DePIN, DeSci, and DeFAI: Emerging Concepts in the Web3 Ecosystem

With Bitcoin breaking the $100,000 barrier last November, the bull market officially began. Against this backdrop, combined with rapid technological advancements, an increasing number of AI + Web3 concepts are emerging, making it hard to keep up. The speed of iteration and the breadth of creativity in these concepts make one sigh that sleep has become a luxury. Recently, discussions about DeSci have sparked heated debates—will it become a revolutionary breakthrough or just a fleeting moment? This piqued my interest, and I want to explain the three emerging concepts of DePIN, DeSci, and DeFAI in simple and understandable terms.

DePIN: Decentralized Physical Infrastructure Network

DePIN stands for "Decentralized Physical Infrastructure Networks," representing decentralized physical infrastructure networks. The prototype of this concept can be traced back to 2021 when a blockchain company introduced the MachineFi concept, which aimed to combine "Machine" and "DeFi" (Decentralized Finance) to realize the financialization of machines and the data they generate. After continuous development and evolution of the ecosystem, industry analysis organizations ultimately proposed a more comprehensive DePIN concept.

DePIN utilizes blockchain technology to coordinate multiple individual units of physical hardware facilities through a token incentive mechanism in a permissionless, trustless, and programmable manner. It serves as an infrastructure network for storage space, communication traffic, cloud computing, energy, and other fields.

Some Web3 projects have begun to practice the concept of DePIN, launching physical products such as home cameras and physical data loggers, becoming pioneers of Web3 entering real life. Recently, some projects have also announced collaborations with AI companies to deeply integrate DePIN modular infrastructure with AI operating systems, jointly creating AI Agents with the ability to perceive the physical world.

This collaboration enables AI Agents to retrieve and process real-world data from networks that support DePIN, allowing them to perceive, act, and learn based on dynamic physical environments. This opens up new possibilities for the evolution of AI Agents, steering them towards becoming more intelligent and autonomous.

DeSci: Decentralized Science

DeSci stands for "Decentralized Science," and its core lies in utilizing the characteristics of blockchain technology, such as tokenization, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc., to address a series of issues in the field of scientific research, including peer review, research funding, intellectual property management, data transparency, and review mechanisms.

The goal of DeSci is to enable scientists to raise funds more easily, conduct experiments, share data, and disseminate research findings, thereby achieving the democratization of scientific research and discovery. It acts as a bridge connecting the general public and the scientific community. On one hand, ordinary people can participate in the development of cutting-edge technology through simple and direct investment methods; on the other hand, scientists can also obtain more sufficient research funding.

The rise of DeSci may have an impact on the "academic gatekeepers" of the traditional academic community. For a long time, some academic authorities have monopolized resources such as research funding, laboratory equipment, and academic journal editorial rights to exclude newcomers and researchers with differing viewpoints, hindering academic freedom and innovation. DeSci, through a decentralized approach, provides equal participation opportunities for all capable researchers, promising to break this monopoly.

However, the development of DeSci also faces challenges in areas such as legal issues, technology, and academic recognition, requiring continuous effort to achieve its goals.

DeFAI: The Combination of Decentralized Finance and Artificial Intelligence

DeFAI is a new concept that represents the combination of decentralized finance (DeFi) and artificial intelligence (AI). It aims to enhance the efficiency and security of DeFi projects through the powerful computing and data analysis capabilities of AI.

In theory, DeFAI can significantly lower the entry barrier for DeFi. Users do not need to spend a lot of time learning how to use wallets, decentralized exchanges, or swap protocols, but can directly issue commands in natural language, such as "swap 3 ETH for USDC" or "provide liquidity in the ETH-USDC pool". AI will automatically handle parsing user requests, searching for the best liquidity sources, generating transaction data, and prompting users to select a wallet for signature.

However, as experienced cryptocurrency investors, we can't help but have doubts about AI's ability to understand and execute complex trading instructions. After all, changes in certain trading parameters can be instantaneous, and directing a hand to complete a trade with the brain may be faster than having AI execute it through voice commands. When it comes to trading with real money, users are unlikely to sacrifice security for convenience. For DeFAI to achieve widespread application, AI technology still needs to make breakthrough advancements, such as the maturity of brain-computer interface technology.

DePIN, DeSci, and DeFAI, as emerging frontier concepts in the Web3 ecosystem, each carry different missions and visions. Although they are currently still in the early stages of development, with continuous technological advancements, gradual improvements in the ecosystem, and increasing market awareness, they are expected to bring about profound changes in their respective fields in the future. These concepts may intertwine and develop collaboratively, collectively shaping a more open, efficient, and intelligent new ecosystem of the digital economy.