In a changing world of Web3, one of its fastest-growing areas is DePIN crypto or Decentralized Physical Infrastructure Networks. It vows to transform the way we construct and utilize the real-world infrastructure, including cloud storage and wireless networks, by decentralizing it by using the blockchain technology and crypto-rewards.
DePIN is not a mere idea any longer, in 2025 it will be a movement to follow, with developers, investors, or even telecom users attracted to the idea. This is an in-depth look into what DePIN is, how it works, and why it may be the future infrastructure to the decentralized web.
What Is DePIN in Crypto?
DePIN stands for Decentralized Physical Infrastructure Networks. Unlike traditional infrastructure, which is owned and controlled by centralized entities like Amazon Web Services (AWS), telecom companies, or large data centers, DePIN networks are built and maintained by users themselves.
Participants contribute physical resources like:
- Compute power
- Storage
- Connection (e.g. 5G)
- Data-gatherers/data-sensing devices
Tokens are then given out to them. These highways are set up on a peer-to-peer base as synchronized by blockchain protocols.
Why Web3 Needs Decentralized Infrastructure
Centralized infrastructure is fast, scalable, and easy to use—but it comes with drawbacks:
- Single points of failure
- High costs
- Censorship risk
- Opaque operations
Web3 is focused on making online services decentralized. Nonetheless, majority of dApps and decentralized platforms continue to utilise Web2 infrastructure (such as AWS or Cloudflare) This is where DePIN steps in—providing the missing physical layer of Web3 infrastructure.
The dePIN protocol enables individuals to take control of the networks they employ, to make the internet more censorship-proof, robust and community-driven.
Key Components of DePIN
DePIN spans across several physical infrastructure categories. Here are the major ones driving the sector:
Compute Power
Projects like Akash Network and io.net provide decentralized alternatives to cloud computing and GPU services. Instead of renting computers from Amazon or Microsoft, users tap into a network of contributors offering spare server or GPU power.
- Akash (AKT) enables permissionless cloud computing at lower cost.
- io.net powers decentralized AI/ML workloads with access to 300,000+ GPUs.
Decentralized Storage
- Decentralized systems such as Filecoin and Arweave allow decentralizing the storage of data via a distributed network and compensating the storage providers in the form of crypto tokens.
- Filecoin (FIL) has risen to be the mainstay of decentralized data archiving.
- Arweave (AR) offers “permanent storage” with a one-time fee model.
Connectivity
DePIN projects are creating decentralized networks for wireless, IoT, and mobile data.
- Helium (HNT): Pioneered decentralized LoRaWAN and now expanding into 5G hotspots.
- Pollen Mobile and XNET: Building decentralized mobile networks across U.S. cities.
Sensors & Physical Data
Some DePINs gather real-world data like location, weather, or vehicle telemetry.
- WeatherXM: A weather station network where contributors earn tokens for uploading local climate data.
- DIMO: Collects car data (like mileage or battery life) for analytics, apps, and marketplaces.
Use Cases: Real-World Value from DePIN
DePIN isn’t just theoretical. It’s already proving useful in a range of industries:
- AI & ML compute power for startups that can’t afford cloud GPUs (via io.net, Akash)
- Wireless mesh networks built by users (via Helium, Pollen)
- Permanent website and file hosting free from censorship (via Arweave, Filecoin)
- Crowdsourced real-time weather and mapping data (via WeatherXM, Hivemapper)
- Connected car and mobility applications (via DIMO)
With AI increasingly becoming computer hungry and smart cities requiring increased amounts of real-time data, it may be possible that DePIN can be exploited to serve the backend of anything – from edge AI models to autonomous cars.
Challenges and Limitations
Despite the hype, DePIN still faces several challenges:
- Hardware costs: Participants must often buy routers, GPUs, or weather stations.
- User onboarding: Non-technical users may struggle to join or maintain nodes.
- Performance: Performance is now behind centralised services (e.g. latency).
- Regulatory risks: The services in telecom, AI and storage are strictly regulated in certain countries.
That said, many projects are addressing these issues with better incentives, UX, and partnerships.
The Future of DePIN in 2025 and Beyond
DePIN has seen an explosion of interest in early 2025, with over $1 billion in combined market cap across top DePIN tokens, including:
- Filecoin (FIL) – $4.6B market cap
- Helium (HNT) – $1.2B
- Akash Network (AKT) – $700M+
- io.net recently launched, gaining traction in AI compute
Major crypto funds (like Multicoin Capital and a16z) are investing heavily in DePIN infrastructure. Analyst reports suggest DePIN could become one of the defining narratives of the next bull cycle, especially as AI, decentralized cloud, and privacy-focused tech gain adoption.
Projects like io.net, peaq, and DIMO are also positioning themselves as key enablers of the decentralized AI economy, making DePIN critical for scalable, ethical AI.
Conclusion
- DePIN is not a buzzword, but it is rapidly not only turning into a pillar of Web3 infrastructure but an indispensable feature of it as well. It balances incentives toward a decentralized internet by rewarding users who provide computing resources, bandwidth and data in the real world.
- You can be a developer, investor, or this is just your curiosity, yet tracking of DePIN projects may help you get a better idea of the future of the decentralized web and even make money out of it.