peaq, the home of the DePINs (Secured by Polkadot)

Versión en español: aquí

With the imminent launch of the peaq core network expected in September 2024, with this document I want to emphasise how peaq & Polkadot are poised to lead the #DePIN sector.

Context

According to Messari the DePIN and RWA sector will be the next big Blockchain trend, estimating that this sector will reach a market value of $3.5 trillion in the next 4 years.

Job automation, with the integration of robots and machines, is already a reality that is transforming our society.

In this context, Polkadot is perfectly positioned with its parachain peaq, a project that is leading this sector and has the ambitious goal of becoming the largest DePIN platform on the blockchain.

What is peaq?

peaq is the Web3 network powering the Economy of Things (EoT). As a layer 1 blockchain, peaq enables entrepreneurs and developers to create decentralised applications and DePINs for vehicles, robots and devices, while allowing users to govern and earn money as connected machines provide goods and services.

peaq is co-creating standards that will drive the future of mobility and other connected industries as it works to democratise abundance in the Age of Automation.

What does this mean? In short: with peaq you will be able to benefit from the economy generated by the arrival of machines and robots. How?

1. Investing in the purchase of machines and robots. Thanks to asset tokenization (RWA) you can own part of these machines and robots by buying tokens representing those assets.
2. Receiving rewards for the jobs these machines do. Imagine you have bought tokens of a robot that serves coffees, well, for each coffee served you would be receiving rewards.

If you want to know more details of how it works, you can see an example here.

What I like most about peaq is that with their economy of things (EoT) philosophy, apart from democratising the economy by empowering the user, they will make it possible to connect the Web3 with the real world. I personally think that this connection of real-world assets with the blockchain will be the great catalyst that will lead us to definitive adoption.

What is DePIN?

Decentralised Physical Infrastructure Networks (DePINs) are a new paradigm for building, managing and interacting with physical infrastructure using blockchain technology. Unlike traditional centralised systems, DePINs distribute control and benefits among a wider network of participants, making them more democratic, secure, transparent and resilient.

Key features of DePINs:

• Distributed ownership and control: Participants in a DePIN network share ownership and control of the infrastructure, unlike traditional centralised systems controlled by a few entities.
• Incentivised participation: Participants are rewarded with tokens for contributing to the network, encouraging participation and growth.
• Increased security and transparency: Blockchain technology ensures secure and transparent transactions and records, fostering trust between participants.

The DePIN wheel:

Figure 1: Gala, S. and Kassab, S. (2024).

1. Taxpayers come together and provide services.
2. Contributors are rewarded with tokens.
3. The value of the token appreciates as the network grows.
4. Increased coverage improves infrastructure and user experience.
5. A higher token value attracts more contributors.
6. A larger taxpayer base drives demand for services.
7. Increased demand for services increases the value of the token.

Why does peaq choose Polkadot?

As you can imagine, a DePIN project relies heavily on accurate and up-to-date data, so an infrastructure that guarantees stability, performance, security and scalability will be essential.

It is in this context where projects demand a reliable network that Polkadot is becoming the ideal solution.

Today (August 2024), the peaq ecosystem includes more than 800,000 machines, vehicles, robots and other devices, manages more than $25 million in tokenised real-world assets (RWA) and hosts more than 30 DePIN projects.

The key metrics provided by Polkadot that make peaq an attractive option for DePIN projects are:

• Decentralisation: peaq inherits Polkadot's relay chain security, which has a Nakamoto coefficient of 90, one of the best coefficients in the entire blockchain.
• Scalability and performance: the network currently handles 10,000 transactions per second and could reach over 100,000 TPS by 2025 with the arrival of Polkadot 2.0.
• Cost: Transactions cost as little as $0.00025, making it a very affordable network.

Conclusion:
Today the combination of Polkadot & peaq is by far the best technical option to address the future challenges of the burgeoning DePIN and RWA sector.

Bibliography:
Messari report on peaq: see report