The Integration of Blockchain and Physical Infrastructure: The Rise and Development of DePIN Projects

Decentralized Physical Infrastructure Networks (DePIN) are becoming a frontier in the integration of blockchain technology and traditional infrastructure. This innovative concept has currently emerged in various industries such as energy, telecommunications, storage, artificial intelligence, and data collection.

In the last cycle of the cryptocurrency market, many projects seized the DePIN craze and aimed at the huge market opportunity. However, when the core products of these projects failed to gain sufficient appeal on both the supply and demand sides, many companies shifted their focus to the tokenomics of cryptocurrencies.

It is worth noting that among the projects that have successfully weathered market challenges, some companies choose to invest time and effort in building solid infrastructure. By addressing real existing problems, these projects have achieved sustainable profit models, even without overly relying on the drive of token economics. Let's take a closer look at a few typical cases.

Geodnet: Improve Global Positioning Accuracy

Core Issues and Solutions

Traditional Global Positioning Systems (GPS) often struggle to meet the accuracy requirements of some advanced applications, which demand positioning accuracy at the centimeter level rather than the meter level. The Geodnet network, through its innovative technology, enhances positioning accuracy by 100 times compared to traditional GPS, opening up new possibilities for high-precision geospatial data applications.

target market

The services of the Geodnet network primarily target industries that rely on high-precision geospatial data, including but not limited to:

• Autonomous Driving Car
• Precision Agriculture
• Smart City Construction
• Defense and Security System
• Space Exploration Project

Business Model

The profit model of Geodnet mainly includes the following aspects:

1. Data Authorization: Selling high-precision geospatial data to commercial clients.
2. Node participation fees: Revenue related to the installation and use of mining machines.
3. Strategic Cooperation: Establish partnerships with industries such as agriculture and autonomous driving systems to integrate Geodnet network services into existing workflows.

According to the report, the Geodnet network's revenue in 2024 increased by more than 500% year-on-year, reaching $1.7 million, demonstrating strong growth momentum.

Token Economy System

The Geodnet network uses its native token GEOD to incentivize network participants:

• Miners receive token rewards based on their data contribution and network uptime.
• Introduce a token burn mechanism to destroy a portion of tokens during data transactions, creating a deflationary effect.
• The average daily earnings for each miner is approximately 4.30 dollars, with an expected investment recovery period of 3-4 months.
• The token allocation plan aims to ensure liquidity while incentivizing early adopters.
• GEOD token is used for payments, staking, and governance participation within the network.

Participation Method

1. Become a miner:

   • Purchase mining equipment (cost between 500-700 dollars)
   • Set up and connect the mining machine to the network, uploading 20-40GB of data each month.

2. Use Network:

   • Obtain real-time dynamic (RTK) correction data through subscription or direct purchase.

3. Develop Applications:

   • Data based on the Geodnet network is used to develop specialized software for specific industries.

4. Participate in governance:

   • Participate in protocol governance by staking GEOD tokens and voting on proposals.

Helium: The Pioneer of Decentralized Wireless Networks

Core Issues and Solutions

Traditional mobile network operators face the pressure of huge capital expenditures, needing to build base stations, maintain infrastructure, and continuously expand network coverage. Helium addresses this issue by creating a decentralized wireless network. This network utilizes community-owned hotspots to provide affordable, scalable, and resilient network connections for mobile and IoT devices.

Target customer

• Individual users: Enjoy unlimited data services for $20 per month.
• Telecom providers: Reduce infrastructure costs through WiFi offloading
• IoT device manufacturers: Providing LoRaWAN protocol connectivity for low-power IoT devices.
• Enterprises and institutions: Deploy dedicated wireless networks for asset tracking, sensors, and environmental monitoring

Business Model

The Helium network primarily generates revenue through two channels:

1. Consumer-oriented mobile plans: Provides an unlimited data plan of $20 per month, allowing users to simultaneously use Helium network hotspots and partner networks.

2. Operator WiFi diversion fee: Charge telecommunications providers $0.50 per GB to offload data through decentralized hotspots on the Helium network.

Financial Performance

• Subscribers: Direct subscribers exceed 100,000, and indirect WiFi offload users exceed 300,000.
• Revenue: Generated a seven-figure annual income from mobile subscriptions and carrier diversion fees.
• Future Outlook: With the expansion of partnerships with operators, it is expected that the potential annual revenue from WiFi offloading services alone could exceed $50 million.

Token Economy System

The HNT token of the Helium network is at the core of its incentive and payment structure:

• Reward mechanism: Hotspot operators earn HNT by providing network coverage and transmitting data.
• Application scenarios: Tokens are used for network transactions, payment network services, and participation in governance proposals.
• Deflationary mechanism: The HNT token is burned when used to pay for network services, reducing the total supply.

Participation Method

1. Deployment hotspots:

   • Purchase and set up compatible hotspot devices to provide network coverage and earn HNT rewards
   • You can choose from 16 approved hardware types, including IoT and mobile diversion devices.

2. Subscription Service:

   • Subscribe to the $20 monthly mobile plan for affordable mobile data coverage.

3. Carrier Cooperation:

   • Telecom providers can integrate with the Helium network to offload data traffic and reduce operational costs.

4. Participate in Governance:

   • Stake HNT tokens to participate in network governance, propose suggestions, and vote on key upgrades.

Akash: A New Paradigm for Decentralized Cloud Computing

Core Issues and Solutions

Traditional cloud computing providers like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure face issues such as high costs, scalability limitations, and centralization. The Akash Network addresses these problems by offering a decentralized cloud computing marketplace, allowing users to monetize idle machines while reducing costs for customers.

Target Customer

• AI Developers: Need high-performance GPUs to train and deploy machine learning models
• Startups and large enterprises: need cost-effective and scalable cloud computing resources to support data processing, storage, and AI-driven applications.

Business Model

The Akash network generates revenue in the following ways:

• Market transaction fees: Charges for computing resource leasing and payment transactions.
• Computing resource leasing: Revenue sharing from GPU and CPU leasing, mainly used for AI training and workloads.
• Developer Tools: Charge developers for API integration and SDK licensing fees for using its computing infrastructure.
• Enterprise Cooperation: Collaborate with AI laboratories and decentralized platforms to expand computing power

Financial Performance

• Annual Revenue: $2.5 million from calculated leases and fees in 2024.
• Growth Rate: Due to the popularity of AI, the demand for GPU computing resources has increased by 33 times.
• Network scale: Currently supports over 400 GPUs

Token Economy System

The Akash network uses the AKT token for payment, governance, and incentives:

1. Purpose:

   • Payment: The buyer uses AKT to purchase computing resources
   • Staking: Providers stake tokens to gain work opportunities and enhance their reputation.

2. Incentive Mechanism:

   • Providers earn AKT tokens by supplying computing resources.
   • Tokens are allocated based on uptime, performance, and task completion.

3. Governance Participation:

   • Token holders can propose upgrades and vote on protocol changes.

4. Deflation Mechanism:

   • Network fees are burned, reducing the total supply of tokens.

Participation Method

1. As a resource provider:

   • Set up GPU, CPU, or storage servers on the Akash network
   • List resources, set prices, and start earning AKT tokens

2. As a service user:

   • Rent computing resources through the Web interface or command line interface of the Akash network
   • Deploy AI training workloads, web services, and decentralized applications

3. As a developer:

   • Access the API and SDK to integrate Akash network services into applications.
   • Use GPU clusters for deep learning training or inference tasks

4. Participate in Network Governance:

   • Stake AKT tokens to vote on network upgrades and resource pricing policies

Future Outlook

The above are just a few DePIN projects that have proven their business model is viable and have sustainable income. Over time, the acceptance of the DePIN field will undoubtedly further increase, and we have reason to believe that more sustainable, scalable, and profitable projects will emerge.

It is worth noting that the above cases mainly focus on consumer-facing projects. However, another exciting area is infrastructure services. With the booming development of DePIN projects, underlying blockchains, oracle services, smart contract platforms, middleware, token issuance services, and other infrastructure providers will also benefit. Some noteworthy projects include underlying public chains, decentralized storage solutions, and smart contract development platforms.

These infrastructure projects provide the necessary technical support for the DePIN ecosystem, driving the entire industry forward. With the emergence of more innovative applications, we can expect to see further integration of Blockchain technology with real-world infrastructure, bringing revolutionary changes to various industries.