Blockchains are generally slower databases with decentralized applications (dApps) offering a clunkier UX than their Web2 counterparts. Crypto transactions are often a hurdle for adoption, but when it comes to the coordination of physical resources, such as hardware, it excels. DePIN is simply not possible without blockchains. Projects like GEODNET epitomize this value proposition, showcasing that there are actual use cases and businesses that come to crypto because of commercial necessities—not because they want to build something in crypto and launch a token.

Source: Kaito.ai – GEODNET is actually the world’s largest real-time kinematics network, enhancing GPS accuracy by 100x. While this might seem overkill for your daily commute, it’s a game-changer for industries like agriculture, drones, virtual reality, self-driving cars, and robotics.

Founder Mike Horton is not a crypto native. Instead, he started building on blockchain rails after experimenting with Web2 solutions and realizing how inefficient and unscalable operations could be. Driven by a real-world need, Mike and his team had no choice but to rely on crypto if they really wanted to tackle such a big problem that has downstream effects across a range of industries. With faster and cheaper infrastructure deployment, provided that the tokenomics are sustainable, GEODNET is one of the best examples on the market to showcase the potential of DePIN for achieving large-scale social coordination and CapEx reduction.

Source: State of DePIN 2023 by Messari and EV Research  – The DePIN Flywheel is all about building infrastructure networks  that get stronger as they grow bigger.

With DePIN there is an operational cost benefit in terms of crowdfunding, a sustainability benefit through token incentives and supply control based on demand pressure, and there is also a speed benefit for deploying physical infrastructure. Trying to deploy infrastructure, particularly in the Western world, is super slow and time-consuming. DePIN has proven that you can build real-world infrastructure quickly. Once the core infrastructure is built, then businesses start coming and operating on top. This is a real moat that creates plenty of downstream economic opportunities for its early adopters.