Categorization
There are many ways to categorize DePINs. We focus on the demand-side service provided by each network, since we believe that to be the primary determinant of scale over a sufficiently-long time horizon. Projects can change categories over time as their demand-side focus shifts.
We recognize eight core categories of DePINs:
| Demand-side Job-to-be-Done | |
|---|---|
| Sensors | Capture data |
| Compute | Store and manipulate data |
| Wireless | Move data from one location to another |
| Mobility | Move assets from one location to another |
| Energy | Generate and store electricity |
| AI | Generate and store machine intelligence |
| Human Capital | Generate and store human identity and reputation |
| Robotics | Provide offchain services delivered by machines |
-
Decentralized Compute networks, or DeVINs (Decentralized Virtual Infrastructure Networks), aggregate computing resources to provide memory, storage and compute capacity on-demand. DeVIN is the only category whose core service can be verified cryptographically, leading some investors to categorize them outside of DePIN entirely.
-
Decentralized Wireless networks, or DeWis, aggregate wireless resources like radios, antennas, satellites or IP addresses to provide bandwidth on-demand. This category also includes privacy-focused routing or messaging protocols whose primary function is to move data privately between users in different locations.
-
Decentralized Energy networks, or DeGENs (Decentralized Generative Energy Networks), aggregate renewable energy resources like solar panels, batteries, electric vehicles or thermostats to provide electricity and/or carbon mitigation assets on-demand. Most DeGENs describe themselves as either decentralized virtual power plants and/or as self-perpetuating onchain sinks for carbon mitigation assets.
-
Decentralized Sensor networks generate novel datasets and provide access to data and/or the insights derived from data. These networks can collect various types of data (e.g. text, video, audio, location), across a variety domains (e.g. weather, mobility, health, social media), and sell to various end-markets (e.g., web2 SaaS & marketplaces, AI developers, financial institutions).
-
Decentralized Mobility networks coordinate the logistics of moving physical assets like people (ride-sharing), consumables (food delivery), vehicles (mobility) and shipments (logistics) between locations. These networks generally combine software- and hardware-based verification to coordinate trips and mediate disputes in a trust-minimized manner.
-
Decentralized AI networks aggregate the various resources above - e.g. compute, energy, bandwidth and sensor data - to produce machine intelligence. While each underlying resource contributes to the process, only networks that directly incentivize the development of machine intelligence fall into this category.
-
Decentralized Human Capital networks aggregate information about people’s identities and reputations in order to facilitate low-trust connections. This category includes general-purpose proof-of-humanity identity networks; decentralized value-added marketplaces for labor, dating or social media influence; as well as onchain loyalty and rewards ecosystems.
-
Decentralized Robotics networks aggregate machines in order to provide offchain services like manufacturing, hospitality, construction, medical care and defense. This is the most nascent category of DePIN in both developer and investment activity.