<p>In recent times, the Helium Mobile project within the Solana ecosystem has gained immense popularity, with its token MOBILE experiencing a meteoric rise, reaching a market capitalization of up to $700 million. Subsequently, the DePIN track, affiliated with Helium Mobile, has garnered widespread market attention, becoming a significant narrative after BTC scripture and protocols.</p><p>What is DePIN? Apart from Helium Mobile, what other promising conceptual projects exist? What security risks are associated with them? Today, the Beosin team will break down these aspects for you</p><h2 id="header-0">Origin of DePIN</h2><p>DePIN (Decentralized Physical Infrastructure Networks) refers to decentralized physical infrastructure networks that incentivize individuals and businesses worldwide to build any physical infrastructure (WiFi, hard drive storage, batteries, etc.) in a decentralized manner using blockchain technology and token rewards, providing services for everyone.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/42b18652c5f8415ca22656e8d7d280a3.png" /><p>Previously, there was no unified description for this emerging track. In 2019, Kyle Samani, a partner at Multicoin Capital, referred to related decentralized physical infrastructure projects as the “Internet Infrastructure Stack.” In 2021, IoTeX, focusing on the IoT public chain, named this track MachineFi, and later, other names like “Token Incentived Physical Network” emerged. In November 2022, Messari conducted a vote on the name of the Web3 physical infrastructure track, and DePIN became the unified name thereafter.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/651fec771c9348a6a12573ccd9b0929d.png" /><h2 id="header-1"><strong>DePIN Conceptual Projects and Their Risks</strong></h2><p>DePIN covers a wide range of industries, categorized by Messari as Physical Resource Network and Digital Resource Network, depending on the hardware, resources, goods, and services provided by the network.</p><p>Representative projects in each domain are as follows:</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/a4ba448018b84d1dadcbf4d154e16387.png" /><h3 id="strong-1-helium-and-helium-mobile-strong"><strong>1. Helium and Helium Mobile</strong></h3><p>Helium is a decentralized wireless network protocol. Since 2017, Helium has utilized blockchain technology and token incentives to encourage users to deploy wireless networks. The concept of its decentralized network and the low entry barrier of Helium hotspots have attracted a considerable number of participants. As of the end of 2021, the total sales of Helium hotspots exceeded $250 million.</p><p>In 2022, due to the low number of users utilizing the Helium network and insufficient rewards for Helium network nodes, the monthly income for a Helium hotspot device dropped to only $20. Consequently, Helium decided to migrate to the Solana network to attract more users.</p><p>During the migration, Helium’s subsidiary, Helium Mobile, provided SIM cards and free trials to its mobile users through Solana Labs’ Saga phone. On December 6, 2023, Helium Mobile launched a $20 unlimited monthly phone plan in the United States, covering data, messaging, and calling services. Users who purchase this plan receive an NFT and participate in the airdrop reward of MOBILE tokens.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/8c08a9870b384e2a9059fb1c28b6e343.png" /><p>Helium Mobile’s business model resembles that of a telecommunications operator, offering affordable phone plan services. Users can acquire MOBILE tokens through eSIM. The business flywheel for Helium Mobile involves attracting users through low-cost services and tokens, with user growth driving the increase in token prices, thereby attracting more users to pay for Helium Mobile services.</p><p>Currently, the MOBILE token serves only as the governance token for Helium Mobile. Its current market value exceeds $400 million, with a fully diluted valuation exceeding $1.1 billion. Users should exercise caution regarding short-term speculative risks.</p><h3 id="2-iotex">2. IoTeX</h3><p>IoTeX is a decentralized IoT public chain that aims to combine blockchain, trusted hardware, and edge computing to achieve a trustworthy IoT. IoTeX’s ecosystem covers various tracks, including DePIN, according to EagleEye on-chain data analysis.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/a98a4fb7d7054db89dbf18fe29cbc533.png" /><p>IoTeX’s token, valued at approximately $600 million, has over 90% in circulation.</p><h3 id="strong-3-dimo-network-strong"><strong>3. DIMO Network</strong></h3><p>DIMO Network is an IoT platform that allows drivers to collect and share vehicle data to earn DIMO tokens. DIMO Network completed a $9 million funding round in 2022, connecting over 28,000 cars.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/4ea32acc0ff44d01b779a099366f1e8b.png" /><p>DIMO’s token, DIMO, has a market value of over $96 million, and users trading it should be aware of price volatility.</p><h3 id="strong-4-streamr-network-strong"><strong>4. Streamr Network</strong></h3><p>Streamr Network is a decentralized network aiming to collect and publish low-latency real-time data streams from IoT sensors, machines, and other smart devices. Streamr has cooperated with DIMO Network, Swash, and other data platforms.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/a53df2f329bb44cdbcd6705b8ed92f56.png" /><p>Streamr’s token, DATA, has a market value of over $70 million, with potential centralized risks identified by EagleEye.</p><h2 id="header-2">Impact and Significance of DePIN</h2><p>Compared to traditional physical infrastructure networks, DePIN offers several advantages:</p><h3 id="1-quick-launch">1. Quick Launch</h3><p>DePIN projects require only a fraction of the operational and maintenance costs compared to traditional hardware infrastructure companies. By significantly reducing upfront capital requirements and using token incentives, DePIN can be launched with costs ranging from hundreds of thousands to millions of dollars, lowering industry entry barriers and achieving faster deployment than traditional projects.</p><h3 id="2-community-first">2. Community First</h3><p>In DePIN, the community owns all hardware that constitutes the network, providing products and services the community needs and uses. DePIN community users are not dependent on companies and enterprises primarily interested in profit and financial reports. This alignment of interests promotes the adoption and growth of DePIN services.</p><h3 id="3-open-governance">3. Open Governance</h3><p>Unlike traditional infrastructure projects governed by a centralized entity dictating terms and conditions, DePIN is open, democratic, and easily accessible. Anyone, anywhere, can use DePIN’s services, and anyone can participate in building the physical infrastructure that benefits them.</p><h2 id="header-3">Conclusion</h2><p>Due to market liquidity and the recovery of sentiment, the DePIN track and its conceptual projects have gained significant popularity and influx of funds in a matter of weeks. DePIN is an application layer aimed at real-world users, presenting massive potential for promotion to Web2 users and businesses, ushering Web3 into a phase of widespread adoption.</p><p>However, users should be aware that for DePIN projects, the current narrative and flywheel effects are apparent, closely tied to market conditions. The current high demand for Hivemapper, Render, Helium, and Helium Mobile, all within the Solana ecosystem, is partly due to Solana’s recovery. As the market matures and projects develop, the evaluation of project value will ultimately return to profitability rather than narratives and speculation. The ability of DePIN track projects to truly implement a profitable model, the security of their smart contracts, and their stable development and implementation remain unknown variables.</p><h2 id="header-4">Contact</h2><p>If you need any blockchain security services, welcome to contact us:</p><p><a href="https://beosin.com/" rel="noopener noreferrer nofollow">Official Website</a> <a href="https://www.beosin.com/resources/www.eagleeye.space" rel="noopener noreferrer nofollow">Beosin EagleEye</a> <a href="https://twitter.com/Beosin_com" rel="noopener noreferrer nofollow">Twitter</a> <a href="https://t.me/beosin" rel="noopener noreferrer nofollow">Telegram</a> <a href="https://www.linkedin.com/company/beosin" rel="noopener noreferrer nofollow">Linkedin</a></p>

DePIN Spotlight: Assessing Development, Ecosystem, and Challenges

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