Recently, The Block Research released the "2025 DePIN Report". PowerBeats compiled its main parts. The following is the report part.
The DePIN Report provides an in-depth, data-based overview of the decentralized physical infrastructure network (DePIN) ecosystem, highlighting the key players, trends, challenges, and opportunities that are shaping its development. By integrating data from leading DePIN projects, funding flows, market dynamics, and technological advances, this report provides a comprehensive perspective on the long-term development of the field. As DePIN continues to redefine global infrastructure through decentralized collaboration, these insights will serve as a valuable resource for stakeholders who want to understand its 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 networks of computing, storage, connectivity, sensors, etc. Through token incentives and permissionless participation mechanisms, DePIN challenges traditional infrastructure models, reduces reliance on centralized entities, and unlocks new ownership and governance models.
DePIN has its roots in early efforts to connect real-world infrastructure to blockchain networks. Although the term "DePIN" has only become widely known in 2023-2024, its conceptual roots can be traced back to pioneering projects such as Helium and Filecoin, which demonstrated that individuals can contribute physical resources in exchange for token rewards. These early models validated the idea of permissionless, community-owned infrastructure networks and laid the foundation for the broader DePIN movement. From its initial isolated experiments, DePIN has evolved into a dynamic and rapidly expanding design space across multiple fields. Today, DePIN marks a structural shift in the way infrastructure is provided, from centralized to open, incentive-driven networks. This change is reshaping the way physical infrastructure is deployed, owned, coordinated, and governed.
Other DePIN networks operate in emerging, niche, or interdisciplinary fields, addressing unique infrastructure needs that do not fit into traditional categories. By leveraging distributed architectures and cryptographic incentives, these networks optimize resource allocation, enhance security, and provide open access alternatives to traditional centralized infrastructure, extending their influence across industries.
Smart contracts and ledger platforms provide a dedicated infrastructure for DePIN, enabling secure transactions, asset ownership, and programmable automation. With a variety of distributed 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 Network ( Web 3 Cloud ) provides a complete set of decentralized cloud services that integrate storage, computing, networking, and streaming into a unified infrastructure. Unlike DePIN, which focuses on computing or storage, the Web3 Cloud Platform provides a common architecture designed to support all core services equally. This integration approach can flexibly and scalably support a variety of workloads, from AI training and data hosting to media transmission and edge computing, thereby improving efficiency and resilience throughout the DePIN ecosystem.
AI DePIN supports the provision of distributed computing power, model training, and inference services, creating an open access AI infrastructure. As the demand for AI computing grows, these networks provide a scalable and cost-effective alternative, opening up 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 resilience. By leveraging decentralized coordination mechanisms and smart incentives, these networks drive efficient, resilient, and community-driven energy systems. However, the field is still in its early stages, with most projects still in testing or pre-mainnet launch (Pre-TGE) stages. While the projects mentioned in this report are pioneering decentralized energy solutions, they were selected based on their innovation, vision, and potential impact rather than established market position. As the field matures, leading Energy DePINs will be more clearly identified in terms of on-chain metrics and adoption data.
Challenges of Scaling Distributed Hardware Systems
Differences in quality, availability, and security make coordination difficult, while network performance, regulatory constraints, and economic feasibility remain major barriers to widespread adoption of DePIN .
Hardware access
● Cost issues : While some DePIN projects utilize existing idle resources, others require specialized equipment. Although these devices are expected to be profitable in the future, the high initial investment and volatility of token rewards create entry barriers for supply-side participants.
● Availability : AI-related semiconductor investments have surged, but growing trade tensions could lead to a global chip shortage. In addition, specialized hardware for sensor networks requires extensive R&D, resulting in long lead times and limited supply.
● Interoperability : Lack of composability between devices and protocols limits development potential, creates inefficiencies, hinders vendor profitability and network scalability, and also hinders merged mining and multi-network participation.
Network Scalability
● Congestion issues : As DePIN grows, higher data loads and larger network sizes may lead to bottlenecks, reduce efficiency and increase transaction costs. Optimized data routing, Layer 2 expansion solutions, and off-chain processing can help alleviate congestion and maintain smooth operations.
● Geographic distribution : Uneven node distribution weakens the network's resilience and increases the risk of centralization; while underrepresentation in certain regions limits coverage and service availability, further exacerbating efficiency issues.
● Latency issues : High latency in decentralized networks can degrade performance and make real-time applications unreliable. In addition, long data transmission distances and inefficient relay mechanisms can also cause delays, affecting user experience and operational efficiency.
Data Security and Privacy
● Cyberattacks : Decentralized networks introduce a wider attack surface, increasing the risk of data breaches and unauthorized access. Without sound security measures, malicious actors may exploit vulnerabilities in distributed 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 strike a balance between global performance and local compliance to avoid penalties and business restrictions.
● Industry-specific restrictions : Industries such as finance, healthcare, and defense are often subject to strict data sharing restrictions. These restrictions make it difficult to adopt decentralized infrastructure that requires distributed access and interoperability, posing challenges to adoption in regulated industries.
Regulatory environment
● Cross-border regulatory complexity : DePIN projects operating across countries often face inconsistent regulatory requirements and legal definitions. This mismatch between jurisdictions makes compliance more complex, especially when the infrastructure spans multiple continents and legal systems.
● Policy evolution : The legal and political environment surrounding digital assets remains volatile. Government and institutional attitudes toward decentralization and crypto infrastructure may change rapidly, creating uncertainty for long-term planning. Regulatory reversals or sudden policy changes could disrupt the entire network, forcing costly adjustments or even shutdowns.
● Institutional adoption : Vague guidelines and fragmented enforcement efforts hinder the participation of risk-averse stakeholders, especially those businesses that require a clear legal framework. The lack of a unified global standard means that the development of DePIN may be limited by institutional hesitation and fragmented governance models.
The future of infrastructure
As the digital and physical worlds continue to merge, DePIN (Decentralized Physical Infrastructure Network) marks a fundamental shift in the way critical infrastructure is deployed and managed. Unlike the traditional model that relies on centralized entities, DePIN coordinates distributed participants to contribute, operate, and govern infrastructure.
By aligning global incentives through a tokenized system, DePIN lays the foundation for an open Internet based on resilience, inclusivity, and scalability . These networks are designed to meet the needs of an increasingly connected world, making infrastructure adaptable, transparent, and equitable. As physical infrastructure continues to incorporate digital intelligence and real-time coordination capabilities, DePIN provides a framework where infrastructure is not only shared, but also trusted, verifiable, and transparent at scale.
Fairness and inclusion
This transformation is not just technological, it’s also deeply societal. DePIN has the potential to empower underserved communities, improve disaster response, and expand access to basic services in ways that traditional infrastructure models cannot.
From Hivemapper’s community-driven mapping in rural Mississippi to World Mobile ’s deployment to quickly restore mobile communications services after Hurricane Helene , DePIN is demonstrating its value at the edge of traditional coverage. These cases show that user-owned infrastructure can respond faster, cover wider areas, and provide more equitable services than centralized alternatives.
As more regions adopt DePIN solutions, we are witnessing the rise of a new infrastructure paradigm - where access is no longer determined by geography or capital, but is driven by contribution and collaboration (Editor's note: PowerVerse deploys GPU server nodes in major cities in mainland China to provide high-performance and low-latency computing services ) .
The AI Era
As artificial intelligence and automation reshape the global economy, DePIN provides a necessary counterweight, ensuring that the physical infrastructure that underpins the AI era remains open and inclusive, rather than being monopolized by a handful of companies.
By aggregating hardware resources and rewarding participation, DePIN opens up new sources of supply while enabling users around the world to participate in the AI economy. This helps create a more level playing field for developers, researchers, and builders who lack access to traditional cloud infrastructure. More importantly, it promotes the democratization of AI development and makes it more in line with global values—model training, inference, and deployment can all be coordinated without permission.
Looking ahead
The future of DePIN will depend on continued improvements in technical design, user experience, and regulatory clarity. As the network continues to expand and integrate across different industries and services, DePIN is expected to become the default infrastructure layer for decentralized Internet and real-world applications.
In a world faced with growing infrastructure demands and a widening access divide, DePIN offers not only an alternative, but a superior model that decentralizes control, increases system resilience, and creates opportunities for participation at every level.
As awareness grows and interoperability between platforms increases, DePIN’s momentum will accelerate, ultimately leading to not just a new way to build infrastructure, but a new model for sharing benefits sustainably and inclusively on a global scale .
Read the full report:
https://www.tbstat.com/wp/uploads/2025/07/DePIN_Report_Final.pdf
