Understanding the Three Concepts: DeFAI, DeSci, and DePIN
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Understanding the Three Concepts: DeFAI, DeSci, and DePIN
DePIN, DeSci, and DeFAI, as emerging frontier concepts, each carry distinct missions and visions.
Navigating Web3 tides with focused insightsAuthor: Max.S
"Bull markets spawn concepts." Since the bull market kicked off last November with BTC breaking $100,000, an increasing number of AI+Web3 concepts—driven by technological advances—have come flooding in. The pace of iteration and sheer creativity behind these ideas have made sleep an increasingly rare luxury. Recently, my good friend Renée released a video titled Is the hot money flowing into DeSci the beginning of a revolution and breakout, or just another passing trend?, which inspired me to explain DePIN, DeSci, and DeFAI in the simplest terms possible.
First up: the elder brother, "DePIN"
The elder brother’s full name is “Decentralized Physical Infrastructure Networks,” representing decentralized physical infrastructure networks. As early as 2021, IoTeX introduced the concept of MachineFi—a portmanteau of “Machine” and “DeFi”—symbolizing the financialization of machines and their generated data. Through continuous evolution within the ecosystem, Messari eventually formalized the concept of DePIN: a new way to build and maintain real-world infrastructure.
DePIN leverages blockchain technology and token incentives to coordinate physical hardware across multiple individual units in a permissionless, trustless, and programmable manner.
IoTeX itself stands as one of the best practitioners of the DePIN concept. Beyond cold wallets, it's one of the few Web3 projects with tangible physical products. Its two flagship offerings—a home security camera and a physical data logger—are pioneers bringing Web3 into everyday life, enabling global users to collaborate in building and maintaining infrastructure networks.
Recently, IoTeX announced a strategic partnership with Eliza Labs, integrating IoTeX’s modular DePIN infrastructure deeply with ElizaOS to co-develop AI Agents capable of perceiving the physical world. In simple terms, this means feeding real-time data and services from the DePIN network directly to AI Agents.
Let’s take a moment to briefly explain what an AI Agent is. An AI Agent (Artificial Intelligence Agent) is an intelligent entity capable of sensing its environment, making decisions, and performing actions accordingly. Unlike traditional AI systems, AI Agents possess autonomy, reactivity, proactiveness, and social capabilities—they can simulate human thought and behavior to execute complex tasks. The evolution from AI to AI Agent represents a shift from passive to active intelligence, and from single-function to multi-functional capabilities—akin to evolving from “Jarvis” to “Vision.”
Returning to the collaboration between IoTeX and Eliza Labs: Eliza Agents will retrieve and process real-world data from DePIN networks powered by IoTeX. This enables Eliza’s Agents to perceive, act, and learn based on dynamic physical environments. One day, Eliza might truly evolve into “Ultron” or “Vision”—provided, of course, it can find some vibranium.
Let’s define DePIN: It is a network—a decentralized physical infrastructure network—that serves fields such as storage space, communication bandwidth, cloud computing, and energy.
Next: the second brother, "DeSci"
The rise of "the second brother" owes much to two heavyweights: CZ and Vitalik. Their initials “CV” coincidentally mean “voice actor” in Chinese, and like voice actors breathing life into anime characters, they’ve injected vitality into DeSci.
DeSci, short for “Decentralized Science,” focuses on using blockchain technologies—such as FTs, NFTs, and DAOs—to address issues in peer review, research funding, intellectual property management, data transparency, and censorship mechanisms. DeSci empowers scientists to raise funds, conduct experiments, share data, and disseminate insights, thereby democratizing scientific research and discovery. (Quoted from Renée’s video: Is the hot money flowing into DeSci the beginning of a revolution and breakout, or just another passing trend?)
Among many definitions of DeSci, my favorite describes it as a bridge—one that allows ordinary people to participate directly in high-level technological development through memes as an investment vehicle, while simultaneously providing scientists with abundant research funding. Moreover, through decentralization, it ensures full transparency throughout the entire research process. All data and decisions are publicly recorded on the blockchain, minimizing the possibility of human manipulation.
Who stands to lose from the rise of DeSci? Undoubtedly, the era of academic oligarchs (“academic warlords”) may be coming to an end! How many aspiring researchers have had their passion for science extinguished by these gatekeepers? Academic warlords and their disciples monopolize resources—research funding, lab equipment, editorial control of journals—through various means, suppressing newcomers and alternative viewpoints, thus hindering academic freedom and innovation.
DeSci does not rely on centralized authorities. Instead, it offers equal participation opportunities to any qualified researcher through decentralization. This encourages greater involvement from new voices and diverse perspectives, breaking the stranglehold of academic oligarchs. Blockchain-based NFT technology can effectively manage intellectual property rights, ensuring fair distribution of rewards to all contributors and preventing academic elites from profiting unfairly through IP control.
Through transparent sharing, decentralized governance, and democratization, DeSci has the potential to dismantle academic monopolies and promote fairness and openness in academia. However, DeSci also faces challenges in legal frameworks, technical implementation, and academic recognition, requiring sustained efforts to achieve its vision.
So here’s our definition of DeSci: It is a philosophy—the end of the “academic warlords.” By transforming traditional models of research funding allocation and dissemination of findings, DeSci addresses longstanding issues of transparency, fairness, and openness in science.
Finally: the youngest brother, "DeFAI"
DeFAI is a brand-new concept. Literally interpreted, it’s the fusion of DeFi and artificial intelligence. By leveraging AI’s powerful computational and analytical capabilities, DeFAI aims to enhance the efficiency and security of DeFi applications.
As illustrated in the article *“An Initial Exploration of DeFAI: Deep Integration of DeFi and AI, Three Core Scenarios Driving Mass Adoption of DeFi,”* users could issue commands via natural language, such as: “Swap 3 ETH for USDC” or “Provide liquidity in the ETH-USDC pool.” Behind the scenes, AI would automatically parse the request, search for optimal liquidity sources, generate transaction data, and prompt the user to sign via their wallet.
From this example alone, DeFAI could significantly lower the barrier to entry for DeFi users, eliminating the need to spend extensive time learning how to use wallets, DEXs, or swap interfaces. AI integration drastically reduces complexity and increases certainty.
As a long-time crypto veteran, I worry whether AI can accurately interpret my trading instructions—after all, certain trade parameters change in milliseconds. Clearly, my brain directing my hands to execute trades is faster than my brain telling my mouth to speak, then waiting for AI to act. When real money is at stake, users won’t sacrifice security for flashy convenience. For DeFAI to achieve mass adoption, there must first be breakthrough progress in AI performance—perhaps something like Elon Musk’s brain-computer interface.
DePIN, DeSci, and DeFAI are emerging frontier concepts, each carrying distinct missions and visions. Though still in their infancy, with ongoing technological advancements, ecosystem maturation, and growing market awareness, they hold the potential to drive profound transformations in their respective domains. They may even converge and advance together, collectively shaping a more open, efficient, and intelligent digital economy.
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