1. The Unique Challenges of DePIN Founders
DePIN represents a transformative opportunity within the broader crypto ecosystem. Unlike traditional blockchain projects focusing solely on digital assets, DePIN is about decentralizing real-world infrastructure. This shift can potentially reshape industries like energy, telecommunications, and mobility, offering a more equitable and transparent way to build physical networks.
However, DePIN is among the most complex sectors in the crypto space. While many blockchain projects deal with software, DePIN founders must juggle developing, manufacturing, and deploying physical hardware. This process is time-consuming and requires extensive resources, especially when competing against well-established Web2 giants like telecom, energy, and mobility industries. Founders need a diverse skill set, spanning hardware logistics, software integration, and business acumen to make their projects successful.
Launching a DePIN project takes a certain level of determination, or as Connor Lovely, columnist at Coindesk says, a little “crazy.” According to him, these projects aim to decentralize real-world infrastructure, creating systems that rely on physical devices interconnected by blockchain. The real-world utility that makes DePIN projects so interesting is also what makes them difficult to build.
2. Supporting Innovation with Tools and Resources
Recognizing these challenges, companies and investment firms like IoTeX, Hotspotty, EV3, and DePIN Pulse have developed tools to lower the barriers to entry for new DePIN founders. By providing essential resources and frameworks, these platforms enable founders to focus on innovating rather than struggling with technical overhead.
For example, Hotspotty’s DePIN Hub offers project profile pages, enabling founders to highlight their community growth, token price, and trading volume. This platform simplifies how projects tell their story, providing visibility through social sentiment analysis and third-party media coverage.
Similarly, EV3’s DePIN.Ninja tracks on-chain revenue for DePINs and presents financial metrics in an easy-to-understand format, which is particularly useful in funding and launching numerous high-quality projects for founders looking to attract investors.
3. The Map Explorer: A Critical Piece of DePIN Infrastructure
Connor also pointed out that one of the most crucial components of any DePIN project is the map explorer. This tool provides a visual representation of the devices within the network, their locations, token prices, and other vital data like on-chain revenue. Historically, each DePIN project had to develop its explorer from scratch, which was time-consuming and inefficient. The need for backend, frontend, and smart contract work could take months.
Today, platforms like IoTeX’s DePINscan streamline this process. DePINscan provides comprehensive data for the entire DePIN ecosystem, including sector-wide metrics such as market cap, trading volume, and device locations. It also offers free project profile pages, helping founders present minor-relevant information like device costs, earnings, and payback periods. This tool allows DePIN projects to track their growth while making key data accessible to stakeholders.
4. Simplifying the Path for DePIN Founders
These advancements in DePIN tools have significantly reduced the time and effort required for new projects to enter the market. By making these foundational elements more accessible, the go-to-market time for DePIN projects has shortened dramatically. Founders can now focus on scaling their ideas rather than reinventing the wheel when it comes to infrastructure. This increased speed and ease of entry are crucial for fostering innovation in the sector, as it allows for more experimentation and creativity. The ability to aggregate and publish data efficiently not only helps individual projects but also boosts the visibility of the entire DePIN sector.
The DePIN Association’s official establishment signifies a pivotal moment as ten innovative entities converge to propel the DePIN ecosystem forward, demonstrating a unified dedication to fostering a more connected and decentralized world through collaborative efforts.
The sector has already come a long way, funding and launching numerous high-quality projects. However, there’s still much work to be done. As more companies and tools enter this space, the DePIN sector is expected to continue its upward trajectory.
The information provided in this article is for reference only and should not be taken as investment advice. All investment decisions should be based on thorough research and personal evaluation.
