Moody's latest report: DePIN technology shows promise but still faces many obstacles
ChainCatcher news, according to CoinDesk, the rating agency Moody's stated in its first report on the DePIN (Decentralized Physical Infrastructure) sector released on Tuesday that DePIN can help existing networks expand and innovate, but various risks such as unclear regulations may hinder its growth."By combining established parts of the system backbone with building blocks of distributed ledger technology (DLT), DePIN has the potential to enhance the reliability and efficiency of networks while reducing operational costs, optimizing resources, and facilitating industry collaboration," the authors of the report stated."However, widespread adoption of DePIN faces significant obstacles, including regulatory and interoperability issues, cybersecurity risks, and the enormous investment requirements for infrastructure and skills," they added.The report noted that existing network operators—such as telecommunications companies and utility companies—are facing increasing user demands that require capital-intensive infrastructure development. The report also pointed out that leveraging decentralized models could help them alleviate some of the pressure while maintaining competitiveness as artificial intelligence and the Internet of Things (IoT) disrupt traditional business models.