Moody's ratings report pointed out that decentralized physical infrastructure (DePIN) has the potential to help existing networks expand and innovate, but its widespread application faces multiple obstacles such as unclear regulations, cybersecurity risks, and the need for large infrastructure investments. At the same time, projects like Helium (HNT) show good development prospects for the industry, but the unclear global regulatory environment may become a constraint. DePIN combines blockchain technology with real-world networks such as telecommunications and storage, attracting more and more venture capital and industry attention.

Key points

- Moody's believes that DePIN has the potential to improve the reliability and efficiency of the network and reduce operating costs.

- Unclear regulations are one of the main obstacles to the widespread application of DePIN.

- Increased cybersecurity risks and huge infrastructure investment requirements hinder the adoption of DePIN.

- DePIN can incentivize participants and help network expansion by issuing digital tokens.

- Connecting existing infrastructure and blockchain may trigger new attack risks.

- DePIN attracted more than $583 million in private investment in 2023, reflecting the market's interest in the field.

- The rising attention to DePIN has also made it one of the hottest areas in the digital asset field.