DePIN and RWA. Bridging from Web2 to Web3 | Posted by Depin Daily | Coins | April 2024

Bridging from Web2 to Web3

DePIN, a decentralized physical infrastructure, has recently become very popular on Web3 Twitter. The technology aims to utilize real hardware or, in some cases, miners combined with blockchain software. These physical assets are used to collect some data and transfer it to the blockchain in a secure manner. I see a lot of hype around DePIN primarily as a means to generate passive income, but I can't help but feel that we're missing the bigger picture. Overall, we seem to be focusing on the trees and not the forest.

The DePIN project is a completely different beast compared to the existing Web2 project. DePIN flips the script and shifts the burden of startup costs onto users. You might stop and think, “Is that fair?” The DePIN project typically offers token-based rewards to those who take the risk of purchasing miners or running nodes. This is where DePIN is of greatest interest. Below is how we call it the DePIN Flywheel or DePIN Hypewheel.

Token-based incentives encourage more users to run nodes. As the number of nodes increases, network quality improves, attracting more customers. This cycle is seemingly only accelerating…