What is DePIN mining?
Decentralized physical infrastructure network mining, otherwise known as DePIN mining, requires the use of computational power, network bandwidth, or other physical infrastructure to support a decentralized network. In centralized networks, security and capacity are managed by one controlling entity, but DePIN mining allows anyone to earn rewards for providing a decentralized network with services.
Learn more about the basics of DePIN mining and how it works.
How did DePIN mining start?
As the first cryptocurrency, Bitcoin required miners to use their processing power to secure the Bitcoin network and earn a reward for doing so. Bitcoin began a cryptocurrency revolution from which arose a wide variety of use cases, some of which allowed for the decentralization of physical infrastructure networks like file storage, compute power, and more.
File sharing networks like Storj created new ways for users to secure their data, and miners to offer their storage capacity in return for compensation. Next came Helium, a decentralized wireless network where anyone could provide the network with coverage and data transmission. Helium miners quickly took off and became popular in the DePIN mining space.
How big is the DePIN mining industry today?
At first, many DePIN networks were in their testnet phases and not fully operational. But over time, with networks like Helium, Storj, Arweave, and Livepeer, the industry has grown significantly. Today, the DePIN industry has an estimated 650 projects with a total market capitalization of $35 billion. It’s estimated that by 2028, the industry will grow to a size of $3.5 trillion.
Why run a DePIN miner?
Running a DePIN miner has several benefits:**
- Rewards: Miners are rewarded for lending out their physical infrastructure. Rewards are paid out in the native cryptocurrency of whichever blockchain the miner is running. - Support decentralized networks: If we want a world where data security and censorship resistance are core values, we need miners to provide their resources in support of decentralized networks where no one is in control. - Join new communities: As a miner, you are immediately at the center of the blockchain community. This gives you the opportunity to network and learn from other operators and participate in the growth of the network.
What are some challenges with DePIN mining?
The main challenges that miners face is the ability to turn a profit given the costs associated with mining. For some networks, there may be a large upfront cost for hardware equipment along with recurring costs for electricity and even space to house equipment for larger mining operations. Therefore, the miners that find ways to operate efficiently will stand the test of time and profit in the long run.
Additionally, some DePIN networks require specialized hardware to mine. This means that you could be required to purchase additional hardware to mine certain blockchain networks, which comes at an additional cost. Plus, if a blockchain network becomes unprofitable to mine over time, the purchase of specialized hardware equipment becomes useless, and likely cannot be used to mine another network.
Enter Hivello, a software that will turn any PC or Laptop into a mining rig
Hivello has introduced a new way to mine DePIN networks that doesn’t require high upfront hardware costs and turns any computer into a mining rig. Hivello is now available in Closed Beta for Windows 10 & Windows 11 devices (Mac/Linux/Raspberry Pi coming soon!). Getting started takes three easy steps:
Step 1: Download the Hivello app
Step 2: Install the app on your desktop
Step 3: Choose a blockchain network and start earning rewards
Hivello allows you to mine the most popular DePIN networks, like Mysterium, Livepeer, and more with no experience or technical knowledge necessary. Using Hivello’s simple, easy setup process, anyone can take their existing laptop or PC and utilize its resources for DePIN mining. Plus, Hivello allows you to switch between blockchain networks whenever you’d like, and mine the network that can generate you the most rewards.
Try Hivello today and turn your existing device into a powerful DePIN miner.
