DePIN in Crypto Explained: Top 3 Projects in DePIN 2024

Decentralized physical infrastructure (DePIN) is the core focus of multiple top projects. Here are some of the best ones and everything you need to know about them. DePIN, which stands for decentralized physical infrastructure, is one of the fastest-growing crypto narratives. It has reached notoriety due to its seamless integration of various technologies under one umbrella. This particular sector refers to protocols that use blockchain technology to support a global network of physical infrastructure maintained by participants providing the necessary computing resources. However, it is still a nascent category of projects, with many moving components, elements, and challenges to analyze before reviewing some of the top protocols in this list.

Key Takeaways

• What is DePIN? DePIN projects are categorized into Physical Resource Networks (PRN) and Digital Resource Networks (DRN), supporting essential connectivity hardware and digital network resources.
• Top DePIN Projects for 2024 Render Network, The Graph, and Filecoin are leading the DePIN space with innovative approaches to GPU cloud rendering, decentralized indexing, and decentralized storage, respectively.
• Integration and Growth These projects are integrating blockchain, AI, and real-world assets, driving the growth of the Economy of Things (EoT) and making significant strides in their respective sectors.

What is DePIN?

Explained simply, DePIN projects are categorized into two types:

Physical Resource Networks (PRN)

These include hardware systems essential for connectivity, such as wireless internet, energy distribution, and geospatial data. An example is Helium Hotspots, which are similar to internet routers.

Digital Resource Networks (DRN)

These supply the network resources needed to operate physical systems, such as computing assets, bandwidth, decentralized cloud storage, and connectivity. For instance, Eloop, a car-sharing service, partnered with Peaq Network to tokenize 100 Teslas on its blockchain. Peaq utilized MoveID, a self-sovereign identification system, allowing users to own a fraction of a car. Since Tesla cars use AI for geospatial data, Peaq provided MoveID users with services like parking and charging spots.

In this example, the Teslas represent the physical infrastructure, while Peaq Network is the digital resource network supporting it. This scenario illustrates the intersection of AI, real-world assets, tokenization, and blockchain, forming the Economy of Things (EoT), where DePIN is anticipated to be pivotal.

There are some projects that transcend a single category and are part of multiple ones. That’s why you might see some of them listed here and also in our guide on the best AI cryptos.

Render Network (RNDR)

Render Network is an Ethereum-based blockchain platform that aims to decentralize GPU cloud rendering by connecting users needing rendering services with owners of high-performance GPU power. This marketplace allows artists, individuals, and businesses to scale their rendering work more affordably and quickly than centralized GPU cloud systems.

Render Network was a top performer in the DePIN sector, reaching an all-time high of $13.60 in March 2024, surpassing its previous ATH of $7.79 in April 2021. The project has attracted interest from tech giants like Apple, which integrated OctaneRender, Render’s high-performance render engine that operates on Nvidia’s CUDA technology.

Read More: How to Buy Render Token (RNDR)

Key Features of Render Network

Render’s business model involves two main participants: creators who submit rendering jobs and node operators who use spare GPU power to complete these tasks, earning RNDR as a reward. Rendering tasks can range from simple gaming, entertainment, or art jobs to complex tasks involving AI or machine learning (ML).

Render Network employs a multi-tier pricing protocol based on a reputation system. This model democratizes GPU cloud computing for creators, particularly in Web3, and accommodates various budgets. There are three tiers:

• Tier 1 Nodes: The highest-rated and are used mainly by Render’s partners. They offer reliable and scalable services at a higher cost.
• Tier 2 Nodes: Provide high-quality GPU services at a lower cost.
• Tier 3 Nodes: The most economical option.

Founders of Render Network

Render Network (RNDR) was founded by Jules Urbach, who also founded and serves as CEO of OTOY, Inc., a cloud graphics company. The core team includes Kalin Stoyanchev as Head of Blockchain, Joshua Bijak as Project Lead, Charlie Wallace as Chief Technology Officer, Phillip Gara as Director of Strategy, and Jayson Kleinman as Head of Business Development.

Funding and Investors

Render Network completed one fundraising round, securing $30 million from a Seed round on December 21, 2021. The funding came from venture capital firms like Multicoin Capital and Solana Foundation and angel investors like Vinny Lingham.

The Graph (GRT)

The Graph is a decentralized, open-source indexing protocol that collects, processes, and stores data, similar to how a web browser like Google operates. It allows users to explore different blockchain ecosystems and their dApps and is available in at least 14 languages.

Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann founded The Graph in 2018. Two years later, the protocol’s native token, GRT, was launched. GRT has one of the most extensive supplies in the DePIN sector, with a maximum supply of over 10B tokens and about 9.5B in circulation.

Read More: How to Buy The Graph (GRT)

Key Features of The Graph

A key feature of The Graph is Subgraphs, which are indices designed to enhance data querying across various networks, including EVM-compatible blockchains and the InterPlanetary File System (IPFS).

Subgraphs can index all public information globally, bridging Web2 and Web3. This data can be stored, organized, and shared across applications, making it accessible for querying. Users pay for these services with the protocol’s native coin, GRT.

Founders of The Graph

Yaniv Tal —an engineer and tech entrepreneur— aimed to create the first decentralized indexing and querying protocol for blockchain data to simplify dApp development. Before founding The Graph, Tal and Ramirez worked together at MuleSoft, a company specializing in enterprise integration that Salesforce later acquired.

Funding and Investors

According to Crunchbase, The Graph has received approximately $69.6M in funding over eight rounds. The protocol is backed by notable investors, including FinTech Collective, Tiger Global Management, and Blockwall. The latest funding was raised from a Series A round on March 2, 2022.

Filecoin (FIL)

Filecoin is a decentralized storage network that transforms cloud storage into an open market. The protocol is built on the same technology as the InterPlanetary File System (IPFS) and enhances it by adding an incentive layer that ensures data is reliably stored and easily accessible.

Read More: How to Buy Filecoin Standard Hashrate Token (FILST)

Key Features of Filecoin

The Filecoin network functions as a peer-to-peer marketplace, allowing anyone to join as a storage provider or a user needing storage. Economic incentives built into the system promote honesty and reliability among storage providers, ensuring that data is maintained securely over time.

Users can pay to store their files with storage providers using Filecoin’s native token, FIL. The model is simple: decentralized data storage, more competitive pricing, and reliable service compared to traditional cloud storage providers. Additionally, storage providers are judged by their track record —which is published on the blockchain— to promote trust and reliability.

This model supports various use cases, from storing NFT assets to large-scale data for Web3 applications​. Moreover, Filecoin’s decentralized nature makes it resistant to censorship, as no single entity controls the storage network.

Founders of Filecoin

Filecoin was founded by Juan Benet, an American computer scientist who also created IPFS (InterPlanetary File System). Benet is the CEO of Protocol Labs, the company behind IPFS and Filecoin.

Funding and Investors

Filecoin has attracted significant funding from various investors. In its initial coin offering (ICO) in 2017, Filecoin raised $257 million, one of the largest in crypto history. Key investors include venture capital firms such as Sequoia Capital, Andreessen Horowitz, Union Square Ventures, and Winklevoss Capital.

The FIL token’s total supply is capped at 2 billion and distributed through block rewards over several decades. A portion of the tokens is allocated to miners, Protocol Labs, investors, and the Filecoin Foundation, each with specific vesting schedules to ensure long-term commitment and development of the network.

FAQs

What is DePIN in the context of cryptocurrency?

DePIN stands for decentralized physical infrastructure. It refers to protocols that use blockchain technology to support a global network of physical infrastructure maintained by participants providing the necessary computing resources. This sector includes both Physical Resource Networks (PRN) and Digital Resource Networks (DRN).

What are the top DePIN projects for 2024?

The top DePIN projects for 2024 include Render Network, The Graph, and Filecoin. These projects lead the space with innovative solutions for GPU cloud rendering, decentralized indexing, and decentralized storage, respectively.

How does Render Network benefit creators and node operators?

Render Network connects creators who need rendering services with owners of high-performance GPU power. Creators submit rendering jobs, and node operators complete these tasks using spare GPU power, earning RNDR tokens as rewards. This decentralized approach allows for more affordable and scalable rendering services compared to centralized systems.