this vision, Space and Time has created a decentralized, cloud-hosted data warehouse that verified transactions using a combination of on and off-chain data. It does this in a way that ensures the cryptographic secure nature of user’s queries, enabled by its Proof-of-SQL consensus mechanism that leverages zero-knowledge proofs. To empower developers, it has also built a suite of tools that anyone can use to build decentralized applications on its data layer.

Space and Time’s decentralized data layer is built on the unused storage space of thousands of personal devices that make up its distributed network. This makes it a much lower-cost alternative to traditional data warehouses hosted on centralized cloud platforms, such as Snowflake or Amazon Web Services.

The company argues that verifiable computing will pave the way for a new generation of decentralized applications that can ask questions about on-chain and off-chain events and only process transactions when predetermined, real-world criteria is met.

3. Filecoin

Filecoin has created a decentralized storage network that’s intended to store the world’s most valuable data securely. Its network is based on the InterPlanetary File System protocol, which enables data to be distributed and stored across multiple, global nodes, providing redundancy and eliminating censorship.

Anyone can become a node provider with Filecoin, contributing to the free disk space on their devices. Filecon operates a global marketplace where users can buy the storage space they need from various contributors who meet its criteria.

In this way, users have the opportunity to monetize their unused storage, earning FIL tokens by dedicating a portion of their disk space to the network. Their rewards will improve over time thanks to Filecoin’s novel Proof-of-Spacetime consensus mechanism, which has been designed to ensure long-term incentives for users.

Filecoin’s model notably enhances data security while reducing the costs of cloud-based storage, and with FIL ranking 37th on CoinMarketCap with a market capitalization of more than $2.4 billion, the project has firmly established itself as a leader in the DePIN industry.

4. Helium

Established in 2019, Helium Network is another well-established DePIN project that’s leveraging “Internet of things”-based connectivity to build out a low-cost wireless network that spans the entire planet.

With Helium, anyone can join the network and deploy a Hotspot that others can connect to, and in return for donating their connectivity, they’re allowed to mine Helium’s native HNT token as a reward.

The Hotspots leverage Helium LongFi, a long-range WiFi standard that goes well beyond what traditional WiFi is capable of. The network is targeting IoT applications and aims to provide connectivity at significantly lower costs.

The secret sauce is Helium’s Proof-of-Coverage consensus mechanism that incentivizes the network’s growth. To date, Helium has grown to encompass more than 88,000 Hotspots across 8,000 cities globally, providing a more scalable, secure, and resistant alternative to conventional wireless services.

At the time of writing, HNT boasts an impressive market cap of $556.1 million, ranking 110 overall on CoinMarketCap’s exhaustive list of cryptocurrencies.

5. NeurochainAI

NeurochainAI wants to be at the forefront of a decentralized AI industry that benefits everyone equally, all the way up from the biggest organization to the smallest individual.

To create this future, it’s building a kind of one-stop shop for everyone to participate in by providing the compute resources, data, and AI models for next-generation intelligent applications.

The company has created a leading DePIN network that already numbers tens of thousands of devices and may ultimately grow beyond one billion.

As a DeAIAS (decentralized AI-as-a-sevice), anyone can participate in NeurochainAI by making their idle GPU and CPU resources available to developers building AI applications in return for NC token rewards.

In addition to providing computing resources, NeurochainAI is home to a data marketplace where anyone can create and provide the underlying data needed to train AI models. This marketplace also provides opportunities for others to act as validators, verifying the accuracy and integrity of those third-party datasets.

In addition, developers can donate foundational large language models, which others can use and modify. Smart contracts will ensure those developers earn a passive income from any application that integrates their AI models.

DePIN Is Destined For Big Things

Analysts are optimistic about the long-term future and potential of DePIN networks, with some projections indicating that the industry will see significant traction in the next few years. One of the most optimistic recent predictions sees the DePIN market growing to an incredible $3.5 trillion by the end of 2028

This growth is likely to be driven by the increasing demand for high-speed internet services for applications such as video streaming and content delivery, as well as comprehensive and globally available data storage systems for AI workloads.

It’s becoming increasingly clear that traditional centralized networks will be unable to fulfill these needs, which is why the industry is turning to more efficient, inclusive and resilient decentralized infrastructure networks.