DePIN On Ethereum: Redefining Coordination Systems

Decentralized physical infrastructure (DePIN) is reshaping how we think about infrastructure, ownership, and coordination in the 21st century. DePIN projects bring a new approach to resource coordination by decentralizing key elements of infrastructure across three domains:

• Human resources: Leveraging the gig economy to decentralize labor

• Machine resources: Facilitating the use of decentralized compute power and bandwidth

• Physical infrastructure: Transforming traditional infrastructure like telecom and transportation through decentralized models

  
  

While estimates on the total number (and combined market cap) of DePIN projects vary, the data suggests over 1,000 projects exist within the DePIN space—with the top 100 projects boasting a combined market capitalization of $40B. This number is predicted to grow even further as we enter an accelerationist era where demand for infrastructure (e.g., GPUs for training artificial intelligence (AI) models) will grow massively.

Ethereum-based DePIN projects account for over 110 active projects, giving the Ethereum ecosystem a big slice of this growing market. These projects not only highlight Ethereum’s role as the foundation of decentralized innovation but also showcase the unique strengths of its ecosystem in supporting scalable, trustless, and secure infrastructure solutions.

This article focuses specifically on DePIN projects within the Ethereum L1 and L2 ecosystem, exploring various protocols solving real-world problems in areas like telecommunications, compute, energy, and more. We will also explore the major components of the DePIN thesis and examine the factors that have contributed to the growth of Ethereum’s DePIN industry.

This article explores some of the most pressing questions shaping the future of decentralized infrastructure:

• Is the democratization and decentralization of physical resources truly necessary? With technological giants driving incredible advancements in recent decades, why disrupt the status quo? What is fundamentally different about this moment in time that demands a new approach?

• Examining demand: Do people even need decentralized infrastructure? Is there tangible demand for DePIN, or is it a solution in search of a problem? We’ll begin by analyzing the user side of the equation to determine whether the case for DePIN makes sense—and if so, why the timing is critical now. What factors have aligned to make this innovation possible, and who is already leading the charge?

• Can the supply of critical infrastructure keep pace with surging demand? As industries race to modernize and scale, how do we ensure that quality and affordability aren’t sacrificed in the process?

• Balancing scalability with sustainability: How can we address the environmental impacts of rapidly scaling infrastructure without hindering innovation or progress?

  
  

Rather than debating strict definitions of DePIN, this article adopts a functional lens, exploring projects based on their focus areas, such as telecommunications, energy, compute, global positioning, and more. We’ll start by tracing the roots of decentralization, linking it to the gig economy's evolution, and examining how foundational web2 & web3 advancements laid the groundwork for DePIN.

The underpinnings of decentralization

At its core, crypto represents freedom, control, and transparency—values that align with decentralization (while preserving privacy where necessary). This ethos is part of a broader shift we’re seeing with DeFi (decentralized finance), which addresses the misalignment of incentives in traditional systems. Centralized control has historically concentrated power, wealth, and data in the hands of a few entities, stifling individual freedom and innovation.

A look back at the tech industry's evolution illustrates this centralization:

The advent of Web 2.0 in the early 2000s transformed the internet from static pages to dynamic, user-generated platforms and fostered unprecedented connectivity and information exchange. However, this evolution also led to significant economic centralization, with a handful of tech giants amassing substantial wealth and influence.

For instance, in 2005, the list of the world's most valuable listed companies included a mix of oil companies and multinational conglomerates. By 2021, American tech giants had taken over the rankings, with companies like Apple and Microsoft leading the charge.

The "Magnificent Seven"—Apple, Microsoft, Amazon, Google (Alphabet), Facebook (Meta), Nvidia, and Tesla—epitomize this concentration. In 2024, these companies have a combined market capitalization of $13 trillion— surpassing the total value of all public companies in most G20 countries (excluding China, Japan, and the U.S).

The economic impact extends beyond revenues to employment practices. Traditional brick-and-mortar retailers employ approximately 47 people per $10 million in sales, whereas Amazon employs only 14 for the same revenue. This disparity indicates a trend where tech companies generate vast revenues with relatively smaller workforces, contributing to broader economic inequalities.

The dominance of these tech giants is not confined to the U.S. In 2020, the five most valuable corporations publicly listed globally were primarily digital platform owners and operators, including Apple, Microsoft, Amazon, Facebook, and Alphabet. This concentration reflects a global trend towards economic centralization in the tech sector.

While technological advancements have made life more convenient and accessible, they’ve also introduced constraints, such as the monopolization of resources and control over data. DePIN represents an opportunity to break free from these limitations by decentralizing critical infrastructure and enabling broader participation in wealth creation and decision-making.

DePIN as a solution to centralization of tech infrastructure

In 2022, Josh Stark from the Ethereum Foundation (EF) published a thought-provoking piece titled Atoms, Institutions, Blockchains which we’ve come to realize resonates deeply with the core ideas driving DePIN. He goes to talk about how humanity’s progression has been marked by our ability to create and sustain systems that provide hardness—predictability and reliability in our interactions and infrastructure.

From physical resources (atoms) to institutional constructs, each layer has allowed for increasingly complex societal coordination. However, as global digital civilization accelerates, these traditional systems are strained, exposing vulnerabilities in scale, efficiency, and inclusivity.

Atoms: Harnessing physical resources

Historically, humanity relied on physical resources—like gold, land, and fossil fuels—to drive societal and economic growth. These resources provided "hardness": predictability and reliability in interactions and infrastructure. However, physical resources are inherently limited by geography and nature, creating disparities in access and opportunities.

DePIN offers an alternative by decentralizing access to physical infrastructure. Instead of relying solely on geographically constrained resources, DePIN enables individuals and communities to contribute and utilize infrastructure like bandwidth, compute power, and renewable energy. This approach ensures scalability without being bound by the limitations of traditional resource scarcity.

Institutions: The promise and pitfalls

As societies evolved, institutions—banks, governments, corporations—emerged to manage and coordinate resources and relationships. Institutions introduced a degree of flexibility but at significant cost: complexity, centralization, and exclusion. They are geographically bounded and prone to inefficiencies, often limiting participation to privileged groups.

DePIN, powered by blockchains like Ethereum, bypasses these institutional inefficiencies. It introduces "blockchain hardness"—a form of programmable, trustless coordination that ensures global, transparent, and decentralized access to infrastructure. For example, instead of relying on centralized platforms like Uber or Doordash, DePIN enables community-owned and operated alternatives like DIMO (which we will cover in the later sections).

Blockchains: The foundation of programmable hardness

Blockchains represent the next evolutionary leap by offering programmable hardness—a system that enforces rules globally, transparently, and autonomously. Platforms like Ethereum provide the infrastructure for building trustless networks where decentralized participation replaces traditional intermediaries.

DePIN leverages this blockchain-enabled coordination to manage physical infrastructure. By combining the reliability of "atoms" with the flexibility of "institutions" and the scalability of "blockchains," DePIN creates systems that are:

• Trustless: No single entity controls the infrastructure

• Scalable: Participants can join from anywhere in the world

• Inclusive: Access is open to anyone with the required resources or capabilities]

  
  

In essence, DePIN is the practical realization of blockchain hardness applied to real-world infrastructure. It addresses the limitations of physical resources and institutional inefficiencies while unlocking new economic and societal possibilities.

The rise of the gig economy:  A foundation for DePIN’s growth

The gig economy has been instrumental in decentralizing and democratizing labor, setting the stage for DePIN’s emergence. Over the past decades, the gig economy has evolved into a global force, exemplified by platforms like Uber, DoorDash, and Airbnb, which enable individuals to monetize personal assets and labor in decentralized ways.

The gig economy in numbers

• The share of the U.S. workforce participating in the gig economy rose from 10.1% in 2005 to 15.8% in 2015, with gross receipts from self-employed workers increasing by 21% during this period.
• Today, 36% of the American workforce—59 million people—engage in gig work, with projections suggesting this will rise to 50% by 2025 (Source: Upwork).
• Globally, the gig economy accounts for 12% of the labor market, with a 15% compound annual growth rate (CAGR) projected through 2026 (Source: World Bank, DDIY).

The gig economy is a global phenomenon

While the U.S. leads the global gig economy, emerging markets like India, Indonesia, and Brazil are rapidly growing. Key insights include:

• 88% of the global gig economy gross volume comes from ride-sharing platforms like Uber and asset-sharing platforms like Airbnb (Source: Mastercard).
• Skilled work, including computer programming, IT, and marketing, makes up 50% of global freelance jobs (Source: Upwork).
• Markets like England and Wales see 15% of workers completing a gig job weekly, showcasing the widespread adoption of flexible labor models (Source: TUC).

Key trends shaping the gig economy

• By Choice: 70% of independent contractors work by choice, highlighting the appeal of flexibility and autonomy (Source: ADP).

• Diversified Income Streams: 56% of gig workers take gig jobs to supplement their main source of income (Source: Pew Research Center).

• Urban Concentration: 43% of freelancers live in urban areas, reflecting the higher availability of gig opportunities in cities (Source: Upwork).

• Emerging Skills: Freelance skills like sales (54% YoY growth), data entry (47%), and 3D animation (44%) are driving the gig economy forward (Source: Upwork).

  
  

DePIN and the future of the gig economy

Thought leaders like Naval Ravikant (an early investor in Uber, X, and Notion) predict that the gig economy will continue evolving toward a self-employment-driven model. Ravikant envisions a future where work resembles the independent yet collaborative structures of hunter-gatherer societies, free from rigid hierarchies and schedules. This shift, he argues, empowers individuals with greater freedom and self-sovereignty.

“True freedom comes from not being bound by rigid schedules and bosses.” —  Naval Ravikant.

But gig economy platforms like Uber, DoorDash and Airbnb weren’t formed in a day or enabled by just one or two breakthroughs. They are the result of years of advancements in diverse technological and infrastructural developments:

• Smartphones & connectivity: Widespread smartphone adoption, 4G/5G internet, and app ecosystems enable real-time, on-the-go interactions
• GPS & mapping: Geolocation and mapping APIs (e.g., Google Maps) allow accurate navigation, geofencing, and optimized routing
• Cloud computing: Scalable cloud infrastructure processes millions of interactions, stores data, and supports real-time operations
• AI & algorithms: Matching, dynamic pricing, and route optimization powered by AI enhance efficiency and cost-effectiveness
• Payment systems: Secure gateways (e.g., Stripe) and digital wallets facilitate seamless, cashless transactions
• Data analytics: Predictive insights improve demand forecasting, resource allocation, and customer satisfaction
• Communication: Push notifications, SMS, and in-app messaging ensure smooth coordination
• Onboarding & compliance: Automated identity checks, local legal navigation, and safety protocols build trust

These advancements, combined with strong logistics networks and flexible labor pools, make these platforms efficient and scalable. Similarly, we’re witnessing rapid advancements with blockchains like Ethereum, which are scaling to provide robust infrastructure for such apps. Innovations in both software and hardware, coupled with network effects, have laid the foundation for DePIN to thrive.

In the later sections, we’ll explore various DePIN projects revolutionizing (or at least trying to) different sectors and areas, starting with DIMO.

DIMO: Redefining car ownership with decentralized connectivity

For most people, their car is the second-largest purchase after their home, costing up to $12,000 annually. But, despite technological advancements, most vehicles remain disconnected—a drawback that limits utility for owners. DIMO is working towards revolutionizing vehicle ownership and increasing utility for owners by making cars smart, programmable, and open.

Designed to empower both drivers and developers, DIMO offers unparalleled access to vehicle data (e.g., speed, location, fuel levels), connectivity (e.g., lock/unlock, ignition), and commerce (e.g., payments, registrations). DIMO leverages the Ethereum blockchain to establish vehicle identities, permissions, and rewards while offering unmatched openness, privacy, security, and performance guarantees.

How DIMO works

• Data providers: Users can integrate hardware like the R1 LTE device or connect OEM platforms to supply vehicle data to DIMO’s network.

• Data consumers: Developers can build apps using DIMO’s data for services like navigation optimization, insurance pricing, or environmental tracking.

• Developer console: Upgraded to version 1.0, the developer console offers a seamless experience for building applications, with features like global accounts for effortless blockchain integration.

  
  

DIMO vision and achievements

• Global reach: Over 115,000 cars connected across the US, Canada, and Europe, with instances of cars being within 150 meters of each other—laying the groundwork for Vehicle-to-Vehicle (V2V) communication.
• Data economy: Unlocks the value of vehicle data, predicted to be worth $800 billion by 2030—allowing owners to earn while contributing to urban planning, insurance optimization, and better traffic management.
• Vehicle-to-vehicle (V2V) communication: Future plans include sharing road condition data (e.g., lane closures or hazards) in real-time, aiding autonomous driving and safety through better coordination between vehicles.

Vehicle-to-Vehicle (V2V) communication in DIMO

• Enhanced transportation: V2V communication can share real-time road conditions (e.g., lane closures) and improve autonomous driving by predicting vehicle intentions.

• Proof of location and movement: Vehicles near each other can verify data, building trust scores to combat GPS spoofing and enhance security.

• Future-ready connectivity: While DIMO devices don’t yet enable V2V, the vision includes vehicle-agnostic communication, essential for a mixed global fleet.

  
  

Imagine a car that autonomously parks, pays for its spot, and seamlessly integrates with AI-based mechanics or insurance tailored by your driving habits. DIMO enables such futuristic applications, fostering innovation without the limitations of traditional walled-garden platforms. Developers can build cutting-edge mobility products, ensuring transparency, security, and scalability while aligning stakeholders through its $DIMO token.

Coordinating physical infrastructure: The case for DePIN in telecom

One of the most promising applications of DePIN lies in the telecommunications industry. Connectivity—as exemplified by the Internet—is one of the most transformative inventions that have fundamentally shaped and transformed modern human societies. For context, there are 5.35 billion internet users today and more users are coming online (internet users grew by 1.8% in the last year alone as some 97 million new users came online for the first time).

Despite this progress, over 33% of the world’s population remains disconnected from the internet, a fundamental resource in today’s world. Decentralized physical infrastructure networks (DePINs) offer a promising solution to bridge this gap by enabling community-owned infrastructure to expand connectivity more rapidly than traditional ISPs (Internet Service Providers).

But with the massive amount of data being generated every day and the high costs of setting up the traditional infrastructure, the supply side of the traditional telecoms industry may fail to keep up. We analyze this trend in more detail in the next section.

The growing challenges of traditional telecom

Modern telecom has come a long way since the 1990s when wireless technology replaced wired systems. Today, it spans everything from satellites to Wi-Fi and generates over $1.5 trillion annually across sectors like mobile, broadband, and fixed wireless.

However, this centralized model faces growing challenges. Telecom giants like AT&T, China Mobile, and Verizon rely on massive investments in infrastructure and labor, making it increasingly difficult to scale efficiently. Citrini Research highlights the challenges created by this dependency in a recent article:

• Over-optimistic projections: Pandemic-era forecasts have left companies burdened with excess supply, such as underutilized fiber-optic cables.

• Supply chain struggles: Rapidly shifting demand, such as the transition from personal connectivity to shared campus and metro networks, creates bottlenecks traditional telecom is ill-equipped to handle.

  
  

Further compounding the problem is a boom in the demand for data around the world. For example, the average American generates 53 terabytes of digital information annually— a sharp increase from just 6-8 terabytes during the pre-COVID era.

This explosion in data generation is fueled by advancements like IoT (Internet of Things) devices, AI-powered tools, and increasingly interconnected systems, among others. Traditional telecom’s ability to expand infrastructure is struggling to keep up with this unprecedented demand, leaving gaps that decentralized solutions like DePIN can fill.

How DePIN meets the telecom industry’s challenges

DePIN is pioneering decentralized wireless networks, enabling individuals to deploy nodes and hotspots while earning rewards for providing connectivity. These projects tackle the telecom industry’s challenges through:

• Reduced costs: Decentralized deployment bypasses the need for centralized infrastructure investments
• Incentive alignment: Participants are rewarded directly, fostering network growth and ensuring active participation
• Scalability: Networks can expand rapidly in response to growing demand, avoiding the bottlenecks seen in traditional telecom models

Some argue that decentralized solutions are already meeting demand in areas like shared campus and metro networks where traditional telecoms struggle to deploy resources quickly. By leveraging blockchain and crypto incentives, DePIN projects unlock untapped potential in infrastructure management.

Decentralized telecom solutions not only reduce costs and improve scalability but also empower individuals to actively contribute to and benefit from the connectivity revolution. DePIN is poised to fill the gaps left by traditional telecom, offering a more efficient and inclusive approach to infrastructure management.

Wicrypt: Improving global internet access

Wicrypt is a DePIN network transforming internet accessibility by decentralizing last-mile connectivity and allowing users to become supply-side participants. Acting as a bridge between the $1.1 trillion ISP market and a decentralized world, Wicrypt reduces mobile internet costs by over 60% in Africa through its pilot program.

Wicrypt's technical architecture

According to the documentation, Wicrypt operates atop a dual-layer architecture designed for simplicity and decentralization.

• Layer 1: Decentralized hotspot hubs (micro nodes) powered by custom firmware. These hubs create WiFi zones that are not controlled by any central authority. Anyone can become a host by acquiring a Wicrypt-supported router, installing the firmware, and enabling others within range to connect.

• Layer 2: Connected clients (mobile devices, laptops, IoT devices, etc.) access the internet through these hubs, enabling seamless connectivity.

  
  

In the future, Wicrypt plans to integrate all nodes with a decentralized storage network powered by Filecoin, enabling them to function as cloud storage devices. The network’s native token, $WNT, powers operations by incentivizing hosts for creating WiFi zones in hard-to-reach areas. It also enables user bonuses, such as cashback and airdrops, further fueling adoption in underserved regions.

Wicrypt's products and capabilities

Wicrypt offers three key products, tailored to meet various user demands:

1. Lynx: A compact, battery-powered device supporting up to 50 concurrent users with coverage of 100m. Features include GPS, a 5000mAh battery, and WNT mining capabilities. Ideal for portable, small-scale internet access.

2. Spider: A high-capacity device supporting up to 70 concurrent users with a range of 200m. It features 4 LAN ports, 9dBi omnidirectional antennas, and WNT mining capabilities for users needing broader connectivity.

3. Gigabit: A powerful, enterprise-grade device supporting 500 concurrent users with a range of 500m. Designed for ultra-fast internet speeds of 1Gbps, it is equipped with WiFi 6, 5 LAN ports, and WNT mining capabilities.

   
   

These products cater to diverse use cases, from individual portable hubs to high-capacity routers for businesses. Wicrypt has connected 55,000+ users, shared 3.84PB of data, and operates in 37 countries and 119 cities, showcasing its potential to decentralize internet access and empower communities globally. Users can earn $WNT tokens by sharing data through Wicrypt hotspot hubs, which are available for purchase via the website, mobile app, or Flutterwave store.

Wicrypt recently integrated with Arbitrum One, migrating its $WNT token from Polygon to Arbitrum to enhance liquidity and transaction efficiency. With MEXC exchange handling a seamless token swap, Arbitrum One is now the default chain for Wicrypt transactions. This innovative approach is dismantling ISP monopolies while empowering communities with affordable internet access.

The GPU gold rush and challenges of AI compute

At the core of the AI revolution lies the GPU (Graphics Processing Unit), originally designed for gaming but now indispensable for training and running AI models. The skyrocketing demand for GPUs has made them a scarce commodity, with companies facing months-long waiting lists to acquire even a few units. For context, Nvidia—the undisputed leader in GPUs—warned of a potential GPU shortage due to production shifts and soaring demand in a recent fiscal report.

Training large AI models like Meta’s Llama 3.1 405B can cost over $600M, with compute needs doubling every 3-4 months. AI clusters now scale to 100,000 GPUs, with 300,000+ GPU clusters planned for 2025. But supply is limited for various reasons: (a) Chip shortages and manufacturing bottlenecks (b) Cloud resource and energy constraints. This creates several problems:

• Soaring costs: High-performance GPU clusters exceed $500M to build

• Infrastructure bottlenecks: Cooling, power, and space limits hinder scaling.

• Centralized pricing pressures: Unpredictable pricing and availability dominate

  
  

These constraints create opportunities for DePIN projects to decentralize compute, utilizing blockchain incentives to unlock untapped GPU power and offer affordable, scalable solutions. The projects discussed in subsequent sections (Aethir, Spheron, and Golem) are some of the Ethereum DePIN projects working to decentralize AI compute and avoid the centralization bottlenecks that plagues Big Tech.

Aethir

Aethir is redefining cloud computing by creating a distributed network of enterprise-grade GPUs to power AI, gaming, and virtualized compute sectors. Its decentralized approach aggregates underutilized GPUs into a global network, unlocking their potential for both providers and users. Providers earn rewards by contributing idle GPU resources, while users gain access to affordable, scalable on-demand compute for AI training, real-time rendering, and more.

Aethir key accomplishments

• $36 million in annual recurring revenue from enterprise-grade GPU services

• A decentralized cloud infrastructure with over 43,000 high-end GPUs and 3,000 NVIDIA H100s, supporting compute-intensive industries like AI and gaming.

• A global network of 91,000 Checker Nodes, ensuring quality, stability, and decentralization of its services

• Surpassed its Checker Node sale target by distributing 70,000 licenses, representing a highly decentralized network.

  
  

As per Dune, over 74,673 nodes were sold, including 45,129 public sales and 29,544 whitelist sales, raising a total of 41,903 ETH—equivalent to approximately $150 million at the time. Central to Aethir’s infrastructure are Checker Nodes, which ensure the integrity and performance of cloud containers by verifying their specifications.

While we won’t comment on the node sales or make a case for them—that is beyond the scope of this article—, these numbers highlight the community’s trust and enthusiasm for decentralized compute solutions like Aethir. You can see the Dune stats below:

Aethir’s product suite

1. Aethir Earth:

• Designed for AI enterprises, offering bare-metal GPU infrastructure with NVIDIA HGX and DGX systems
• Delivers cloud solutions at costs lower than centralized providers, supported by partnerships with NVIDIA, HPE, and Foxconn

3. Aethir Gaming Cloud:

• Democratizes high-end gaming for 2.8 billion gamers worldwide by enabling seamless gameplay across devices
• Supports cloud-based game porting, reducing costs and accelerating time-to-market

5. Aethir Edge:

• Leverages idle GPU power for decentralized computing, reducing latency and offering passive income opportunities.

• Features Qualcomm® Snapdragon™ 865 chips, ideal for AI, gaming, and machine learning workloads

  
  

Aethir DePIN architecture

• Edge Layer: Connects decentralized GPU sources to the network.
• Network Layer: Checker Nodes coordinate and maintain quality across Aethir’s infrastructure.
• Application Layer: Connects enterprise clients to GPU resources for scalable solutions.

Golem

Golem is pioneering decentralized compute with its peer-to-peer marketplace for computational resources. Users ("providers") can rent out idle computing capacity to others ("requestors") for a fee, creating a global network that challenges traditional cloud infrastructure. By enabling decentralized microservices and asynchronous task execution, Golem reduces the cost of complex computations, making applications like CGI rendering, scientific research, and machine learning accessible to all.

How Golem works

• Requestors: Consumers of computational resources submit task templates, detailing requirements for hardware, urgency, and cost.
• Providers: Suppliers with Linux-based systems and modern hardware offer their resources, earning GLM tokens. GPU-specific tasks require higher specifications.
• Reputation system: A decentralized identity system ranks Providers based on performance, technical capacity, and historical reliability, ensuring trust and quality.

Golem key use cases and projects

1. AI and GPU workloads:

• Modelserve AI: Affordable AI model scaling for developers.
• Golem-Workers: API for high-level AI model fine-tuning.

3. Dapps and solutions:

• Ray on Golem: Python-based distributed computing for AI/ML applications

• Jupyter on Golem: Interactive programming environment for prototyping and collaborative software development

• Rendering: Partnered with Reality Metaverse to create personalized animations for NFT users

  
  

Is DePIN the way to net-zero carbon emissions?

Achieving net-zero carbon emissions demands a fundamental shift in how energy is produced, consumed, and incentivized. At the core of this transition is the carbon credit system, which assigns monetary value to reductions in CO2 emissions.

A single carbon credit represents one metric ton of CO2 avoided or removed from the atmosphere. It operates through two markets: Compliance Carbon Credit Markets (valued around $1 trillion in the beginning of 2024 and estimated to cross $2.68 trillion by 2028), where entities must offset excess emissions, and Voluntary Carbon Credit Markets ($30-$100 billion by 2030), where organizations and individuals buy credits to achieve carbon neutrality.

But the system faces significant challenges, including inconsistent standards and low market liquidity. There’s also the difficulty in verifying "high additionality" credits—projects that wouldn't exist without subsidies.

To illustrate: Electricity generation alone accounts for 30% of the U.S. CO2 emissions, projected to rise to 40-50% globally by 2030. Solar energy offers a solution, with costs dropping 95% in two decades (from $5 per watt in 2001 to $0.25 in 2021)—but current solar carbon credits often reward already-viable projects, limiting impact.

DePIN has the potential to revolutionize the carbon credit system by enabling transparent, scalable, and community-driven verification for high-additionality credits, maximizing cost-effectiveness and accelerating the transition to net-zero. How? Let’s understand this through the example of these two projects:

Glow: Solar energy with DePIN principles

Glow is an Ethereum-based solar project that decentralizes electric grids to achieve 100% renewable energy. Launched in December 2023, it has already raised $30 million in funding from Framework Ventures and Union Square Ventures. Glow's decentralized network spans solar farms in the U.S. and India, leveraging blockchain and crypto-economic incentives to drive high additionality solar carbon credits.

How Glow works

1. Recursive subsidy model: Glow supports solar farms on the brink of viability by covering initial construction costs through investments from financiers (crypto or private equity).

2. Revenue contribution: Solar farms contribute 100% of their electricity revenue to an incentive pool, ensuring continued funding for new solar farms.
3. Carbon credit system:
   • Solar farms pay an upfront USDC protocol fee based on projected revenue.
   • Glow Certification Agents (GCAs) audit and certify weekly carbon credit generation.
   • Certified carbon credits are tokenized as GCC tokens and sold via auction.
   • Buyers exchange GLW tokens for GCC, and Glow burns the acquired GLW tokens.

Glow key highlights

• Glow amplifies each construction dollar into $20 worth of new solar through its recursive subsidy.

• The GLW token, an ERC-20 token, serves as the native reward for protocol participants and the designated currency for acquiring GCC.

• Recently recognized as the top revenue-generating DePIN project, Glow generated over $17 million in the past 30 days

  
  

Glow seems to be accelerating the transition to renewable energy by creating a scalable, transparent, and effective platform for solar deployment.

Arkreen: Net zero decentralized energy data network

Arkreen is a DePIN (Decentralized Physical Infrastructure Network) working towards revolutionizing energy production and consumption by integrating small-scale renewable energy producers into a decentralized, efficient, and carbon-neutral grid. Its mission is to tackle climate challenges while meeting the growing energy demands of advanced technologies like AI.

What is the vision for Arkreen?

• Decentralized energy supply: Utilizes IoT-based Proof of Physical Work (PoPW) to digitize and validate green behaviors like rooftop solar power generation, energy-efficient appliances, and electric vehicle usage. These actions are rewarded with AKRE tokens, creating an incentive-driven system for renewable energy adoption.
• Demand-side impact: Establishes a tokenized marketplace for voluntary carbon offsets, allowing individuals and businesses to mitigate their carbon footprints. The GreenBTC.Club initiative (more on this later) exemplifies this, rewarding participants with utility tokens for adopting carbon-neutral practices.
• Personal carbon market expansion: Arkreen captures the long-tail potential of micro green assets, aggregating small-scale green behaviors into a significant collective market. These assets can be tokenized and traded, creating new economic opportunities.

Arkreen is working on integrating renewable energy into AI operations by providing a decentralized, scalable, and carbon-neutral power source. Its network aims to supports variable AI workloads, reduces the carbon footprint of AI systems, and enhances edge computing with low-latency, localized energy solutions.

Arkreen's GreenBTC Club initiative, launched in November 2023, is a blockchain-based platform for voluntary carbon offsetting in Bitcoin mining. By leveraging renewable energy certificates (RECs) and blockchain technology, the initiative provides a transparent and impactful way to green Bitcoin blocks and reduce mining-related carbon emissions.

• Renewable Energy Certificates (AREC):
• Each AREC represents 1 MWh of renewable energy generated.
• ARECs are minted as NFTs and can be converted into Arkreen Renewable-energy Tokens (ART) for flexible offsets.
• Greening Bitcoin Blocks:
• Electricity consumption for specific Bitcoin blocks is calculated using authoritative data (e.g., Cambridge Bitcoin Electricity Consumption Index).
• Participants can offset the carbon emissions of these blocks using ART or by paying a fee.

Arkreen key milestones

• 180,000 miners & blocks greened: Arkreen reached a dual milestone, celebrating 150,000 miners and 150,000 blocks greened
• 100GWh ART Offset: Achieved a record of 100GWh ART consumed for on-chain offsets, doubling from 40GWh in just two months

The Case for Decentralized RTC (Real-Time Communication)

Real-Time Communication (RTC) platforms are the backbone of modern digital interaction, powering applications like video calls, live streaming, and collaborative tools. However, traditional RTC platforms like Zoom or Google Meet often grapple with privacy concerns, high latency, scalability issues, and centralized control. These challenges create vulnerabilities such as surveillance risks, single points of failure, and limited accessibility.

Decentralized RTC (dRTC) offers a transformative solution by leveraging peer-to-peer networks, encryption protocols, and blockchain technology. This ensures end-to-end encryption for privacy, lower latency by optimizing data routing, and a robust infrastructure distributed across nodes worldwide. Unlike centralized platforms, dRTC eliminates intermediaries, reducing costs and enhancing security. Furthermore, decentralized architecture aligns incentives among users, node operators, and developers, fostering an inclusive, scalable communication network.

Huddle01: Decentralized Real-Time Communication

Huddle01 is improving real-time communication by decentralizing the WebRTC protocol. Its suite of audio and video products includes video meetings, multi-live streaming, and token-gated meetings. Built on a decentralized dRTC network, Huddle01 ensures ultra-low latency, encrypted communication, and privacy-preserving features—eliminating centralized control and leveraging Web3 primitives to offer scalable, privacy-centric RTC services to users and developers alike.

Media Nodes are the backbone of Huddle01’s decentralized Real-Time Communication (dRTC) network, routing and managing audio, video, and data streams. By acquiring Media Node NFTs, operators can contribute resources like CPU and bandwidth to the network, earning $HUDL tokens while powering borderless, censorship-resistant communication.

Huddle01 key achievements

• 1 million+ meeting minutes hosted and 150+ dApps using its infrastructure
• Multi-stream capabilities for platforms like YouTube, Twitch, and Twitter
• Utilizes Base WebRTC with DTLS/SRTP for secure peer-to-peer communication

Streamr: Peer-to-peer data streaming

Streamr is a peer-to-peer network for publishing and subscribing to real-time data streams. Built on a decentralized messaging protocol, it ensures robust, scalable, and censorship-resistant data transport.

Streamr key features

• A topic-based publish-subscribe system for secure, tamper-proof messaging

• Real-time data sharing for applications like IoT, smart cities, and in-house systems

• Open-source architecture enabling developers to integrate decentralized messaging without relying on central servers

  
  

Streamr’s Ethereum-based tokenomics incentivize node operators while ensuring data integrity and transparency. By democratizing data transport, Streamr is redefining real-time messaging infrastructure for decentralized applications.

Improving GPS systems with DePIN

GPS technology has transformed industries, enabling seamless navigation, logistics, and operations. However, traditional GPS suffers from inherent inaccuracies, typically ranging between 1-3 meters, which limits its utility for precision-critical applications like autonomous vehicles, drone deliveries, and precision agriculture. This is where Real-Time Kinematic (RTK) and decentralized networks like GEODNET and FOAM emerge as game-changers, offering centimeter-level accuracy, enhanced security, and user incentives to power the next generation of location-based technologies.

The promise of RTK technology

RTK is a satellite navigation technique that enhances GPS accuracy to centimeter levels by utilizing fixed base stations and mobile rovers. The base stations calculate real-time corrections to eliminate errors caused by atmospheric conditions and satellite signal inconsistencies. RTK is indispensable in precision-critical industries such as land surveying, agriculture, and autonomous navigation.

RTK’s real-time corrections are pivotal for use cases like:

• Precision farming, reducing resource wastage by 15% and increasing crop yields by 20% (Source)

• Drones, enabling 50% faster data processing in aerial surveying

• Autonomous vehicles, reducing route deviations by 25%, ensuring safer navigation.

  
  

Despite its potential, traditional RTK systems face high costs and limited scalability, paving the way for innovative decentralized solutions like GEODNET and FOAM.

GEODNET: Democratizing RTK with DePIN

GEODNET combines blockchain and RTK technology to create a decentralized RTK network. Unlike legacy providers such as Trimble and Hexagon, GEODNET leverages affordable base stations, priced at only $700 compared to legacy costs of $25,000 per station. This affordability translates into significant cost advantages for users, with GEODNET offering RTK services starting at $20-$400 annually, compared to legacy fees averaging $2,500 per device.

• Network coverage: GEODNET operates over 10,000 base stations across 140 countries, doubling the coverage of legacy RTK providers

• Cost-effectiveness: For every $1M spent, GEODNET deploys 1,400 stations covering 100,000 sq km, compared to 40 stations covering less than 5,000 sq km by incumbents

• Token incentives: Participants earn GEOD tokens by hosting base stations, fostering a community-driven network that provides unparalleled accuracy and affordability

  
  

GEODNET’s scalable, low-cost infrastructure is already disrupting traditional RTK markets, positioning itself as the go-to solution for high-precision location services. We would recommend reading this recent report by Blockworks for a deeper dive into GEODNET’s fundamentals.

FOAM: Blockchain-powered Proof of Location

FOAM is redefining location verification through a decentralized, blockchain-powered Proof-of-Location system. Unlike traditional GPS, which is prone to spoofing and hacking, FOAM ensures secure and tamper-proof location data using terrestrial radios and blockchain-based validation.

• Technology: FOAM uses time-of-flight algorithms and digital signatures to localize devices securely, independent of satellite-based systems. The integration with Ethereum ensures transparency and resistance to censorship.
• Applications: FOAM’s decentralized map and location services are invaluable for industries like finance, supply chains, and critical infrastructure requiring secure and verified location data.
• Deployment: FOAM’s MVP launched in 2023 on the Optimism OP Stack, and its Zone Anchors are now live on Base. These anchors enable users to mint Presence Claims over radio using the Cycloid hardware wallet, enhancing the network’s reach and functionality.

FOAM also incentivizes participation through its FOAM token, aligning the interests of users and contributors while maintaining a community-owned model. By securing critical infrastructure and offering fault-tolerant location services, FOAM is a game-changer in decentralized GPS technology.

Whether Weather Needs DePIN?

The lack of ground-based weather data has long been a bottleneck in improving weather forecasting accuracy—affecting industries like agriculture and energy, which lose billions annually due to imprecise predictions. Traditional government-managed weather stations are costly, inefficient, and often fail to deliver comprehensive data, especially in underserved regions.

This gap creates an opportunity for Decentralized Physical Infrastructure Networks (DePIN) to transform the weather data landscape. Crypto-native projects like Weather XM (which we discuss next) can fill this gap and enable more precise and efficient weather monitoring systems.

WeatherXM: Decentralizing weather reporting for efficiency and accuracy

WeatherXM leverages blockchain to create a decentralized weather station network, addressing the critical shortage of ground-based weather data. Here's how WeatherXM is leading the DePIN revolution:

• Decentralized ownership:

  • Weather stations are owned and operated by individuals, not centralized institutions.
  • Community members install WeatherXM devices (e.g., Helium, D1 WiFi, or Pulse 4G bundles) to collect hyperlocal weather data.

• Blockchain Integrations

  • Data is secured and verified on Arbitrum, enabling tamper-proof records and fair $WXM token rewards.
  • Rewards are distributed based on Quality of Data (QoD) and station placement with over 3 million $WXM already distributed

• Innovative tech

  • Solar Obstacle Detection (SOD) uses solar irradiance to ensure accurate data and penalize poorly installed stations. SOD leverages the Sun's predictable behavior to validate data accuracy and detect anomalies in station installations.
  • Advanced modeling predicts irradiance curves with 90-meter precision for any 10-minute window, ensuring high data quality.

  
  

WeatherXM key milestones and impact

• Building a treasure trove of data: WeatherXM reports collecting over three million station-days of weather data

• Growing scale and reach: Over 6,000 weather stations in 80+ countries, aiming for 50,000 by 2025 to become one of the largest global weather networks.

• Improving global access to weather data: WeatherXM has rolled out special programs  in LatAm, Africa, and India delivering 2,270 weather stations to underserved areas.

  
  

WeatherXM also used the Paris Olympics as an opportunity to display the value of its tech. The project deployed 40 Pulse (WB3000) weather stations at the Paris Olympics 2024 as part of an R&D initiative to monitor and analyze real-time weather conditions. These stations provided hyperlocal, accurate weather data, helping athletes, officials, and event organizers make informed decisions. The key goals of the program included:

• Monitor conditions to assess and mitigate athlete, official, and spectator discomfort during extreme heat
• Data collection for research on heat stress and its impact on performance and safety

WeatherXM potential use-cases

• Agriculture: Hyperlocal weather data optimizes crop yields, irrigation, and disaster preparedness.
• Insurance: Enables parametric weather insurance based on precise data.
• Logistics: Improves supply chain efficiency by mitigating weather-related disruptions.
• Travel and Tourism: Assists travelers with real-time updates for safe and efficient planning.
• Disaster Management: Early warnings for floods, hurricanes, and heatwaves enhance preparedness and response.

Conclusion

DePIN represents a natural evolution of decentralized principles, moving beyond finance to physical and digital infrastructure. In this article we examined how DePIN is transforming infrastructure by decentralizing access to critical resources like compute power, energy, and weather data. This paradigm shift addresses challenges of scalability, affordability, and sustainability that traditional systems struggle to meet.