According to CoinDesk, Moody's pointed out in its first DePIN report that DePIN (decentralized physical infrastructure) may help existing networks expand and innovate, but unclear regulations may hinder the widespread adoption of technology.
The report mentions that by combining the system backbone with distributed ledger technology (DLT), DePIN has the potential to improve network reliability and efficiency, reduce operating costs, and optimize resources and industry collaboration.
However, widespread adoption faces significant barriers, including regulatory and interoperability issues, cybersecurity risks, and huge investment needs in infrastructure and skills.
The report notes that existing network operators such as telecommunications companies, utilities and transportation face growing user demand, and decentralized models can help ease the pressure and remain relevant as artificial intelligence and the Internet of Things (IoT) disrupt old business models.
One of the attractions of DePIN is issuing its own digital tokens to help projects incentivize participation and network expansion. But the current unclear global regulatory environment makes compliance difficult and could hinder development in the field. Connecting existing infrastructure to blockchain could also introduce new attack vectors and increase cybersecurity risks.
The Moodyâs report cites Helium (HNT) as a promising example in the space, with the project attracting more than 350,000 participants and gaining more than 100,000 subscribers.
