Key strategies on how to make DePIN mainstream | Opinion
12/18/2024 19:23There are three pillars for DePIN to be mainstream: leveraging existing hardware, broadening accessibility, and prioritizing tangible utility.
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The web3 ecosystem is a hotbed of innovation, offering bold solutions that promise to decentralize systems and empower individuals. Yet, for all its potential, web3 has yet to become a mainstream phenomenon. Adoption remains slow, hindered by a steep learning curve and significant barriers to entry.
Decentralized physical infrastructure networks—otherwise known as DePINs for short—represent a new frontier in this space, with the potential to transform industries by making infrastructure faster and cheaper to deploy. However, taking DePIN from a niche concept to a widely adopted model requires more than just technology.
These insights come from my journey as a founder tackling the challenges of building a DePIN project. Scaling to tens of thousands of users and mapping millions of miles has taught me invaluable lessons about adoption and decentralization—lessons I believe can guide others aiming to make DePIN mainstream.
In this article, I explore three pillars for DePIN projects to achieve mainstream adoption: leveraging existing hardware, broadening accessibility, and prioritizing tangible utility.
Pilar 1: Maximize existing hardware
Building new hardware introduces significant hurdles, such as manufacturing challenges and component shortages, which limit scalability—a crucial factor for global adoption. To gain mainstream traction, DePIN projects must look to existing commodity hardware as a launchpad.
Smartphones, with a projected user base of 7.1 billion globally by 2024, present an ideal foundation. Smartphones are not just communication tools; they are powerful mini-computers with advanced sensors, cameras, and connectivity options. This vast network of existing hardware provides an ideal foundation for DePIN projects.
For example, the Solana Saga, an Android smartphone designed by Solana Labs, integrates seamlessly with the Solana blockchain, offering a straightforward experience for decentralized applications. However, the approach isn’t limited to blockchain-native devices. At NATIX, we leverage the power of smartphones to create a decentralized camera network without the need for new hardware. Similarly, Silencio uses smartphones to monitor and reduce noise pollution, showcasing how DePIN projects can use smartphones to scale quickly.
Pillar 2: Broaden web3 accessibility beyond crypto
In the web3 space, we’re accustomed to cryptocurrencies, digital wallets, and decentralized finance. However, a significant portion of the population is not. Many people are unfamiliar with or even unaware of these concepts, creating a barrier to mainstream adoption.
To make DePIN projects accessible to everyone, it’s essential to incorporate non-crypto rewards alongside crypto incentives. Integrating gift cards, discounts, or other recognizable perks ensures participation isn’t limited to those already immersed in crypto.
Inclusivity doesn’t stop at rewards; it’s also about creating a user experience that feels familiar and intuitive. For instance, offering registration options via email or SMS instead of only wallet-based sign-ups can make it easier for non-crypto users to get started.
Projects that combine crypto and non-crypto incentives alongside intuitive design are likely to attract a more diverse audience. By balancing inclusivity with innovation, DePIN can bridge the gap between web3 and the mainstream.
Pillar 3: Prioritize utility over token earnings
No matter how novel the technology is, a project can only succeed by delivering real value to its users. While tokens may attract initial interest, retention hinges on the project’s ability to provide lasting benefits that enhance daily life.
DePIN projects must focus on tangible applications that solve real problems.
The goal should not be to create entirely new habits but to improve on existing ones, making it easier to adopt your product. Whether addressing traffic congestion, monitoring air quality, or enhancing data privacy, DePIN projects should prioritize user-centered solutions over speculative tokenomics.
Addressing the challenges: Scalability and retention
While leveraging existing hardware and broadening accessibility offers a pathway to scale, challenges remain. One lesson we learned at NATIX is that smartphone-based DePIN models, for example, often struggle with lower user retention compared to hardware solutions that operate passively. Nevertheless, if done right (e.g. by leveraging gamification, offering utility for the users, etc.), it can become a hyper-scalable way of building infrastructure. Combining increased utility with a gamified user experience worked wonders for projects like Silencio and NATIX, increasing retention rates and opening a new avenue for smartphone-based DePIN innovation.
At the same time, scaling infrastructure requires strategic partnerships and community involvement. Collaborating with local organizations or municipalities can help integrate DePIN projects into broader ecosystems, reinforcing their value and adoption.
Building DePIN for the mainstream
Just as the iPhone revolutionized the way we think about and use mobile technology, well-thought DePIN models can transform how we interact with the physical world, making decentralization not just a concept, but a daily experience for billions.
The journey to mainstream adoption for DePIN and web3 as a whole is not about flashy technology or complex innovations that only a select few can understand. It’s about taking what already exists—whether that’s smartphones, user habits, or everyday problems—and making it better, more accessible, and more valuable through the power of crypto and decentralization.
By aligning technological vision with practical user needs, we can bring DePIN—and web3—to the mainstream.
Alireza Ghods is the CEO and co-founder of NATIX. He has a PhD in geospatial localization and ample experience as an R&D engineer in the geospatial data market, autonomous driving, and building local dynamic maps. Previously, he led IoT and Blockchain operations in Europe for PWC.