The crypto world has a habit of cycling through buzzwords, but some ideas have managed to stick and evolve. Decentralized finance, or DeFi, is one of them. Once the star of the 2020–2021 boom, DeFi has returned to headlines as capital flows back into blockchain ecosystems.
A newer concept known as decentralized physical infrastructure networks, or DePIN, is sparking attention for linking blockchain rewards with tangible assets like wireless coverage, sensors, and energy grids.
DeFi refers to financial applications built on blockchain systems that allow people to borrow, lend, trade, and earn interest without relying on traditional banks or intermediaries.
The sector saw billions of dollars in “total value locked” at its peak, and while it endured a sharp correction, recent months have shown renewed inflows. That revival is partly driven by improved protocols and investors searching for alternatives in a higher-rate environment.
DePIN takes the decentralized model in a different direction. Instead of focusing only on digital tokens and trading platforms, DePIN projects aim to incentivize people to build and maintain physical infrastructure.
Participants might earn tokens for providing internet hotspots, deploying sensors that feed real-time data, or contributing to renewable energy grids. Supporters argue this creates a self-reinforcing loop, real-world networks expand while token holders capture value tied to tangible activity.
DeFi remains central to crypto’s financial plumbing, offering liquidity and yield. DePIN pushes blockchain further into the physical economy, which could diversify adoption and reduce reliance on purely financial engineering. Both areas still carry significant risk, including regulatory scrutiny, token volatility, and execution hurdles.
Institutional interest adds to the momentum. Venture funds and corporate investors have begun allocating capital to DePIN startups, echoing the early funding waves of DeFi.
Traditional financial players continue to test blockchain-based lending and settlement systems, signaling that DeFi infrastructure may eventually complement, rather than replace, existing finance.
