Physical Infrastructure

Definition ∞ Physical infrastructure refers to the foundational tangible assets and systems required for the operation of a society or economy. This includes structures such as roads, bridges, power grids, communication networks, and data centers. These components provide the essential services and connectivity that underpin digital and traditional economic activities. Their reliability and availability are critical for sustained growth and functionality.
Context ∞ Within the context of blockchain and digital assets, physical infrastructure is increasingly relevant through the DePIN sector, which decentralizes the ownership and operation of such assets. Discussions often highlight the energy demands of cryptocurrency mining and the need for robust data centers to support blockchain networks. A critical future development involves the integration of decentralized energy grids and storage solutions to power blockchain operations more sustainably. The interaction between digital assets and the physical infrastructure that supports them is a growing area of interest for economic and environmental considerations.