ChainCatcher reported that according to CoinDesk, rating agency Moody's said in its first report on the DePIN (decentralized physical infrastructure) field released on Tuesday that DePIN can help existing networks expand and innovate, but various risks such as unclear regulations may inhibit its growth.
“By combining established parts of the system backbone with the building blocks of distributed ledger technology (DLT), DePIN has the potential to improve the reliability and efficiency of the network while reducing operating costs and optimizing resources and industry collaboration,” the report’s authors said.
“However, widespread adoption of DePIN faces significant barriers, including regulatory and interoperability issues, cybersecurity risks, and the need for significant investment in infrastructure and skills,” they added.
The report notes that existing network operators - such as telecommunications companies, utilities and others - face growing user demand, which requires capital-intensive infrastructure development. The report also states that leveraging a decentralized model can help them alleviate some of the pressure and remain competitive as artificial intelligence and the Internet of Things (IoT) disrupt old business models.
