DePIN (Decentralized Physical Infrastructure Networks)
A category of blockchain projects that use token incentives to crowdsource the deployment and operation of real-world physical infrastructure — such as wireless networks, storage, computing, energy grids, and mapping. Instead of a single company building infrastructure (e.g., AT&T for telecom), DePIN uses crypto economic incentives to coordinate thousands of individual contributors to collectively build and operate these networks.
“Helium is a DePIN project where individuals deploy LoRaWAN hotspots to provide IoT wireless coverage, earning HNT tokens for the data traffic they relay. Filecoin incentivizes decentralized file storage.”
Token
A digital asset created on an existing blockchain rather than its own native chain. Tokens can represent a wide range of assets and utilities — from currency and governance rights to real-world assets and collectibles. Unlike coins (BTC, ETH) which are native to their blockchain, tokens are created using smart contracts on platforms like Ethereum (ERC-20, ERC-721).
Decentralization
The distribution of control, authority, and data processing across a network of participants rather than concentrating it in a single entity. In blockchain, decentralization means no single party controls the network, making it censorship-resistant and reducing single points of failure.
RWA (Real World Assets)
Physical or traditional financial assets — such as real estate, government bonds, commodities, private credit, and equities — that have been tokenized and brought on-chain as blockchain tokens. RWA tokenization aims to make traditionally illiquid or access-restricted assets tradeable, fractionally ownable, and composable with DeFi protocols. It is viewed as one of the largest growth opportunities for bridging traditional finance with blockchain.
Protocol
A set of rules, standards, and smart contracts that define how a blockchain network or decentralized application operates. In DeFi, 'protocol' typically refers to the suite of smart contracts that provide a specific financial service. Protocols are usually governed by DAOs and can be forked (copied and modified) because their code is open-source.