01-30, 12:50–13:10 (Europe/Zurich), Beacon Stage
Decentralized physical infrastructure networks (DePINs) are an emerging vertical within "Web3" replacing the traditional method that physical infrastructures are constructed. Yet, the boundaries between DePIN and traditional method of building crowd-sourced infrastructures such as citizen science initiatives or other Web3 verticals are not always so clear cut. In this work, we systematically analyze the differences between DePIN and other Web2 and Web3 verticals. For this, the study proposes a novel decision tree for classifying systems as DePIN. This tree is informed by prior studies and differentiates DePIN from related concepts using criteria such as the presence of a three-sided market, token-based incentives for supply, and the requirement for physical asset placement in those systems.
The paper demonstrates the application of the decision tree to various blockchain systems, including Helium and Bitcoin, showcasing its practical utility in differentiating DePIN systems.
This research offers significant contributions towards establishing a more objective and systematic approach to identifying and categorizing DePIN systems. It lays the groundwork for creating a comprehensive and unbiased database of DePIN systems, which will inform future research and development within this emerging sector.
Mark C. Ballandies has a background in high-performance computing and holds a PhD in cryptoeconomics from ETH Zurich, titled “Fundamentals of Cryptoeconomics: On the design, construction, and impact of blockchain-based systems and incentives.”
His research focuses on designing blockchain-based cryptoeconomic incentives and understanding their impact on human behavior, employing experimental methods, network science, data science, and agent-based modeling. Currently, at the University of Zurich, he explores decentralized autonomous organizations (DAOs) and decentralized physical infrastructure networks (DePIN), aiming to enable their efficient adaptation to changing conditions.
Mark is passionate about leveraging decentralized, community-owned solutions for complex challenges. He actively pursues this vision through WiHi, a DePIN initiative enhancing weather and climate intelligence using web3 technologies. He co-founded onocoy, a DePIN for the GNSS industry, and DAOSuisse, an association for DAOs in Switzerland. Additionally, he leads Trusts Square's DePIN community, lectures at Vorarlberg University of Applied Sciences, is an alumnus of the Foundation of German Business, and serves as the president of Education Matters e.V.