Depin Industry: From Behind the Scenes to Center Stage
In 2024, the Depin department is experiencing a new wave of attention. According to Messari's 2024 Messari report, more than 13 million devices worldwide contribute to various Didi application networks every day, with the total market value of related tokens exceeding $50 billion. However, the current scale remains moderate compared to the industry's trillion-dollar market potential. The report highlighted that in 2024, 20 depin projects exceeded 100,000 active nodes, of which 5 exceeded 1 million nodes. Despite initial progress in node deployment, projects still face the challenges of demand generation and monetization.
As one of the earliest representatives of DEPIN, Helium continues to advance the upgrade and expansion of IT networks and has carried out expansion efforts in 2024. After its Lora IoT network migrated to the Solana chain, the number of new IoT hotspots reached 32,900 in the fourth quarter, while 5G mobile hotspots grew to 24,800. Furthermore, helium can significantly improve actual network utilization by working with traditional telecom operators. In the fourth quarter of 2024, helium was more than 576 TB of data traffic for operators, marking a 555% increase in the quarter. In addition, the helium phone has more than 124,000 cumulative users.
Key challenges of the DEPIN department
Despite the promising prospects and impressive data, the performance of the Depin industry market remains incredible. We believe that this is largely due to the ongoing challenges faced by early depin projects, and for this, a comprehensive solution has not yet emerged.
High hardware cost (capital expenditure):
Inevitably building a physical network requires hardware deployment, and participants are usually responsible for purchasing the equipment themselves. This is a major investment for users and greatly raises the barriers to node expansion. For example, helium initially requires individuals to purchase professional hotspot equipment, and the cost per unit ranges from $500 to $1,000. This discourages most small and retail participants; without strong incentives, such as mining rewards, it is difficult to convert Web2 users to Web3 participants.
Cold start challenge:
The value of the DEPIN network depends to a large extent on the node coverage density and service utilization, resulting in significant cold start problems. Without a sufficient number of nodes, it is difficult to attract end users. Furthermore, there is little motivation for new nodes to join without meaningful traffic. This dynamic is similar to the Gamefi industry, where players pour in when token prices rise, but trigger a death spiral when prices fall. Many early projects rely primarily on token incentives to drive supply growth, but have been working to stimulate real demand.
Node quality issues:
Driven by incentive mechanisms, some nodes try to maximize mining rewards through cheating, which ultimately reduces overall network performance. For example, during early development of helium, forged node locations, cluster deployments and mutually proven cases were reported, seriously undermining the effective coverage of the network and the authenticity of data.
SYBIL resistance mechanism:
Most current Depin projects still lack strong mechanisms to defend against SYBIL attacks and insufficient verification of device identity and data authenticity. This opens the door to fake data recorded on the chain. At the same time, excessively strict SYBIL resistance mechanisms may raise concerns about internal preference. For example, in 2024, some Tier 2 projects launched on exchanges face allegations of unfair early access due to aggressive anti-Semitic filters. So the team must design a transparent and well-calibrated verification system to ensure neither party is harmed, setting a cautious balance between security and user experience.
Traditional Dishin in practice: Lessons from helium
In 2019, Helium became one of the first projects to launch decentralized wireless networks, entering the market through IoT hotspots and gaining pioneer recognition from Depin Space. By launching HNT tokens, helium-incentived individual purchases and deployment hotspots, providing low-power, extensive regional network coverage for IoT devices. This incentive model has achieved significant success in supply. Within a few years, nearly 1 million Lora hotspots have been deployed worldwide. At its peak, helium built the world's largest privately operated IoT network covering hundreds of cities. However, early success of helium is largely limited to the node scale, while the implementation of actual network utilities lags behind nodes.
Due to the fragmented nature of IoT applications and the willingness to pay, helium networks have long lacked stable revenues for end users. The token economy is largely caused by the influx of CEX or DEX and new players. At one point, despite being worth billions of dollars, the helium network’s monthly data revenue was less than $2,000. This sharp contrast reveals structural flaws in the Depin model, a focus on infrastructure construction and a lack of focus on operating utilities. There is no real demand, even large-scale node networks become an empty promise, only able to make short-term token prices rise, but have little long-term value.
However, helium has not stopped. In 2022, the team proposed a multi-caliber architecture and introduced Subdaos to differentiate incentives to differentiate between its networks such as Lora and 5G. In 2023 Helium abandoned its first layer of chain and moved to the Solana ecosystem to improve performance and reduce maintenance costs. More importantly, helium is beginning to actively expand demand. Through partnerships with U.S. mobile operators, it launched Helium Mobile, integrating small 5G units into traditional telecom markets and enabling mass consumers to become direct users of the network. By co-branding hotspots with telecom operators, helium helps fill geographic coverage. By the end of 2024The IT network has attracted more than 120,000 mobile users, and hotspots have begun to process real voice and data traffic.
The helium trajectory illustrates the key lessons of Didedin, and simply extending nodes through incentives is not a sustainable strategy. The real challenge is improving network utilization and reducing barriers to user engagement, or more clearly achieving meaningful commercialization will determine the next stage of success or failure.
Network Congestion: Exploring depin through low barrier infrastructure
While searching for breakthrough applications in the Depin space, some teams focus on the infrastructure that is more closely integrated into everyday life. Internet congestion appeared in 2024 as a representative example of this trend. Unlike helium concentrated on communication networks, network charging targets high-frequency, basic demands for device charging, by building a decentralized, shared charging network. Its core product is the world's first Web3 to enable Smart Charger, which innovatively introduces a charging-Irving (C2E) model that converts regular charging activity into crypto-based rewards.
Network charging is designed to bridge the gap between users and physical infrastructure, allowing anyone to participate in building and access services with extremely low entry barriers. After purchasing a charger, users only need to charge the device for five minutes to generate a "charging certificate", which is recorded by the chip's built-in charger and receive a token reward. This allows users to seamlessly provide true charging services and energy consumption data for the decentralized network, thus transforming daily consumption behavior into mining activities and significantly reducing technology and application thresholds. With this innovative design, network charging is considered a major breakthrough in the Diade field, potentially attracting a large number of users who have never interacted with Web3 before. As the project describes, network charging smart chargers are rapidly becoming the first mining equipment for many young users and helping to migrate the massive scale of Web2 users into the Web3 ecosystem.
In addition, each network charging device is equipped with a "network" security module that utilizes advanced AI technology to verify the authenticity of charging activities. Only actual energy consumption can produce effective "proof of charge" and receive rewards. This integrated hardware software solution prevents problems such as location reports and waste of resources in early counterfeit helium, thus ensuring the authenticity of network nodes and the credibility of the collected data.
Network charging also invests heavily in enhancing user engagement and activities. In addition to the basic charging to Irving features, the app also introduces a wealth of interactive features and reward systems. An example is the “AI Doggy” pet system, where users can adopt and cultivate pets by completing charging tasks, interacting with other users and even breeding new pets, creating a dynamic connection between charging behavior and in-app progress. Additionally, the app offers a variety of mini games that allow users to make money in their spare time while entertaining themselves. These gaming elements significantly increase the platform’s appeal and help build an automated sustained ecosystem cycle – allowing users to earn rewards from charging to engaging in a wider ecosystem, and contribute to internal resource circulation and growth.
Overall, online charging stands out among the new generation of Didi application programs. Through thoughtful application solutions and innovative technology design, it injects new vitality into the field by reducing barriers to engagement, maintaining network authenticity, promoting user engagement and creating new value in the ecosystem.
Prospects and thoughts
From a 2025 perspective, the depin sector that integrates blockchain with physical infrastructure is steadily moving beyond proof of concept and large-scale applications. Messari predicts that Germans will achieve 100 to 1,000 times growth over the next decade, thereby gradually capturing market share from traditional centralized players. Realizing this potential depends on solving current pain points, with pioneers like Helium and Dimo offering courses, as well as injecting fresh momentum into new projects such as network charging.
Going forward, obstacles, high frequency usage and strong user interaction are emerging as key design trends. By connecting blockchain incentives to fundamental real-world needs such as charging and navigation, Depin Projects can attract users and promote lasting service needs. The team is also exploring more sustainable business models, such as service subscriptions and data monetization, to reduce dependence on token rewards.
Opportunities will bring challenges. Regulations, hardware supply chains and competition will all shape the depin path forward. However, the vision of building-sharing, decentralized physical networks remains convincing
