Written by Max.S
"Bull market brings out concepts". With the bull market kicking off in November last year and BTC breaking through 100,000, more and more AI+Web3 concepts combined with technological progress have overwhelmed us. The rapid iteration of related concepts and the huge imagination have made sleep a luxury. Recently, my good friend Renée released a video about DeSci, where hot money is pouring in. Is it the beginning of a revolution and a breakthrough, or is it just another smoke and mirrors? This gave me the motivation to explain DePIN, DeSci and DeFAI to everyone in the simplest language possible.
First, let me introduce the big brother "DePIN"
The full name of Big Brother is "Decentralized Physical Infrastructure Networks", which stands for decentralized physical infrastructure networks. As early as 2021, IoTeX proposed the concept of MachineFi, which combines "Machine" and "DeFi" (decentralized finance) to represent the concept of financialization of machines and the data they generate. After the continuous development and evolution of the ecosystem, Messari finally proposed the concept of DePIN, which is a way to build and maintain infrastructure in the real world.
DePIN uses blockchain technology to coordinate the physical hardware facilities of multiple individual units in a permissionless, trustless and programmable manner through token incentives.
IoTeX itself is a best practicer of the DePIN concept. They are one of the few Web3 projects that have physical products other than cold wallets. Two of its products, home cameras and physical data recorders, are pioneers of Web3 entering real life, promoting the cooperation of global users to jointly build and maintain infrastructure networks.
Recently, they also announced a strategic partnership with Eliza Labs to deeply integrate IoTeX's DePIN modular infrastructure with ElizaOS to jointly create an AI Agent with the ability to perceive the physical world. In simple terms, it is to "feed" the real-time data and services of the DePIN network to the AI Agent.
Here, let's take a look at what AI Agent is. AI Agent (artificial intelligence agent) is an intelligent entity that can perceive the environment, make decisions, and perform corresponding operations. Unlike traditional artificial intelligence systems, AI Agent has autonomy, responsiveness, initiative, and social ability, and can simulate human thinking and behavior and perform complex tasks. The evolution of AI to AI Agent is essentially the transformation of AI from passive to active, from single ability to multiple abilities, just like the evolution from "Jarvis" to "Vision".
Back to the collaboration between IoTeX and Eliza Labs, the Eliza agent retrieves and processes real-world data from the DePIN network powered by IoTeX. This will enable Eliza's agent to perceive, act, and learn based on the dynamic physical environment. Eliza may one day really evolve into "Ultron" or "Vision", provided that he can really find vibranium.
Let's define DePIN. It is a network, a decentralized physical infrastructure network. It is an infrastructure network serving storage space, communication traffic, cloud computing, energy and other fields.
Next, let me introduce my second brother "DeSci"
The popularity of "DeSci" is inseparable from the two big guys, CZ and Vitalik. Their initials "CV" just happen to mean voice actors. They injected vitality into DeSci just like voice actors give life to anime characters.
DeSci stands for "Decentralized Science". Its focus is to use blockchain technology and features, such as FT, NFT, DAO, etc. to solve problems such as review, scientific research funding, intellectual property management, data transparency and review mechanisms. DeSci allows scientists to raise funds, run experiments, share data, distribute insights, etc. to achieve democratized scientific research and discovery. (Quote from Renée's video: Is DeSci, where hot money is pouring in, the beginning of a revolution and a breakthrough, or just another smoke and mirrors?)
My favorite definition of DeSci is that it is more like a bridge, which allows ordinary people to participate in the development of "high-end" science and technology through memes, a direct investment method, while in turn allowing a group of scientists to obtain sufficient research funds. And the transparency of the entire research process is achieved through decentralized means. All data and decisions are publicly recorded on the blockchain, reducing the possibility of human intervention.
Whose "cake" will be affected by the rise and development of DeSci? There is no doubt that the end of the "academic tycoons" has come! How many scientific research students have had their enthusiasm for science dampened by the "academic tycoons". The academic tycoons and their disciples use various means to monopolize academic resources, such as research funds, laboratory equipment, and academic journal editing rights. They exclude and attack academic newcomers and researchers with different views, hindering academic freedom and innovation.
DeSci does not rely on a specific authority, and provides equal participation opportunities for any capable researcher in a decentralized manner. This will encourage more newcomers and researchers with different perspectives to participate in academic research and break the monopoly of academic cliques. Blockchain's NFT technology will serve the management of intellectual property rights well, ensuring that all contributors can share the benefits fairly and preventing academic cliques from obtaining improper benefits by controlling intellectual property rights.
DeSci has the potential to break the monopoly of academic cliques and promote fairness and openness in academia through transparent sharing, decentralized management, and democratization. However, DeSci also faces challenges in terms of law, technology, and academic recognition, and needs to continue to work hard in these areas to achieve its goals.
Let us also give DeSci a definition: It is a concept and an end to "academic cliques". DeSci solves the problems of transparency, fairness and openness in the traditional scientific research field by changing the traditional scientific research funding coordination model and scientific research results dissemination model.
Finally, let me introduce my third brother "DeFAI"
DeFAI is a newly born concept. Literally, DeFAI is a combination of DeFi and artificial intelligence. Through the powerful computing power and data analysis capabilities of AI, the efficiency and security of DeFi projects are improved.
Citing the example in the article (DeFAI Preliminary Exploration: Deep Integration of DeFi and AI, Three Core Scenarios Promote Large-Scale Application of DeFi), users can directly issue instructions through natural language, such as: "Exchange 3 ETH for USDC" or "Provide liquidity in the ETH-USDC pool." In the background, AI will automatically parse user requests, search for the best liquidity source, generate transaction data, and prompt users to select a wallet for signing operations.
If we only start from this example, DeFAI can lower the threshold for DeFi users. Users do not need to spend a lot of time learning how to use DeFi infrastructure such as wallets, dex or swap, etc. The intervention of AI will greatly reduce complexity and improve certainty.
As an old investor in the cryptocurrency industry, I am concerned about whether AI’s understanding of natural language can complete my trading instructions. After all, some trading parameters change rapidly. It is obvious that my brain can directly command my hands to complete the transaction much faster than my brain commands my mouth to issue commands and then AI executes them. Users cannot sacrifice security for flashy convenience when it comes to real money. If DeFAI is to achieve mass adoption, at least there must be breakthrough progress in AI performance, such as Musk’s brain-computer interface.
As emerging cutting-edge concepts, DePIN, DeSci and DeFAI each carry different missions and visions. Although they are still in the early stages of development, with the continuous advancement of technology, the gradual improvement of the ecosystem and the gradual improvement of market awareness, they are expected to trigger profound changes in their respective fields in the future, and even interweave and work together to jointly shape a more open, efficient and intelligent new digital economy ecosystem.