Written in February 2025 and kept here as published. The ground has moved since — read it as a snapshot of the thinking at the time, not as current advice.
Many of the most exciting aspects of Web3 are geared toward businesses and enterprises, promising a future where groundbreaking innovations benefit many or even all of us—eventually. These transformations, however, require time, infrastructure, and significant development before they can deliver on their full potential. Such is the nature of massive, paradigm-shifting technologies.
But there’s one notable exception—an innovation that doesn’t require waiting for some distant breakthrough or depending on a single company, CEO, or billionaire. It’s already here, quietly reshaping how things work, and most people haven’t noticed it yet. This revolution is called DePIN, and in a decade, we may recognize it as one of the most significant technological shifts of our time.
If it’s not already clear, yes: we’re excited about DePIN. And by the end of this article, we think you will be too.
But what exactly is DePIN? How does it work, who stands to benefit (spoiler alert: it could be you), and what will it change? Let’s dive in.
Understanding DePIN: Decentralized Physical Infrastructure Networks
DePIN takes a decentralized approach to building and maintaining the physical infrastructure that powers our digital world. Instead of relying on large corporations to own and control essential hardware—like the data centers that store your Google Drive files, the cell towers that keep your phone connected, or the GPS networks that power apps like Uber—DePIN allows individuals and communities to contribute resources, such as computing power, storage, or wireless connectivity, in exchange for incentives. This shifts control away from centralized entities like Amazon Web Services (AWS) or telecom giants, making networks more resilient, cost-effective, and accessible.
The Current Model: Centralized Physical Infrastructure
Centralized physical infrastructure networks are how most services we rely on today are built and operated. Be it the Spotify we listen to at the gym, the Zoom calls we hold meetings in – nearly everything we do online, or that requires internet connection and hosting. To demonstrate how centralized systems compare to decentralizied systems, let’s look at two mapping services - Google Maps and HiveMapper.
Google Maps, in particular, operates on a fully centralized model for data collection and storage. The company deploys a fleet of vehicles equipped with cameras and GPS sensors to map roads and capture street-level imagery. But collecting the data is just the first step. Once gathered, this massive amount of information is sent to Google's data centers, where it's processed, analyzed, and stored. These data centers are vast warehouses filled with racks of high-powered servers, humming with activity as they handle everything from real-time traffic updates to route optimization. They require enormous amounts of electricity, cooling systems to prevent overheating, and dedicated security to protect against cyber threats.
The benefits of this centralized approach are clear. Google Maps is fast, consistent, and deeply integrated with other services like Google Search and Google Ads. With all the data housed in one place, Google can ensure accuracy, quick processing, and seamless user experiences. Furthermore, a centralized approach was the only feasible option, given previous technological limitations. Hardware was exceedingly expensive, and software had not yet advanced to include decentralized identity systems and smart contracts that could support more distributed models.
However, there are downsides to this centralized approach for companies like Google, the businesses that rely on their services, and the average internet user. Businesses that use Google Maps APIs often face steep fees due to Google’s enormous market share and the leverage this offers them in pricing. Meanwhile, users who contribute location data—whether by using Google Maps on their phones or sharing real-time traffic conditions—receive no compensation or control over how their data is used. Additionally, since everything is controlled by Google, any server outage, security breach, or policy change can have a widespread impact, affecting millions of users and businesses reliant on the service.
The DePIN Alternative
DePIN, as the name implies, is a decentralized physical infrastructure network. Unlike centralized services such as AWS or Google, which rely on enormous facilities filled with rows of servers and processors, a DePIN network (like Filecoin or Hivemapper) leverage blockchain technology to distribute infrastructure responsibilities among participants, reducing reliance on singular points of failure and democratizing data ownership. Instead of corporations managing data storage or processing power, individuals and businesses contribute and earn rewards while maintaining greater transparency and security.
Having explored how a centralized infrastructure network captures, maintains, and presents data for a mapping service like Google Maps, let’s turn our attention to a DePIN alternative mapping service to see how they compare: Hivemapper. Instead of relying on a central entity to collect data, Hivemapper incentivizes individuals to contribute by using affordable dashcams to gather mapping data as they drive. This data is uploaded to a decentralized network where it’s processed and stored across blockchain nodes (And by the way, that blockchain point is very important - we'll get to that in a moment.).
Contributors are rewarded with HONEY tokens, ensuring that the financial benefits of the system are shared with the community. For businesses, Hivemapper provides a lower-cost alternative to centralized services like Google Maps. Google Maps' scalable pricing and broad feature set may be suitable for applications with extensive, varied mapping needs. In contrast, if your application benefits from the freshest street-level imagery and specific map features, Hivemapper's targeted data offerings could provide a cost-effective solution Additionally, its decentralized infrastructure is more resilient to outages and monopolistic control.
However, DePIN alternatives are not without their limitations. Hivemapper’s coverage depends on active contributors, and data quality can vary. Participation also currently requires specialized hardware, which may deter some users.
A Comparison
Why It’s Important to Understand Both Models
The centralized internet is by no means antiquated or paltry. It is robust, diverse, and the source of nearly half the world's income. We acknowledge that centralized infrastructure providers face immense costs. For example, the C-Band spectrum auction in 2021 cost AT&T, Verizon, and T-Mobile a combined $78 billion to deploy 5G services. These companies must recoup such investments, and their pricing reflects that reality.
Centralized systems are well-suited for industries requiring high reliability, regulatory compliance, and around-the-clock support—such as healthcare and finance. They offer speed, consistency, and convenience.
However, these advantages come with trade-offs: high costs, potential for monopolistic behavior, and a lack of user control. In contrast, DePIN offers a different approach, that democratizes infrastructure ownership and empowers individuals.
DePIN networks operate on decentralized principles, leveraging blockchain technology* to ensure trust, transparency, and fairness. Unlike centralized systems, where a single authority manages everything, DePIN uses blockchain’s tamper-proof ledger to record transactions. This enables:
Transparent operations: All contributions and payments are visible on the blockchain.
Automated incentives: Smart contracts ensure contributors are fairly compensated.
Shared ownership: Participants can co-own and govern the network.
Borderless payments: Cryptocurrency facilitates seamless global transactions.
(*Without blockchain, DePIN would struggle to coordinate decentralized participants, maintain transparency, and ensure security. Blockchain isn’t just an add-on—it’s the backbone that makes DePIN possible. Future articles will explore this aspect of DePIN more thoroughly.)
Conclusion: The Road Ahead
Both centralized infrastructure and DePIN have merits. Centralized systems excel in speed, reliability, and ease of use, not to mention a 30-year head start. This doesn’t just mean there is momentum there, but also an installed base. DePIN, on the other hand, offers cost efficiency, resilience, and empowerment through shared ownership. The future may not be about choosing one over the other but finding ways to blend the strengths of both.
Imagine a world where centralized companies integrate DePIN networks for specific operations, reducing costs and enhancing resilience while maintaining core services. This hybrid approach could bring the best of both worlds, paving the way for a more inclusive, decentralized future. But for how, we hope this introduction has brought some clarity and excitement to what will be an indispensable and transformative aspect of the internet as we know it. In a DePIN web3, customers and companies will have new approaches, options, and efficiencies that can turn historic weaknesses and liabilities into strengths and opportunities. Wondering what DePIN can mean for you as a customer, a business, or a participant? (Yes – you can participate in the DePIN revolution!) Come check out part two of our DePIN breakdown here.