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Moody's warns of risks for DePIN despite growth potential

Decentralized Physical Infrastructure Networks (DePIN) can improve scalability and innovation on existing networks, but faces serious risks including unclear regulations and cyber threats, according to Moody's first report. DePIN uses blockchain to streamline industries such as telecoms and transportation, reducing costs and increasing reliability.

However, the lack of clear regulation and significant investment costs could slow the development of the sector. Projects such as Helium show potential, but cybersecurity and regulatory frameworks remain key challenges.

📖 DePIN (Decentralized Physical Infrastructure Networks) are projects that use blockchain to decentralize the management and financing of physical infrastructure, such as internet networks, data centers, or energy systems.

Instead of relying on centralized companies, network participants can invest and receive rewards for helping to build and maintain this infrastructure.