DePIN, which stands for Decentralized Physical Infrastructure Network, is a new decentralized way of building physical services and infrastructure using blockchain.
Instead of being run by a single company, DePIN lets a community of people help operate the network. It’s a more open and shared model where users can contribute, own a part of it, and earn rewards.
In this blog, we’ll explore what DePIN means, how it solves the current problems in the mobility space, especially in the ride-hailing sector, and how it could benefit users.
TL;DR
- DePIN (Decentralized Physical Infrastructure Network) uses blockchain to make real-world infrastructure like ride-hailing more open, transparent, and community-owned.
- Today’s ride-hailing market faces major problems such as high commissions, limited driver control, and data opacity.
- DePIN solves these issues by offering better earnings for drivers, tamper-proof onchain records, and shared decision-making through community governance.
- Real-world limitations to DePIN adoption include varying user demographics, complex blockchain tools, and legal issues related to service licenses.
- A real-world example like TADA shows how a hybrid solution of Web2 and Web3 is already improving fairness and transparency in Southeast Asia’s ride-hailing sector.
What is DePIN?
DePIN stands for Decentralized Physical Infrastructure Network. It’s a system that uses blockchain to share ownership and value between the people who actually help build and run real-world services, instead of one company owning everything.
That might sound a little complex, so let’s break it down with an example.
💡 Imagine you and your friends start a lemonade stand business. But instead of having one friend act as the boss and take all the profit, everyone who helps, whether it’s bringing lemons, cups, or making signs, gets a fair share.
You also keep a notebook to track how many cups each person sells. Once something is written down, no one can erase or change it, so it’s easy to know who earned what.
That’s basically how DePIN works. But instead of a notebook, it uses blockchain, a secure and tamper-proof digital record, to keep track of everything.
In a traditional system, companies own the infrastructure and keep all the data to themselves. DePIN flips that idea, making data open, transparent, and verifiable.
People can contribute, earn, and trust that the system isn’t being controlled behind closed doors.
DePIN is now becoming one of the fastest-growing sectors in Web3, alongside RWA (Real World Assets) and AI.
A recent report from the World Economic Forum (WEF) predicted that the DePIN market could reach $3.5 trillion in market capitalization by 2030, with a huge 375% compound annual growth rate.
Why such big growth? Because DePIN offers a more efficient and fair way to build and maintain physical infrastructures than the current system such as:
- Power grids
- Mobile networks
- AI computing
- Cloud storage
- And mobility services like ride-hailing
Mobility is emerging as one of the promising use cases for DePIN. It has the potential to address key challenges in ride-hailing, such as unfair commissions, limited driver control, and lack of data transparency.
We’ll dive deeper into how this works in the next section.
Why the Current Ride-Hailing Model is Broken?
Ride-hailing platforms like Uber have changed how we move around cities. But while the apps are convenient, the system isn’t always fair for the people doing the driving and using the app.
Let’s take a closer look at some of the biggest problems in today’s ride-hailing industry.
1. High Commissions and Fares
Most ride-hailing platforms take a 20% to as high as 50% commission sometimes from each trip. That means if a rider pays $10 for a ride, the driver might only receive $7 or even less after fees and taxes.
At the same time, prices for riders have gone up over the years. Platforms often adjust fares using complex algorithms, surge pricing, or service fees without much explanation. Riders end up paying more, while drivers earn less.
This model is built to maximize profit for the platform, not for the people who actually make the service possible.
According to a Business Insider article that interviewed several drivers, while it’s difficult to calculate an exact average hourly rate, some drivers reported earning as little as $9 to $12 per hour. It’s before expenses like fuel, and maintenance, leaving them with less than minimum wage.
2. Driver Protests and Monopoly Power
In many countries, ride-hailing drivers have organized strikes and protests, demanding better working conditions and fairer pay. These protests often focus on one-sided decisions made by large platforms, such as unfair fare distribution and merger concerns, which ultimately strengthen monopoly power.
Because a few big companies control the market, drivers have very little bargaining power. They rely on the platform for their income, but they don’t have a say in how the platform is run.
This imbalance creates deep frustration and instability within the workforce. Since 2023, we’ve seen ongoing protests in regions including Indonesia, San Francisco, Nigeria and Hong Kong, highlighting that this problem exists across borders.
3. Data Opacity
One of the biggest issues is data opacity which means drivers and riders can’t see what’s really happening behind the scenes.
Drivers don’t know:
- How ride prices are calculated
- Why some drivers get more requests than others
- How their performance is measured
Riders don’t know:
- How their fare is split between the driver and the company
- If the price they pay is fair compared to others in the same area
Without access to clear and accurate data, it’s hard for either side to build trust. This lack of transparency makes the system feel rigged.
How DePIN Changes the Game?
DePIN brings a fresh approach to ride-hailing by focusing on fairness, transparency, and shared control. Instead of being controlled by one large company, the system is designed to benefit the people who actually use and power it.
Here are two key benefits for drivers and riders.
1. Better Revenue for Drivers
In most ride-hailing platforms today, companies take a large cut of every ride. This leaves drivers with less income, even though they do most of the work. With DePIN, that structure changes through peer-to-peer model.
DePIN removes the need for a centralized platform. This means drivers can receive almost the full amount paid by the rider. More money stays in the driver's pocket, and riders may also pay less because there is no big company charging service fees.
This model supports fairer earnings. It gives drivers a chance to build long-term income without losing a large share to commissions.
2. Immutable and Transparent Records
DePIN stores ride data on the blockchain. This kind of data storage is permanent and cannot be changed. It also allows anyone to check and verify the records.
For drivers, this means they can clearly see trip history, earnings, and how each fare was distributed. For riders, it provides confidence that they are being charged fairly.
There is no need to rely on hidden algorithms or unclear payment systems. Everything is recorded in a way that is open and easy to understand.
When both sides can see and trust the data, the ride-hailing experience becomes more reliable and secure. It also creates new opportunities for drivers who can use this onchain data to prove their work history or apply for new financial tools.
3. Community Governance
DePIN also introduces the idea of shared decision-making through community governance. In traditional platforms, decisions are made by executives or investors without input from the people who use the service every day.
With DePIN, drivers, riders, and other participants can have a say in how the platform evolves. For example, they might vote on rule changes, feature updates, or how rewards are distributed.
This creates a more democratic system where users feel a sense of ownership and responsibility. It also helps the platform stay aligned with the needs of its community, not just the goals of a private company.
In the next section, we will take a closer look at the real-world challenges of bringing blockchain into mobility and why the shift to decentralized systems is not always smooth.
Real-world Challenges to Adoption
DePIN brings exciting possibilities to the mobility world. But just like any new technology, it also faces real challenges. These roadblocks need to be addressed before ride-hailing can go fully decentralized.
Let’s take a closer look at some of the biggest hurdles DePIN must overcome.
1. Different Motivations of Users
Web3 users and ride-hailing users often have very different goals.
People who are active in Web3 tend to be tech-savvy. They are often interested in innovation, investing, and experimenting with new ideas.
On the other hand, most drivers and riders using ride-hailing apps are focused on something else entirely. Drivers want a stable way to earn money. Riders want a simple, fast, and reliable way to get where they need to go.
These users are not necessarily interested in decentralization. They usually care more about daily income, ease of use, and trust in the system. Convincing them to use a blockchain-based service can be difficult if it doesn’t feel as smooth or dependable as what they already know.
2. Blockchain UX is Still Too Complex
Even today, blockchain dApps can be confusing for people who are not familiar with them.
Most ride-hailing drivers have never used a crypto wallet. They may not understand how to pay gas fees or why a transaction needs to be confirmed before it goes through. For many, using blockchain adds extra steps that feel complicated and frustrating.
Drivers don’t want to wait for slow confirmations. They don’t want to deal with technical issues or worry about making a mistake that costs them money. The current user experience is still too hard for everyday users who just want to drive or catch a ride.
3. Legal and Licensing Challenges
Ride-hailing is not just a tech product. It is a public service that must follow local laws and regulations. Companies usually need government-approved licenses and they must follow strict safety rules.
A fully decentralized ride-hailing service may run into serious legal barriers. Without a company to apply for permits or take responsibility for operations, regulators might see the platform as unsafe or illegal.
Who is responsible if something goes wrong? Without a legal structure, it becomes harder to protect users and meet the standards required by each country or city.
4. Customer Support Expectations
In ride-hailing, customer support matters. Riders expect quick help if they leave a bag behind or get charged incorrectly. Drivers also need assistance when something goes wrong with the app or a trip.
In a traditional Web2 company, there is a support team ready to solve these problems. In a fully decentralized platform, there may not be anyone to call.
This creates a gap in user trust. People need to feel confident that someone will help them when issues come up. Without that safety net, many users may not feel comfortable switching to a decentralized service.
These challenges are not impossible to solve, but they require thoughtful design and a strong understanding of both the tech and the transportation industry.
That’s why a hybrid solution combining Web2 infrastructure with Web3 principles is well-suited for the ride-hailing sector.
Successful Use Case of DePIN
A strong example of successful DePIN model is TADA, a part of the MVL mobility ecosystem.
TADA shows how blockchain can improve fairness, transparency, and trust in the ride-hailing sector.
TADA: A Web2 App with DePIN Principles
TADA is a ride-hailing service launched in 2018, which stands out for its zero-commission model using a DePIN principle.
Unlike other platforms that take a large cut from each fare, TADA allows drivers to keep more earnings in their pockets. This makes it much more appealing to people who drive full-time or rely on ride-hailing for daily income.
What makes TADA even more unique is how it blends familiar Web2 experiences with the fairness of DePIN network. The app is simple to use and looks just like any other ride-hailing platform. Riders book a trip, and drivers accept rides, without needing to deal with blockchain tools.
However, behind the scenes, TADA regularly stores trip data on MVL mainnet such as fare distribution, drivers earning and mobility patterns. On MVL DePIN website, anyone can see this mobility network data openly and transparently, eventually building trust in the system.
By keeping the interface easy and using blockchain in the background, TADA uses hybrid approach combining traditional infrastructure with decentralized components. It gives users a smooth experience while using Web3 principles to make the platform fairer and more trustworthy.
Thanks to this approach, TADA quickly gained traction in various markets and now successfully operates its services across five Southeast Asian countries, including Singapore, Thailand, Vietnam, Cambodia, and Hong Kong. Most recently, TADA partnered with the Drivers Cooperative Colorado (DCC) to provide its SaaS system to DCC’s COOP Rideshare, bringing its unique platform principles to the U.S. market.
As we move forward, the next big step is understanding how DePIN connects with Real World Asset (RWA) tokenization. This intersection has the potential to reshape global finance, mobility, and access to opportunity.
We’ll explore how DePIN and RWA come together in our next blog.
DePIN, which stands for Decentralized Physical Infrastructure Network, is a new decentralized way of building physical services and infrastructure using blockchain.
Instead of being run by a single company, DePIN lets a community of people help operate the network. It’s a more open and shared model where users can contribute, own a part of it, and earn rewards.
In this blog, we’ll explore what DePIN means, how it solves the current problems in the mobility space, especially in the ride-hailing sector, and how it could benefit users.
TL;DR
What is DePIN?
DePIN stands for Decentralized Physical Infrastructure Network. It’s a system that uses blockchain to share ownership and value between the people who actually help build and run real-world services, instead of one company owning everything.
That might sound a little complex, so let’s break it down with an example.
In a traditional system, companies own the infrastructure and keep all the data to themselves. DePIN flips that idea, making data open, transparent, and verifiable.
People can contribute, earn, and trust that the system isn’t being controlled behind closed doors.
DePIN is now becoming one of the fastest-growing sectors in Web3, alongside RWA (Real World Assets) and AI.
A recent report from the World Economic Forum (WEF) predicted that the DePIN market could reach $3.5 trillion in market capitalization by 2030, with a huge 375% compound annual growth rate.
Why such big growth? Because DePIN offers a more efficient and fair way to build and maintain physical infrastructures than the current system such as:
Mobility is emerging as one of the promising use cases for DePIN. It has the potential to address key challenges in ride-hailing, such as unfair commissions, limited driver control, and lack of data transparency.
We’ll dive deeper into how this works in the next section.
Why the Current Ride-Hailing Model is Broken?
Ride-hailing platforms like Uber have changed how we move around cities. But while the apps are convenient, the system isn’t always fair for the people doing the driving and using the app.
Let’s take a closer look at some of the biggest problems in today’s ride-hailing industry.
1. High Commissions and Fares
Most ride-hailing platforms take a 20% to as high as 50% commission sometimes from each trip. That means if a rider pays $10 for a ride, the driver might only receive $7 or even less after fees and taxes.
At the same time, prices for riders have gone up over the years. Platforms often adjust fares using complex algorithms, surge pricing, or service fees without much explanation. Riders end up paying more, while drivers earn less.
This model is built to maximize profit for the platform, not for the people who actually make the service possible.
According to a Business Insider article that interviewed several drivers, while it’s difficult to calculate an exact average hourly rate, some drivers reported earning as little as $9 to $12 per hour. It’s before expenses like fuel, and maintenance, leaving them with less than minimum wage.
2. Driver Protests and Monopoly Power
In many countries, ride-hailing drivers have organized strikes and protests, demanding better working conditions and fairer pay. These protests often focus on one-sided decisions made by large platforms, such as unfair fare distribution and merger concerns, which ultimately strengthen monopoly power.
Because a few big companies control the market, drivers have very little bargaining power. They rely on the platform for their income, but they don’t have a say in how the platform is run.
This imbalance creates deep frustration and instability within the workforce. Since 2023, we’ve seen ongoing protests in regions including Indonesia, San Francisco, Nigeria and Hong Kong, highlighting that this problem exists across borders.
3. Data Opacity
One of the biggest issues is data opacity which means drivers and riders can’t see what’s really happening behind the scenes.
Drivers don’t know:
Riders don’t know:
Without access to clear and accurate data, it’s hard for either side to build trust. This lack of transparency makes the system feel rigged.
How DePIN Changes the Game?
DePIN brings a fresh approach to ride-hailing by focusing on fairness, transparency, and shared control. Instead of being controlled by one large company, the system is designed to benefit the people who actually use and power it.
Here are two key benefits for drivers and riders.
1. Better Revenue for Drivers
In most ride-hailing platforms today, companies take a large cut of every ride. This leaves drivers with less income, even though they do most of the work. With DePIN, that structure changes through peer-to-peer model.
DePIN removes the need for a centralized platform. This means drivers can receive almost the full amount paid by the rider. More money stays in the driver's pocket, and riders may also pay less because there is no big company charging service fees.
This model supports fairer earnings. It gives drivers a chance to build long-term income without losing a large share to commissions.
2. Immutable and Transparent Records
DePIN stores ride data on the blockchain. This kind of data storage is permanent and cannot be changed. It also allows anyone to check and verify the records.
For drivers, this means they can clearly see trip history, earnings, and how each fare was distributed. For riders, it provides confidence that they are being charged fairly.
There is no need to rely on hidden algorithms or unclear payment systems. Everything is recorded in a way that is open and easy to understand.
When both sides can see and trust the data, the ride-hailing experience becomes more reliable and secure. It also creates new opportunities for drivers who can use this onchain data to prove their work history or apply for new financial tools.
3. Community Governance
DePIN also introduces the idea of shared decision-making through community governance. In traditional platforms, decisions are made by executives or investors without input from the people who use the service every day.
With DePIN, drivers, riders, and other participants can have a say in how the platform evolves. For example, they might vote on rule changes, feature updates, or how rewards are distributed.
This creates a more democratic system where users feel a sense of ownership and responsibility. It also helps the platform stay aligned with the needs of its community, not just the goals of a private company.
In the next section, we will take a closer look at the real-world challenges of bringing blockchain into mobility and why the shift to decentralized systems is not always smooth.
Real-world Challenges to Adoption
DePIN brings exciting possibilities to the mobility world. But just like any new technology, it also faces real challenges. These roadblocks need to be addressed before ride-hailing can go fully decentralized.
Let’s take a closer look at some of the biggest hurdles DePIN must overcome.
1. Different Motivations of Users
Web3 users and ride-hailing users often have very different goals.
People who are active in Web3 tend to be tech-savvy. They are often interested in innovation, investing, and experimenting with new ideas.
On the other hand, most drivers and riders using ride-hailing apps are focused on something else entirely. Drivers want a stable way to earn money. Riders want a simple, fast, and reliable way to get where they need to go.
These users are not necessarily interested in decentralization. They usually care more about daily income, ease of use, and trust in the system. Convincing them to use a blockchain-based service can be difficult if it doesn’t feel as smooth or dependable as what they already know.
2. Blockchain UX is Still Too Complex
Even today, blockchain dApps can be confusing for people who are not familiar with them.
Most ride-hailing drivers have never used a crypto wallet. They may not understand how to pay gas fees or why a transaction needs to be confirmed before it goes through. For many, using blockchain adds extra steps that feel complicated and frustrating.
Drivers don’t want to wait for slow confirmations. They don’t want to deal with technical issues or worry about making a mistake that costs them money. The current user experience is still too hard for everyday users who just want to drive or catch a ride.
3. Legal and Licensing Challenges
Ride-hailing is not just a tech product. It is a public service that must follow local laws and regulations. Companies usually need government-approved licenses and they must follow strict safety rules.
A fully decentralized ride-hailing service may run into serious legal barriers. Without a company to apply for permits or take responsibility for operations, regulators might see the platform as unsafe or illegal.
Who is responsible if something goes wrong? Without a legal structure, it becomes harder to protect users and meet the standards required by each country or city.
4. Customer Support Expectations
In ride-hailing, customer support matters. Riders expect quick help if they leave a bag behind or get charged incorrectly. Drivers also need assistance when something goes wrong with the app or a trip.
In a traditional Web2 company, there is a support team ready to solve these problems. In a fully decentralized platform, there may not be anyone to call.
This creates a gap in user trust. People need to feel confident that someone will help them when issues come up. Without that safety net, many users may not feel comfortable switching to a decentralized service.
These challenges are not impossible to solve, but they require thoughtful design and a strong understanding of both the tech and the transportation industry.
That’s why a hybrid solution combining Web2 infrastructure with Web3 principles is well-suited for the ride-hailing sector.
Successful Use Case of DePIN
A strong example of successful DePIN model is TADA, a part of the MVL mobility ecosystem.
TADA shows how blockchain can improve fairness, transparency, and trust in the ride-hailing sector.
TADA: A Web2 App with DePIN Principles
TADA is a ride-hailing service launched in 2018, which stands out for its zero-commission model using a DePIN principle.
Unlike other platforms that take a large cut from each fare, TADA allows drivers to keep more earnings in their pockets. This makes it much more appealing to people who drive full-time or rely on ride-hailing for daily income.
What makes TADA even more unique is how it blends familiar Web2 experiences with the fairness of DePIN network. The app is simple to use and looks just like any other ride-hailing platform. Riders book a trip, and drivers accept rides, without needing to deal with blockchain tools.
However, behind the scenes, TADA regularly stores trip data on MVL mainnet such as fare distribution, drivers earning and mobility patterns. On MVL DePIN website, anyone can see this mobility network data openly and transparently, eventually building trust in the system.
By keeping the interface easy and using blockchain in the background, TADA uses hybrid approach combining traditional infrastructure with decentralized components. It gives users a smooth experience while using Web3 principles to make the platform fairer and more trustworthy.
Thanks to this approach, TADA quickly gained traction in various markets and now successfully operates its services across five Southeast Asian countries, including Singapore, Thailand, Vietnam, Cambodia, and Hong Kong. Most recently, TADA partnered with the Drivers Cooperative Colorado (DCC) to provide its SaaS system to DCC’s COOP Rideshare, bringing its unique platform principles to the U.S. market.
As we move forward, the next big step is understanding how DePIN connects with Real World Asset (RWA) tokenization. This intersection has the potential to reshape global finance, mobility, and access to opportunity.
We’ll explore how DePIN and RWA come together in our next blog.