What is DePIN? A Beginner’s Guide to Decentralized Physical Networks
The post What is DePIN? A Beginner’s Guide to Decentralized Physical Networks appeared on BitcoinEthereumNews.com.
DePin, short for Decentralized Physical Infrastructure Network, represents the natural evolution of blockchain technology beyond Web3 and into the physical world. As blockchain and decentralized solutions gain traction, DePin has emerged as a topic of growing interest. While still in its early stages, this innovative concept has the potential to disrupt existing technologies and create more efficient solutions across various sectors. But, what exactly is DePin? How does it work? And why is everyone suddenly talking about it? What is DePin? DePin is just an umbrella term for all networks that use blockchain to decentralize control or ownership over physical infrastructure. So, DePin includes a network of crowd-sourced providers. Here, these providers offer real-world services to users and use blockchain to keep a record of these services. In turn, they receive rewards (for the services) via cryptocurrency that might run on the same or a completely different blockchain network. Imagine a world where, instead of relying on large corporations, we depend on OURSELVES to run systems. By sharing resources like computers, internet access, or even solar panels, we collectively build and sustain infrastructure. Let’s simplify it further. Say you and your friends need a wifi network. However, instead of relying on one big company to provide it, you all chip in by setting up your own small Wi-Fi devices. These devices can now create a big network together and everyone has access. What’s cool is that no single person owns the network. It’s run by everyone who contributes to it. In addition, say, when you build or maintain the network by setting up the device, you can earn rewards too. This is an idea of sharing both responsibilities and rewards. Right? DePin is based on this idea. Think of teamwork but on a broader, more global scale. DePin leverages blockchain…
Filed under: News - @ December 14, 2024 2:20 pm