The First DePIN on Kadena: Creating a Scalable DePIN Application with Crankk

DePIN has been making headway into the headlines of Web3, from Blockworks to Bankless and everything in between. Thanks to Crankk, which enables the integration of real-world events into smart contracts and blockchain, DePIN continues to thrive on Kadena, adding to the momentum from Cyberfly.

What’s Behind DePIN/IoT’s Popularity?

DePIN, or Decentralized Physical Infrastructure Network, is a broad term encompassing various physical items with a digital element, such as big data warehouses, wireless networks, energy, and communication systems. VanEck forecasts a mobile bandwidth market alone with revenue of $5.4B+, and that is with just one DePIN sub-sector.

However, when you zoom out to understand the DePIN market’s size, there are strong signs of a thriving niche carved out of blockchain reminiscent of the excitement around NFTs and DeFi. DePIN spring, anyone?

According to Messari, the combined market cap of DePINs tokens exceeded $20 billion, generating ~$15 million in annualized on-chain revenue.

Furthermore, as of January 2024, Messari has reported that the DePIN ecosystem has grown to over 650 projects across 6 robust subsectors:

1. Computing (250)
2. AI (200)
3. Wireless (100)
4. Sensors (50)
5. Energy (50)
6. Services (25)

Furthermore, Messari forecasts that the DePIN ecosystem could have a market cap of $3.5 trillion by 2028 and over $10 trillion in the next decade! In other words, the potential could upend Big Tech infrastructure as we know it today, eliminating the intermediaries and giving more power to individuals!

And thanks to Crankk, Kadena can show the true potential of DePIN through our truly scalable blockchain with the lowest fees that are affordable for everyone. Crankk integrates all physical infrastructure, from smart meters to GPS trackers, onto the Kadena blockchain through Pact smart contracts, thus making it a reality for Pact smart contracts to learn about and react to real-world events.

Before jumping into DePIN examples, there are a few words that you should at least be familiar with:

1. The Internet of Things (IoT): As the name implies, IoT is when ordinary objects, like cars, energy meters, and agriculture gauges, integrate with the Internet through sensors and software to become “smart devices.” It is a larger trend in which data from these ordinary objects becomes more widely available;
2. Proof of Physical Work (PoPW): This is what some (Multicoin Capital as one example) referred to as DePIN before it was called DePIN. PoPW systems incentivize people to build real-world infrastructure through crypto-economic incentives. PoPW systems are typically permissionless, hyper-local, and cost-efficient;
3. LoRaWAN network: The LoRaWAN® specification is designed to connect 'things' like sensors and devices to the internet over long distances without using much power. It's great for setting up things like smart city sensors or tracking devices that run on batteries and need to send and receive data over wide areas, whether in a big city or across the country. This network is specially made for the Internet of Things, ensuring that devices can talk back and forth securely, move around easily, and even figure out their location.

DePIN has been catching a buzz lately, but the early foundations of the word have been kindling in conversation long before the word DePIN started to be thrown around like a frisbee at a beach picnic. However, now that blockchain technology is becoming advanced enough to run DePIN systems on-chain, the dream of bringing physical infrastructure on-chain is becoming less of a lofty Sci-Fi dream and more of a reality.

Early examples of DePIN:

1. Department of Defense (DOD): Since 2017, the United States DOD has viewed blockchain technology with piqued interest as a potential solution to its supply chain problems and energy efficiency optimization (The Emerging Impacts of Blockchain Technology on DOD Asset Cyber Security by Mr. Daryl Woodfield, DAF).
2. Helium IoT Network: As a pioneering DePIN project, Helium created a peer-to-peer hotspot network. On Helium, IoT devices can access a long range of public wireless coverage without going through Big tech intermediaries.
3. Filecoin Distributed File Storage: As a Web3 alternative to Google and Amazon Web Services, Filecoin’s distributed file storage service delivers a way to store data using crypto-economic incentives. It is a marketplace for those who need storage to buy it from those with extra storage available on their hard drives.

What is Crankk?

Crankk is a decentralized network built on the Kadena blockchain, specifically designed for the Internet of Things. It utilizes low-power Wide-Area Network (LPWAN) technology, particularly LoRaWAN (Long-Range Wide-Area Network), to connect battery-operated devices ("things") to the internet over wide geographical areas with minimal power consumption.

Crankk's Proof of Network Participation (PoNP)

Crankk's Proof of Network Participation is a system designed to validate the participation and contribution of network nodes in providing participation for the LoRaWAN network, which is essential for IoT devices like smart meters and GPS trackers. This system is integral to the decentralized nature of the Crankk network, ensuring that all participating nodes actively contribute to the network's infrastructure.

How does an individual or company become a node operator in the Crankk network?

To become a node operator in the Crankk network, an individual or company must follow these general steps based on common procedures for joining decentralized networks like Crankk:

Assemble

1. Hardware Setup: Acquire the necessary hardware, which typically includes a Raspberry Pi and a LoRaWAN gateway module. The Crankk network utilizes these components to connect to the LoRaWAN network and the Kadena blockchain.

2. Software Installation: Download and install Crankk OS onto the Raspberry Pi. This software allows the node to communicate with the LoRaWAN network for IoT devices and interact with the Kadena blockchain.

3. Configuration: Set up and configure the LoRaWAN gateway according to the Crankk network's guidelines. This may involve configuring network settings, connecting to the internet, and ensuring proper security measures.

Connect

4. Blockchain Connection: Integrate your node with the Kadena blockchain by connecting it to the Crankk network through the Crankk Local Dashboard. This step is crucial for participating in the Proof of Network Participation system and earning rewards.

5. Registration: Complete any necessary registration steps required by the Crankk platform, which may include providing details about your node's location and capabilities.

Earn

6. Start Operating: Once your node is set up and registered, start operating it to contribute to the Crankk network's PoNP. Ensure your node remains online and functional to support the network and earn Crankk tokens continuously.

7. Maintain Your Node: Regular maintenance and monitoring of your node will ensure it continues to operate effectively and securely within the Crankk network. Keep your software up to date and promptly address any issues that arise.

By following these steps, an individual or company can become a node operator within the Crankk network, contributing to LoRaWAN participation and earning rewards through Crankk tokens. Note that details may vary, so it's essential to refer to the official Crankk documentation and resources for the most accurate and detailed instructions.

Why Build Crankk on Kadena?

The decision to build Crankk on Kadena stems from several key advantages offered by Kadena's blockchain technology:

1. Speed and Scalability: Kadena's blockchain offers high throughput and scalability, essential for handling the data and transactions generated by IoT devices. This ensures that the Crankk network can grow and accommodate increasing nodes and IoT applications without compromising performance.
2. Security: Kadena's Layer 1 Proof of Work (PoW) blockchain is known for its robust security features. Building a secure foundation is critical for the Crankk network, especially when dealing with real-world data and potentially sensitive information from IoT devices. Kadena’s braided chain architecture is securely scalable, so security is not compromised while scaling.
3. Pact Smart Contracts: Kadena's unique smart contract language, Pact, offers features such as formal verification and upgradable contracts, making it easier to create safe and reliable smart contracts. This is particularly important for Crankk, as it relies on smart contracts to regulate its Proof of Network Participation system and token distribution.
4. Fairness and Transparency: By leveraging Kadena's blockchain and Pact smart contracts, Crankk can ensure fairness and transparency in its operations, particularly in the distribution of rewards and the execution of the PoNP. This helps build trust within the community and among node operators.

Crankk’s Initiatives Beyond DePINCrankk Card: This will be a one-of-a-kind, on-chain, virtual prepaid debit card that you can use for subscription models. Crankk is building toward a solution where the Crankk card can be used to cover all gas fees for different applications and wallets. The card was not originally in the roadmap; however, the team is developing it on the Kadena blockchain. With one wallet, it will cover all your gas fees for all your gateways on different chains.

Crankk Roadmap: What’s Next?

Since their token launch in 2022, Crankk’s roadmap has iterated in real-time based on community demand. Crankk is constantly listening to what the community wants, and as an open-source project, it’s built custom solutions for community members.

Conclusion

DePIN is ushering in a new era of excitement around blockchain in a way that is nostalgic of DeFi summer and other eras of glory from years past. Now equipped with Kadena’s technology, projects like Crankk can demonstrate the full potential of DePIN applications. Crankk’s ability to bring everything from IoT devices to mobile markets on-chain through Pact smart contracts is exactly what was missing. Are you ready for DePIN spring?