USE CASES | From Ride-Sharing to Sharing WiFi Hotspots – A look At Decentralized Physical Infrastructure Networks in Africa
In DePIN networks, individuals engage by utilizing either their personal hardware or specialized hardware tailored for the network. This can encompass a variety of devices, spanning from hard drives and wireless network nodes to in-car tracking devices. Below, we take a look at some examples of DePIN solutions in Africa.
DePIN, an abbreviation for ‘decentralized physical infrastructure networks,’ is gaining traction as a widely embraced use case for blockchain and decentralized technologies.
This use case entails using blockchain to run and maintain decentralized networks of physical hardware such as sensors, wireless infrastructure, energy grids, and other applications.
Through the strategic use of cryptocurrency tokenomics and blockchain technology, DePIN incentivizes and orchestrates the operation of peer-to-peer (P2P) hardware infrastructure networks. This innovative approach is already actively employed to kickstart and sustain tangible real-world services across the continent.
How DePIN Works
DePIN employs cryptocurrency rewards as incentives for individuals to engage in physical infrastructure networks allowing them to develop organically from the grassroots level rather than being dictated from a centralized authority.
Historically, the establishment and operation of physical infrastructure networks have been costly and complex endeavors, typically undertaken by well-established corporations or governments possessing ample financial resources.
In DePIN networks, individuals engage by utilizing either their personal hardware or specialized hardware tailored for the network. This can encompass a variety of devices, spanning from hard drives and wireless network nodes to in-car tracking devices.
Below, we take a look at some examples of DePIN solutions in Africa.
Kwik Pik (Nigeria)
The Kwik Pik app functions as a Delivery-as-a-Service (DaaS) DePIN, linking local drivers with individuals who require package delivery services. This addresses the challenge of fragmented delivery systems across the continent, thereby improving the efficiency and reliability of the traditional process of sending items.
“Imagine building roads, not with government contracts, but with token rewards and a network of independent builders, and all of their activities are recorded on the blockchain,” Kwik Pik says.
“In the case of Kwik Pik, we are a delivery as a service DePIN building a decentralized ride-sharing network fueled by token rewards for drivers and riders, all recorded on Hedera DLT.”
🇳🇬INTRODUCING | [WATCH] How Nigeria’s Kwik Pik Leverages Hedera Network to Record Data for Their Delivery Business 🇳🇬
Leveraging the #Hedera network and Google Maps, Kwik Pik logs all driver journeys as immutable records on the Hedera Consensus Service (HCS) to help ensure both… pic.twitter.com/fed0bMxgWx
Again, we see that according to WiCrypt, a decentralized physical infrastructure network (DePIN) refers to a network of physical devices or resources distributed across various locations and operated in a decentralized manner.
WiCrypt allows anyone to provide WiFi through the custom-built WiCrypt Hotspot Creator device. WiCrypt hosts are paid by those accessing WiFi, while also being incentivized by WiCrypt through its native token, $WNT, for having high device up-time.
WiCrypt launched in Africa in 2018 as the first peer-to-peer mobile internet-sharing network on the continent, before signing an exclusive partnership with the Government of Enugu State, Nigeria, to provide internet service to its citizens. The company was bootstrapped by its founder before becoming profitable in 2020.
Outside of Africa, some of the interesting DePIN innovations include:
Arweave: A decentralized file storage service that lets users share their computer disk space with others in need of storage capacity
Render: A decentralized GPU rendering platform where users can contribute the unused power of their PC graphics cards to render motion graphics and visual effects
Helium: A decentralized wireless Internet of Things (IoT) network which utilizes a distributed network of hotspots that receive rewards for offering wireless coverage
One of the pioneer DePINs is InterPlanetary File System (IPFS). IPFS allows users to access and share files in a peer-to-peer manner where files are identified by unique hash addresses. IPFS aims to improve upon the traditional client-server model by distributing content across a network of nodes making it more resistant to censorship and downtime.
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