Solana Gets Physical With DePIN
DePIN is catching a bid.
Momentum is building for the decentralized physical infrastructure networks as boosters see new paths for adoption and appetite for crypto outside of our frequently insular market.
Fueled by the breakneck growth of Helium Network's HNT, up 70% over the past 30 days, decentralized infrastructure networks have become central to conversations around how to showcase the practical utility of crypto. Whether or not this sector's narrative upswing is able to break the broader market out of its current rut, there's growing excitement around leveraging crypto to expand access to physical and virtual resources, especially through rising protocols on Solana.
Today, we’ll look into what exactly DePIN is, why Solana has begun to stand out as the leading platform for this vertical, and what DePIN protocols on its network are showing promise 👇
Solana's DePIN Edge
DePIN (decentralized physical infrastructure) projects are blockchain-based networks where participants contribute resources in exchange for token rewards. These can be physical resource networks like cellular connectivity and energy distribution or virtual resource networks that provide access to computing power, bandwidth, and cloud storage.
Solana’s DePIN ecosystem has experienced substantial growth this year, with multiple protocols hitting all-time highs.
For instance, Nosana, a decentralized GPU network, achieved record levels of active GPU operators and rewards distributed in July. Kuzco, another distributed compute provider, saw an 18x increase in online GPUs since its launch in March. Helium Mobile reported a 60% increase in new subscribers in July, while Hivemapper, a decentralized mapping network, set a new retention record for participants continuing their network contributions over two months.
These milestones reflect the growing momentum of DePIN on Solana and underscore the platform’s ability to support scalable, high-performance decentralized infrastructure networks.
🌎 Rising Physical Infrastructure Networks
While DeVIN addresses AI's supply constraints, the potential to expand real-world physical resource networks distinguishes crypto, making the projects creating these solutions particularly worth highlighting.
🔵 Helium
Helium is a decentralized blockchain network designed to create global wireless infrastructure. The network operates through a consensus mechanism called Proof of Coverage, where participants provide wireless network coverage by running Helium hardware and earn Helium’s native token, HNT, in return. These hotspots work together to form a massive, low-power network for IoT devices.
So far in 2024, Helium has seen significant traction and adoption, particularly with its MOBILE Network, a subDAO of Helium extending the concept of decentralized coverage to cellular networks and building a decentralized 5G network powered by Helium Hotspots equipped with 5G radios. This model has proven effective, with MOBILE accounting for ~90% of Helium’s entire revenue and supporting over 112K users on its $20/month unlimited data plan, achieved by partnering its own distributed coverage with T-Mobile’s network. Helium's IOT Network, another subDAO, is also scaling rapidly. For example, Greenmetrics.ai, an environmental monitoring system built on Helium, partnered with the City of Porto in Portugal to enhance flood resilience using their network, while Heliotics uses it to monitor temperature and humidity in museums and libraries across Europe.
Looking ahead, the Helium Foundation sees the network as a launchpad for new DePINs, leveraging its global footprint and community-driven approach to support diverse, decentralized infrastructure projects. The vision, dubbed the "Network of Networks,” aims to create a decentralized ecosystem where multiple networks share resources and drive innovation across a range of applications, from compute and storage to mapping and mobility.
🟠 DAWN
Developed by wireless provider Andrena, DAWN aims to decentralize wireless internet services, focusing on areas where traditional infrastructure is lacking or costly.
Similar to how solar panels let consumers sell electricity, DAWN allows users to share internet access. It operates on a "proof of backhaul" system, measuring node throughput to ensure reliable connections and creating a decentralized, trustless network. DAWN offers internet for under $10/month, making it the lowest-cost provider in the broadband industry. To drive expansion, the protocol uses Medallions, rewarding holders with 12% of onchain revenue in regions where Medallions are staked.
We’re thrilled to announce our $18M raise led by @dragonfly_xyz!
— DAWN (@dawninternet) August 7, 2024
Thank you to our investors @6thManVentures, @wintermute_t @paraficapital @robotventures @EV3ventures among others. (🧵) pic.twitter.com/nosPgLtPgx
DAWN is currently testing its protocol with over 3K households in NYC, generating $1M in ARR in the process. At launch, it is expected to cover 3M+ U.S. households. DAWN, the network's native token, allows users to buy bandwidth and rewards them for staying connected, referring others, and validating the network.
Users can also sell excess bandwidth and contribute resources to other DePIN projects like Filecoin, Grass, or Akash. As DAWN prepares for its token launch, Andrena plans to move its existing customers and revenues onchain, further integrating with the decentralized ecosystem.
🟡 Dabba
Backed by Y Combinator and Multicoin Capital, Dabba focuses its DePIN network on providing high-speed internet access across India, where broadband penetration remains low. Targeting the significant connectivity gap — Dabba aggregates over 150K Local Cable Operators (LCOs) to expand internet access across the country. These LCOs, primarily concentrated in underserved areas, are provided with the necessary tools, hardware, software, and capital to scale their networks and expand their subscriber bases.
Using the DBT token to ensure smooth network economics with a mint and burn feature, Dabba’s decentralized approach allows for accelerated infrastructure expansion, especially in rural and semi-urban areas neglected by major telecom companies focusing on large cities.
🔵 Hivemapper
Hivemapper is a decentralized mapping network that harnesses the power of community collaboration to create and maintain high-quality maps.
Founded in 2015 by Ariel Seidman, who previously led Yahoo! Maps, Hivemapper operates through a network of contributed-owned dashcams that collect data as their owners drive, earning them HONEY tokens in exchange for their contributions. These tokens can be used to access the map data, driving a user-powered ecosystem where the economic benefits of map development are shared with the community. Hivemapper’s decentralized approach addresses significant industry challenges, such as uneven coverage and outdated data, by enabling anyone to contribute to the map’s accuracy and freshness.
The network also incentivizes users to improve map quality through AI training games and quality assurance checks, further enhancing the data’s reliability. With the integration of state compression technology on Solana, Hivemapper can manage the vast number of transactions needed to reward contributors efficiently, making the entire system scalable as it grows.
What's Next
As the market continues to cycle through existing value, DePIN networks have emerged as a promising path to revitalizing interest in crypto, extending its reach beyond traditional boundaries.
Solana, with its optimized scalability and low-cost transactions, has become the natural home for these networks, offering the technological foundation that DePIN protocols require to thrive. The overall surge of DePIN this year, from virtual infrastructure like Nosana and Kuzco to physical like Helium, Dabba, and Hivemapper, showcases how Solana's unique strengths are pivotal in driving the growth of decentralized infrastructure. By enabling access to both physical and virtual resources, these networks are not only proving the real-world utility of crypto but also positioning Solana as the leading platform for this vertical.
As these infrastructure networks continue to expand and evolve, they may well provide the momentum needed to break the market out of its current stagnation and into a new phase of growth, all while demonstrating to the external world the coordination power of blockchains and tokens.
David C