Moody's: DePIN has a bright future, but its widespread adoption still faces obstacles such as regulatory uncertainty

Moody's, a Wall Street credit rating agency, published its first report on the DePIN industry, noting that the sector helps existing networks expand and innovate, but several risk factors such as unclear regulation could inhibit growth. "By connecting established parts of the system backbone with the building blocks of distributed ledger technology (DLT), DePIN has the potential to improve network reliability and efficiency while reducing operating costs, optimizing resources and industry collaboration," the report's authors said. "However, there are significant barriers to widespread adoption, including regulatory and interoperability issues, cybersecurity risks, and the need for significant investment in infrastructure and skills," it added. Existing network operators - telecom companies, utilities and transportation companies, among others - face growing user demand, which requires capital-intensive infrastructure development. The report added that leveraging a decentralized model could help them relieve some of the pressure and remain relevant as artificial intelligence and the Internet of Things (IoT) disrupt old business models. (CoinDesk)