Can DePINs offer a ‘lower barrier to entry’ than stablecoins?

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It’s been a while since we last talked about DePINs. Blockworks Research analyst Nick Carpinito is giving us the perfect excuse to dig back in after publishing a note that not only focuses on DePINs, but specifically looks at tokenized power plants. And, yes, it’s much more exciting than it initially seems.

Carpinito told me that he felt compelled to dig into the subject because of artificial intelligence.

“One of the critical pieces of AI today is that you’re seeing that the sector as a whole, outside of the decentralized piece, is having some serious energy constraints, especially outside the US, but even in the US,” he explained. So he did a deep dive to see just how viable it is.

The long and short of it is that “projects that credibly tie infrastructure performance to real-world revenue, navigate policy fragmentation, and maintain network quality will be well-positioned to shape the next generation of energy markets.”

But if this is the first time you’re hearing about these types of dePINs, you’re not alone. I asked Carpinito about that, and he explained that wireless tends to be one of the most popular subsectors within DePIN — something that does track with what we’ve previously covered in Empire.

There’s been “very little innovation in the energy space,” he said. It’ll take time to see “meaningful scale,” but Carpinito isn’t too worried about that.

In fact, his hot take is that some projects could start operating as “pieces in the grid” in the coming year.

The theory I’ve been working on is the successful use case of DePINs. RWAs and stablecoins have seen great success, and DePINs follow a bit of a similar model. You take a non-crypto industry and put it on crypto rails, not only to improve it, but to open doors for non-crypto folks to come onchain. Sounds like it matches the recipe for success we’ve seen, yeah?

Admittedly, reality is slightly more complicated.

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