For a subset of devout crypto users, decentralization is a purity test. To pass it, you must solemnly pledge to shun AWS and route all traffic through at least 32 globally distributed nodes. Decentralize or die, they insist.
But what if I were to tell you that the very pursuit of decentralization for decentralization’s sake is in itself a fast track to obsolescence? That it’s possible to enjoy the many unique properties of web3 without sweating over the occasional dirty dalliance with centralized infra?
It may sound radical. Heretical even. But there’s a compelling case for saying that the industry’s obsession with degrees of decentralization isn’t just unhealthy – it’s unworkable. As a case in point, consider the DePIN sector, where the intersection of legacy systems and Web3 of centralized and decentralized infra is most starkly illustrated. It turns out that most projects fail the purity test. But – spoiler alert – it also transpires that this does little to impair DePIN’s value proposition. Here’s why.
How Decentralized Is DePIN?
There’s a lot of buzz surrounding Decentralized Physical Infrastructure Networks, or DePINs, which bridge Web3 ideals with real-world utilities. Yet for all the promise DePIN brings—and it’s now a multi-billion dollar sector populated by hundreds of projects—it’s questionable just how “De” it truly is. Despite championing a decentralized ethos, the vast majority of these projects plug into legacy data centers, corporate-owned servers, or existing telecommunications grids.
The critics are right to question the extent to which most of these projects are fully decentralized. But they’re wrong to take potshots purely on account of this. Because intersection with centralized systems is a feature, not a bug. It’s literally the whole point of DePIN: bridging the old with the new to create a hybrid system that leverages the advantages of both worlds.
DePIN market cap as of Jan.16, 2025. Source: DePIN Scan
No Black and White, Just Gray
Life would be simple if we could envisage everything in binary terms. Black. White. Up. Down. But it’s rarely that clear-cut, particularly when it comes to decentralization which exists on a spectrum. Take crypto-powered DePINs that still run critical workloads on AWS. Or look at mesh networks that sync data across nodes but rely on telecom giants for bandwidth.
These examples remind us that in the real world, “decentralized” often involves compromise. Just as a chef may grow fresh ingredients but still keep a bag of peas in the freezer, a DePIN operator might run decentralized protocols while using established hosting or connectivity providers for convenience. There’s nothing wrong with doing so – provided you’re honest about it. If your project needs centralized infra to operate optimally, acknowledge it. Centralization is forgivable; hypocrisy is not.
What’s the Point of DePIN?
So, if DePIN isn’t particularly decentralized in many cases, what’s the point of the industry? Isn’t it all just smoke and mirrors, then, sleight-of-hand masquerading as cutting-edge technology? Not so. To assume that DePIN was designed to topple centralized infrastructure is to miss the point. DePIN isn’t a cloud killer: it’s an infra enhancer. By introducing token-based incentives, robust cryptographic security, and communities that collectively govern, the DePIN model can help traditional networks flourish.
We’ve seen this happen before, not least with the internet itself, which started out as a smattering of government-funded networks and research labs. Over time, private entities built on top of that “centralized” backbone, weaving in commercial components and protocols to create the vibrant digital landscape we know today. The internet didn’t demolish legacy systems; it improved and integrated them before eventually revolutionizing how we transact and interact. Similarly, DePIN is designed to build on and improve established infrastructure, whether that’s telecom towers, data centers, or server architectures.
Building infrastructure purely from scratch isn’t just inefficient: it’s often impossible. The key isn’t whether a DePIN uses centralized components but how it transforms them to be more secure, scalable, and community-driven.
What DePIN Does Better
DePIN is great. But it’s not the “new paradigm” its more vociferous proponents would make it out to be. It’s an upgrade, not a rebuild. And it’s already enhancing the quality of service – and quality of life – for digital citizens worldwide.
Decentralized wireless networks are paying people for hosting small cell stations in their homes, expanding coverage while redistributing revenue from telecom services. Decentralized storage networks are empowering participants to rent out unused hard drive space. And guess what? None of these individuals is losing sleep over what’s under the hood. They’re too busy reaping the benefits from the enhancements that DePIN has fostered.
Know Your History
History is full of solutions that used existing systems as springboards. Think about hybrid cars that took traditional gasoline engines and added electric motors for improved efficiency and lower emissions, instead of discarding every piece of tech; the air-con, lights, transmission, and sensors were already working just fine. Cloud computing did the same with on-premises data centers; Amazon, Microsoft, and Google simply repackaged and refined them into more efficient, globally accessible services.
It’s the same story with DePIN today, where some projects adopt a hybrid approach by combining decentralized storage solutions with conventional cloud providers to achieve redundancy and speed. This approach can provide enterprise customers with dependable fallback options while facilitating a smoother transition into Web3 for those exploring the benefits of decentralized infrastructure.
Learn to Coexist
Decentralized infrastructure doesn’t have to rewrite the entire script in a single act. Instead, DePIN can function as a series of specialized upgrades bolted onto the legacy core, creating networks that are more resilient, transparent, and accessible. As telecom titans, data center operators, and Web3 startups continue to collaborate, a network of networks will emerge: part old, part new, each piece dependent upon the others.
That’s where DePIN’s true promise lies: it doesn’t need to obliterate the infrastructure we have today. It only needs to improve it, layer by layer, step by step. And if history is any guide, this blend of evolution and revolution is precisely how transformative technology takes root. The path to a more democratic, secure, and scalable infrastructure will be built on collaboration, not destruction. Decentralization purists be damned.
The post DePIN Doesn’t Have to Be Fully Decentralized to Work appeared first on Cryptonews.
