2025 DePIN Report: Opportunities and Challenges in the Age of AI

With the increasing awareness and enhanced interoperability between platforms, the development momentum of DePIN will accelerate. Ultimately, it will not only bring a new way to build infrastructure but also a new model for sustainably and inclusively sharing benefits on a global scale. This article originates from a piece by PowerBeats, compiled, translated, and written by ForesightNews. (Summary: DePIN Application》NATIX Partners with Southeast Asia's Largest Unicorn Grab: Building a New Generation of Decentralized Global Map) (Background Supplement: DePIN Explosion! Helium Reaches "Automatic Connection" Agreement with AT&T, User Surge Leads to HNT Pump of 18%) Recently, The Block Research released the "2025 DePIN Report," which PowerBeats has translated its main portions, as detailed below. The "DePIN Report" provides an in-depth and data-driven overview of the Decentralized Physical Infrastructure Network (DePIN) ecosystem, highlighting key participants, trends, challenges, and opportunities shaping its development. By integrating data from leading DePIN projects, capital flows, market dynamics, and technological advancements, this report offers a comprehensive perspective on the long-term development of the field. As DePIN continues to redefine global infrastructure through decentralized collaboration, these insights will become a valuable resource for stakeholders hoping to understand its development direction and meaningfully participate in its future construction. The Decentralized Physical Infrastructure Network (DePIN) represents a new frontier of blockchain innovation, supporting distributed, user-driven computing, storage, connectivity, sensors, and more. Through token incentives and permissionless participation mechanisms, DePIN challenges traditional infrastructure models, reducing reliance on centralized entities and unlocking new forms of ownership and governance. DePIN originated from early efforts to connect real-world infrastructure to blockchain networks. Although the term "DePIN" became widely known only in 2023-2024, its conceptual roots can be traced back to pioneering projects like Helium and Filecoin, which demonstrated that individuals could exchange physical resources for token rewards. These early models validated the idea of permissionless, community-owned infrastructure networks, laying the groundwork for the broader DePIN movement. Starting from initial isolated experiments, DePIN has evolved into a dynamic and rapidly expanding design space spanning multiple domains. Today, DePIN marks a structural shift in how infrastructure is provided, moving from centralized to open, incentive-driven networks. This transformation is reshaping the deployment, ownership, coordination, and governance of physical infrastructure. Other DePIN networks operate in emerging, niche, or interdisciplinary areas, aiming to address unique infrastructure needs that do not fit traditional classifications. By leveraging decentralized architectures and cryptographic incentive mechanisms, these networks optimize resource allocation, enhance security, and offer open-access alternatives to traditional centralized infrastructures, extending their impact across various industries. Smart contracts and ledger platforms provide DePIN with dedicated infrastructure for secure transactions, asset ownership, and programmable automation. Utilizing diverse decentralized ledger implementations, these platforms optimize the scalability, interoperability, and efficiency of DePIN applications. As the cornerstone of decentralized collaboration, they facilitate trustless data exchange, on-chain resource management, and seamless integration between digital and physical networks. Web3 Cloud offers a complete suite of decentralized cloud services, integrating storage, computing, networking, and streaming into a unified infrastructure. Unlike DePINs focused solely on computing or storage, the Web3 cloud platform provides a universal architecture designed to equally support all core services. This integrated approach can flexibly and scalably support various workloads, from AI training and data hosting to media transmission and Edge Computing, thereby enhancing efficiency and resilience across the DePIN ecosystem. AI DePIN supports the provision of distributed computing capabilities, model training, and inference services, establishing open-access AI infrastructure. With the growing demand for AI computing, these networks offer scalable and cost-effective alternatives, opening new possibilities for AI accessibility and innovation. Decentralized energy networks facilitate peer-to-peer electricity production, storage, and distribution, integrating diverse energy sources to enhance sustainability and grid adaptability. By leveraging decentralized coordination mechanisms and smart incentive measures, these networks drive efficient, resilient, and community-driven energy systems. However, this field is still in its early stages, with most projects in testing or Pre-TGE phases. Although the projects mentioned in this report are pioneering decentralized energy solutions, their inclusion is based on their innovation, vision, and potential impact, rather than established market positions. As the field matures, it will be clearer to identify leading energy DePINs based on on-chain metrics and adoption data. Challenges in Expanding Scalable Distributed Hardware Systems Variations in quality, availability, and security pose difficulties for coordination, while network performance, regulatory constraints, and economic feasibility remain significant barriers to widespread adoption of DePIN. Hardware Access ● Cost Issues: While some DePIN projects leverage existing idle resources, others require dedicated devices. Although these devices are expected to become profitable in the future, the high initial investment and volatility of token rewards create entry barriers for supply-side participants. ● Availability: Investment in AI-related semiconductors has surged, but escalating trade tensions may lead to a global chip shortage. Additionally, specialized hardware for sensor networks requires substantial R&D, resulting in long delivery cycles and limited supply. ● Interoperability: Lack of combinability between devices and protocols limits development potential, results in inefficiencies, hampers supplier profitability, and impedes network scalability, as well as hinders merged mining and multi-network participation. Network Scalability ● Congestion Issues: As DePIN grows, higher data loads and larger network scales may lead to bottlenecks, reducing efficiency and increasing Transaction Costs. Optimized data routing, Layer 2 scalability solutions, and off-chain processing help alleviate congestion and maintain smooth execution. ● Geographical Distribution: Uneven node distribution weakens network resilience and increases risks of centralization; insufficient representation in certain areas limits coverage and service availability, further exacerbating efficiency issues. ● Latency Issues: High latency in decentralized networks reduces performance, making real-time applications unreliable. Moreover, longer data transmission distances and inefficient relay mechanisms can also cause delays, affecting user experience and operational efficiency. Data Security and Privacy ● Network Attacks: Decentralized networks introduce a broader Attack Surface, increasing the risk of data breaches and unauthorized access. Without robust security measures, malicious actors may exploit vulnerabilities in the decentralized infrastructure. ● Privacy and Legal Compliance: Data regulations such as GDPR and CCPA impose strict requirements on data processing, retention, and user consent. DePIN projects must navigate global efficiency and local compliance challenges to ensure adherence.