'Concepts emerge in bull markets'. With last November's bull market kicking off and BTC breaking 100,000, the rapid advancement of technology has led to a plethora of AI + Web3 concepts that leave us dazzled. The speed of iteration of related concepts and the breadth of ideas have made sleep gradually a luxury. Recently, my good friend Renée released a video about the influx of hot money into DeSci: Is it the beginning of a revolution and breaking the mold, or just another fleeting trend? This motivated me to explain DePIN, DeSci, and DeFAI in the simplest possible language.
First, let me introduce the big brother 'DePIN'.
The big brother's full name is 'Decentralized Physical Infrastructure Networks', representing decentralized physical infrastructure networks. As early as 2021, IoTeX proposed the concept of MachineFi, which combines 'Machine' and 'DeFi' to represent the financialization of machines and the data they generate. After continuous development and evolution of the ecosystem, the concept of DePIN was ultimately proposed by Messari, representing a way to establish and maintain infrastructure in the real world.
DePIN adopts blockchain technology, coordinating multiple individual units' physical hardware facilities in a permissionless, trustless, and programmable manner through token incentives.
IoTeX itself is the best practitioner of the DePIN concept. They are one of the few Web3 projects with physical products, aside from cold wallets. Their two products, a home camera and a physical data recorder, are pioneers in bringing Web3 into real life, facilitating global users to cooperate in building and maintaining the infrastructure network.
Recently, they also announced a strategic partnership with Eliza Labs, deeply integrating IoTeX's modular DePIN infrastructure with ElizaOS to jointly create an AI Agent capable of perceiving the physical world. In simple terms, this means 'feeding' real-time data and services from the DePIN network to the AI Agent.
Here, let's also popularize what an AI Agent is. An AI Agent is an intelligent entity capable of perceiving the environment, making decisions, and executing corresponding actions. Unlike traditional AI systems, AI Agents possess autonomy, reactivity, proactivity, and social capabilities, enabling them to simulate human thinking and behavior and perform complex tasks. The evolution from AI to AI Agent essentially signifies a transition from passive to active, from singular capabilities to diversified capabilities, similar to the evolution from 'Jarvis' to 'Vision'.
Returning to the collaboration between IoTeX and Eliza Labs, Eliza acts as an agent to retrieve and process real-world data from the DePIN network supported by IoTeX. This will enable Eliza's Agent to perceive, act, and learn based on the dynamic physical environment. One day, Eliza might truly evolve into 'Ultron' or 'Vision', provided it can find vibranium.
Let's define DePIN: it is a network, a decentralized physical infrastructure network. It serves infrastructure networks in fields such as storage space, communication traffic, cloud computing, and energy.
Next, let me introduce the second brother, 'DeSci'.
'The second brother's' rise is inseparable from the two big shots, CZ and Vitalik. Their initials 'CV' happen to mean voice actor, and just like voice actors breathe life into anime characters, they have injected vitality into DeSci.
DeSci, short for 'Decentralized Science', focuses on utilizing blockchain technology and features, such as FT, NFT, DAO, etc., to solve problems related to review, research funding, intellectual property management, data transparency, and review mechanisms. DeSci enables scientists to raise funds, conduct experiments, share data, and distribute insights, aiming for democratized scientific research and discovery. (Citing Renée's video on the influx of hot money into DeSci: Is it the start of a revolution and breaking the mold, or just another fleeting trend?)
Among the many overviews of DeSci, my favorite definition is that it is more like a bridge, allowing the general public to participate in 'high-end' technological development through direct investment methods like memes, while in turn enabling scientists to obtain ample research funding. It also achieves transparency in the entire research process through decentralized means. All data and decisions are publicly recorded on the blockchain, reducing the possibility of human intervention.
Who will the rise and development of DeSci affect? Undoubtedly, the end of the 'academic elite' is near! How many research students have had their passion for science extinguished by 'academic elites'? They monopolize academic resources such as research funding, laboratory equipment, and academic journal editorial rights through various means. They exclude and attack academic newcomers and researchers with differing viewpoints, hindering academic freedom and innovation.
DeSci does not rely on specific authoritative institutions, providing equal participation opportunities for any capable researcher through a decentralized approach. This will encourage more newcomers and researchers with different viewpoints to engage in academic research, breaking the monopoly of academic elites. The blockchain's NFT technology will serve knowledge property management well, ensuring that all contributors can fairly share the benefits and preventing academic elites from obtaining improper benefits through control of intellectual property.
DeSci has the potential to break the monopoly of academic elites and promote fairness and openness in academia through transparent sharing, decentralized management, and democratization. However, DeSci also faces challenges in legal, technical, and academic recognition aspects, and needs to continuously strive in these areas to achieve its goals.
Let’s also define DeSci: it is an ideology, the 'terminator' of academic elites. DeSci addresses issues of transparency, fairness, and openness in traditional scientific research funding coordination and result dissemination by changing traditional models.
Finally, let me introduce the third brother 'DeFAI'.
DeFAI is a newly born concept, literally understood as the combination of DeFi and artificial intelligence. By leveraging AI's powerful computing and data analysis capabilities, it enhances the efficiency and security of DeFi projects.
Citing an example from the article 'Exploring DeFAI: The Deep Integration of DeFi and AI, Three Core Scenarios Promoting Large-Scale Application of DeFi', users can issue commands directly in 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 sources, generate transaction data, and prompt the user to select a wallet for signing operations.
Starting from this example, DeFAI can lower the threshold for DeFi users, who do not need to spend a lot of time learning how to use DeFi infrastructures like wallets, DEX, or swaps. The involvement of AI will significantly reduce complexity and enhance certainty.
As an old veteran in the crypto space, I worry whether AI's understanding of natural language can complete my trading instructions. After all, some trading parameters change in an instant. It's clear that my brain directly commanding my hand to complete a trade is much faster than my brain instructing my mouth to issue commands, which are then executed by AI. Users cannot sacrifice security for superficial convenience when real money is at stake. If DeFAI wants to achieve mass adoption, there must be groundbreaking advancements in AI performance, such as Elon Musk's brain-machine interface.
As emerging cutting-edge concepts, DePIN, DeSci, and DeFAI each carry different missions and visions. Although they are all still in the early stages of development, with continuous technological advancements, gradual improvement of the ecosystem, and increasing market awareness, they are expected to trigger profound changes in their respective fields, and might even intertwine and progress collaboratively to shape a more open, efficient, and intelligent new ecosystem for the digital economy.