DePin Projects Gain Momentum on Solana Blockchain

.. By Nathan Daniels

April 26, 2024

2 min read

Reading Time: Read Time 2 minutes

Decentralized Physical Infrastructure (DePIN) projects are leveraging blockchain technology to empower users to take control of their data and incentivize the provision of services through physical infrastructure. One notable example of a DePIN project gaining traction on the Solana blockchain is Helium, a decentralized wireless network.

Helium’s Approach to Decentralized Wireless Network

Helium allows individuals and businesses to buy and install Helium-compatible gateways, similar to traditional WiFi hotspots, in their properties or commercial spaces. These gateways provide wireless coverage to the community, and those who host the gateways are rewarded with tokens. This incentivizes the expansion of the network while rewarding participants for their contributions.

Benefits of Decentralized Wireless Networks

According to Scott Sigel, COO of the Helium Foundation, traditional IoT network deployment has been costly and often led to bankruptcies among centralized providers. Helium’s decentralized approach enables the coordination of physical infrastructure through community involvement, significantly reducing costs and expanding network coverage.

Solana Blockchain’s Role

Helium chose to run its network on the Solana blockchain due to its high throughput and large developer ecosystem. Solana’s performance capabilities and user-friendly frontend align with Helium’s goals, making it a natural choice for their project. Additionally, the community voted in favor of Solana for its suitability.

Hivemapper: Reshaping the Mapping Industry

Another notable DePIN project on Solana is Hivemapper, aiming to revolutionize the mapping industry. By leveraging crypto tokens, Hivemapper aligns community incentives to collectively build and scale mapping infrastructure. This approach addresses the labor and capital-intensive nature of traditional mapping methods, lowering barriers to entry into the mapping market.

Crypto Tokens as Incentive Mechanism

Gabe Nelson, Head of Operations and Marketing at Hivemapper, highlights the unique role of crypto tokens in aligning incentives and bootstrapping community-driven projects. Crypto tokens offer a financial system that incentivizes collective action and facilitates the growth of decentralized infrastructure projects like Helium and Hivemapper.

In summary, DePIN projects like Helium and Hivemapper demonstrate the potential of blockchain technology to transform traditional industries by decentralizing infrastructure and aligning incentives through crypto tokens. With projects running on the Solana blockchain, the future of decentralized physical infrastructure looks promising.