According to "CoinDesk", the international credit rating agency Moody's (Moody's Ratings) stated in its first report on decentralized physical infrastructure (DePIN) on Tuesday that the DePIN industry may help the expansion of existing networks and Innovation, but a number of risks, including unclear regulations, could hinder its development.
The report’s authors said: “By connecting existing 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 operational costs and optimally resources and industrial cooperation.”
However, the report notes that DePIN faces significant obstacles to widespread adoption, including regulatory and interoperability issues, cybersecurity risks, and the need for significant investment in infrastructure and technology.
Moody's report pointed out that existing network operators - telecommunications companies, utilities and transportation industries - face growing user demand and require capital-intensive infrastructure construction. The report adds that when artificial intelligence and the Internet of Things (IoT) disrupt old business models, leveraging decentralized models may help them relieve some of the pressure and remain competitive.
One of the attractions of DePIN is the issuance of its own digital token, which can help the project incentivize participation and network expansion. However, today’s unclear global regulatory landscape makes compliance an issue, potentially stifling the industry’s growth. Connecting existing infrastructure with blockchain technology may also open new avenues of attack and create cybersecurity risks.
Rajeev Bamra, senior vice president and head of digital economy strategy at Moody's Ratings, told CoinDesk:
"The motivation behind writing DePIN is to draw attention to the real need for industries to re-evaluate their infrastructure management strategies in a world increasingly driven by digital transformation."
According to a report by digital asset market maker Wintermute, the DePIN industry's growing psychological traction is reflected in the growth of venture capital funding, with investors allocating a total of $583 million in private investment to DePIN projects so far this year. , has exceeded the previous record in 2022.
Moody's report takes the decentralized wireless network project Helium (HNT) as an example, pointing out that this field has shown promising development. Helium deploys and maintains wireless network hotspots by giving users token rewards. The report states that the project has attracted more than 350,000 participants and gained more than 100,000 subscribers.
