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How DePIN Reduces Reliance on Centralised Cloud Providers

Centralized cloud providers dominate today’s internet infrastructure, powering most applications and services we use daily. While these providers offer convenience and scalability, they also come with drawbacks—vendor lock-in, high costs, censorship risks, and single points of failure. DePIN (Decentralized Physical Infrastructure Networks) offers an alternative, using blockchain technology to create distributed networks that replace or supplement traditional cloud services. Companies like SubQuery are exploring ways to leverage DePIN for more secure, cost-efficient, and scalable solutions in Web3 infrastructure.

What is DePIN?

DePIN stands for Decentralized Physical Infrastructure Networks. In simple terms, DePIN projects incentivize individuals and businesses to contribute real-world resources—like compute power, storage, bandwidth, or sensors—to a shared network. These resources are coordinated and verified via blockchain, ensuring transparency, fairness, and resilience.

For those wondering “what is DePIN” in the context of blockchain development, it’s essentially the application of decentralized principles to the physical infrastructure layer of the internet. According to Forbes, DePIN is a revolutionary advancement, expanding blockchain applications from purely digital transactions to managing tangible, real-world assets.

The Problem with Centralised Cloud Providers

Centralized cloud services from giants like AWS, Google Cloud, and Azure have become integral to modern digital infrastructure. However, they introduce several issues:

Cost escalation: Pricing can quickly increase as usage scales.
Control & censorship: Providers can remove or block services based on policies or government requests.
Vendor lock-in: Migrating away is technically complex and costly.
Single points of failure: Outages at one provider can take down large sections of the web.

Table comparing DePIN and traditional infrastructure in terms of decentralization, cost, security and more.

How DePIN Reduces Cloud Dependence

1. Distributed Resource Provision

DePIN projects connect a global network of contributors offering computing, storage, and networking resources. Instead of relying on a single provider’s data centers, services are spread across many independent nodes—improving uptime and reducing dependency on centralized infrastructure.

2. Incentive-Driven Participation

Participants are rewarded, often in tokens, for contributing resources. This creates a self-sustaining ecosystem where supply grows with demand, without the monopolistic pricing of traditional cloud providers.

3. Greater Resilience

Because DePIN networks distribute workloads across many locations and operators, they’re naturally resistant to outages and censorship. Even if a few nodes go offline, the network continues functioning.

4. Integration with Blockchain Development

For developers building dApps and other blockchain projects, DePIN provides infrastructure that aligns with decentralization goals. Whether for data indexing, API hosting, or file storage, these networks reduce the mismatch between decentralized applications and centralized hosting.

Examples of DePIN Projects

Some notable DePIN initiatives include:

Filecoin – Decentralized storage network.
Helium – Wireless network for IoT devices.
Render Network – GPU compute marketplace for rendering tasks.

Visual illustrating DePIN use cases: Wireless Networks, Mapping, Compute & Rendering, and Decentralized Energy.

SubQuery as a DePIN Project

SubQuery began its journey as a DePIN business well before the term became one of Web3’s hottest narratives. Initially, the focus was on building and deploying a large-scale network foundation for its leading decentralized data indexer, now supporting almost 300 networks across the Web3 ecosystem.

While developing the SubQuery Network, the team built all the necessary components for a decentralized RPC network—reward mechanisms, service verification, and dispute resolution. This groundwork set the stage for the next step: expanding into full-fledged DePIN operations by actively building out RPC infrastructure.

Today, SubQuery’s node operators run both RPCs and other blockchain nodes, enabling secure and efficient communication across Web3. These decentralized RPCs remove the risks associated with centralized middleware and provide the reliability, transparency, and robustness needed for DApps. This positions SubQuery’s infrastructure as a key technological pillar in realizing the DePIN vision of blockchain-powered physical infrastructure.

Common Questions about DePIN

What is DePIN and how does it work?

DePIN (Decentralized Physical Infrastructure Networks) is a model where physical infrastructure, like storage or computing power, is decentralized and operated by a network of participants. Blockchain technology ensures secure transactions and incentivizes users with tokens for contributing their resources.

What is DePIN used for?

DePIN is used for decentralizing physical infrastructure such as data storage, internet connectivity, computing power, and even energy distribution. It enables users to share and monetize unused resources, creating more accessible, efficient, and secure networks.

What is a key benefit of DePIN?

A key benefit of DePIN is its cost-efficiency and security, as it decentralizes infrastructure, reducing reliance on centralized providers. It also offers new revenue opportunities for users and scales organically as more participants join the network.

TL;DR

DePIN shifts internet infrastructure from centralized cloud providers to distributed, blockchain-powered networks. By rewarding contributors for providing physical resources, DePIN projects reduce costs, increase resilience, and align infrastructure with the decentralization ethos of blockchain development. SubQuery exemplifies this model, delivering decentralized indexing and RPC services that support over 200 networks in the Web3 space.

Learn More

Want to explore how decentralized infrastructure is shaping the future of Web3? Visit SubQuery’s website to dive deeper into the technology and see how you can contribute to the growing DePIN ecosystem.

About SubQuery

SubQuery Network is innovating web3 infrastructure with tools that empower builders to decentralise without compromise. SubQuery’s infrastructure network offers both data indexers and RPCs — fully decentralised, production-ready, and designed for scale.

Our fast, flexible, and open data indexer supercharges thousands of dApps on nearly 300 networks. Through innovations like AI-assisted development via the SubQuery SDK and Model Context Protocol (MCP) integration, SubQuery is making it easier than ever to build, deploy, and maintain blockchain indexers. We’re not just a company — we’re a movement driving an inclusive and decentralised web3 era, together.