DePIN Protocols

Definition ∞ DePIN protocols, or Decentralized Physical Infrastructure Networks, are blockchain-based systems that incentivize individuals to build and maintain real-world physical infrastructure. These protocols use cryptocurrency rewards to coordinate a distributed network of participants who provide services like wireless connectivity, energy grids, or data storage. They aim to democratize access to infrastructure development and operation. The model leverages blockchain for transparent coordination and tokenomics for resource allocation.
Context ∞ DePIN protocols represent a significant trend in the intersection of blockchain and the real economy, often featured in news about Web3 applications. A key discussion point is their potential to disrupt traditional centralized infrastructure providers by offering more resilient and community-owned alternatives. Future developments focus on expanding the types of physical infrastructure that can be decentralized and scaling these networks for broader adoption.