Do most DePIN projects really make use of blockchain technology?

The DePIN projects in the crypto world are a hot topic right now, but the question remains: do these projects actually heavily rely on blockchain networks? Projects like Helium, which connect wireless networks, have fostered discussions in the industry about the usage of blockchain in such projects. The issue arises due to the massive amounts of data produced by these networks, which require high-throughput chains to connect via blockchain network. Some projects, like MegaETH, aim to process 100,000 transactions per second, which may be sufficient for certain DePIN projects.

However, not all DePIN use cases are fully onchain, according to Shuyao Kong of MegaETH. Instead, a hybrid structure is often employed by projects, combining offchain computation with onchain recording of results. This approach is more efficient and cost-effective for DePIN applications currently. Even Solana, known for its speed, may fall short for projects needing real-time computational capabilities.

Zhe Wang of DEPHY network categorizes IoT into sensors and executors, with the former collecting data and the latter acting on commands. Offchain computation is often a better solution for both sensor and executor data, as transferring data onchain can be costly and inefficient. Despite this, blockchain plays a pivotal role in coordinating the activities of thousands of devices in a permissionless way for DePIN projects.

Projects like Theta EdgeCloud offer economic incentives through tokens for contributors who share their resources. These contributors can earn tokens by providing computing power, creating a more sustainable system for DePIN projects. Overall, blockchain technology adds a financial incentive layer to participation in decentralized infrastructure, allowing for a more efficient and secure network of devices.