Decentralized Physical Infrastructure Networks: A Catalyst for Critical Infrastructure Resilience?

The growing complexity and interdependency of Critical Infrastructure (CI) systems have worsened their vulnerability to disruptions, and put their resilience as a key focus in both academic discourse and industrial practices. In recent years, Decentralized Physical Infrastructure Network (DePIN) has emerged as a concept that combines physical infrastructure with blockchain technology to create decentralized networks for various applications. It applies the principles of Web3 (decentralized internet) to the physical world. DePIN aims to establish decentralized networks for managing physical assets and services more efficiently, transparently, and securely. Unlike traditional centralized infrastructure, DePIN distributes decision-making, resource management, and system control across a network of sovereign (autonomously owned) but functionally interconnected nodes. This paper examines the impact of DePIN on CI resilience by analyzing how decentralization can enhance the ability of CI systems to cope with disruptions. We explore the potential benefits of improved flexibility, redundancy, and adaptability on CI resilience. In the first step, we examine the key characteristics of DePIN and its resilience-enhancing features. Subsequently, we examine real-world applications of DePIN in sectors such as energy, transportation, healthcare, and supply chain to assess its practical impact on resilience. By looking from the perspectives of Complex Adaptive Systems (CAS) theory and Resilience Engineering, we gain a deeper understanding of DePIN's potential to enhance CI resilience. While DePIN presents significant potential in improving resilience, there are also challenges and limitations related to coordination, interoperability, and governance that must be addressed to fully realize these benefits. The paper also outlines the current advantages and drawbacks of infrastructure decentralization, considering potentially associated economic and social impacts. Finally, we identify future research directions that can help leverage DePINs characteristics and design principles to develop the next generation of resilient, adaptable, and sustainable infrastructure systems.

Keywords: Decentralized Physical Infrastructure Network (DePIN), Critical infrastructure, Resilience.