A Layer 1 POS blockchain built for easy development of DePIN Networks, @peaqnetwork aims to build the home for DePINs while working towards its greater mission of powering the Economy of Things (where IoT and Web3 meet).Join me for a deep dive into peaq 🧵
1/ First, as a quick recap, here’s a primer I wrote on Decentralized Physical Infrastructure Networks (DePIN) where Web3 projects leverage token rewards to incentivize the deployment of physical infrastructure.
2/ Peaq is a decentralized smart contract platform built with Substrate and currently bidding to secure a spot as a Polkadot parachain (Crowdloan is live).
3/ (peaq’s canary chain) recently secured itself as a parachain on the ('s canary chain).
Krest serves as a safe testing environment for innovative projects before moving on to peaq.
4/As the signature product of EoT Labs (an incubation hub focused on open-source projects catering to the Web3 Machine Economy), peaq aims to usher in and scale a new economy where machines and humans meaningfully collaborate for mutual benefit: The Economy of Things (EoT).
5/ In 2020, machines accounted for approximately 30% of all tasks done in the economy (i.e. managing patient records or assisting in assembling vehicles or electronic devices).This figure is expected to increase to 50% by 2025.
6/ Understanding automation will continue rapidly developing, peaq intends to build and support a decentralized network powering the Economy of Things, one where all stakeholders (users, manufacturers, investors, machines, etc.) can benefit from technological advancements.
7/ IoT & EoT
Before delving deeper into the Economy of Things (EoT), it is important to briefly cover the Internet of Things (IoT), its benefits and shortcomings, to introduce the importance of EoT.Indeed, EoT is essentially an evolution of IoT.
8/ The Internet of Things is a growing network of interconnected devices that communicate with each other to automate tasks in an effort to simplify and improve people’s daily lives (i.e. a smart security camera detecting motion and immediately turning on the lights).
9/ Problem: Currently, machines (in the context of peaq, any connected vehicle, device, or robot) run on Web2 platforms created and controlled by a handful of large corporations, leading to a majority of value accrued being siloed into the hands of very few.
10/ Solution: peaq introduces an ambitious yet compelling alternative.In building out and powering EoT, peaq aims to align the incentives of all stakeholders, enabling all contributors to this new economy to have a true stake in the game.
11/ Anyone will be able to participate in the Economy of Things and have the opportunity to own, earn, and control the machines they utilize.
12/ In EoT, connected machines that were once simply tools for humans now have the capacity to be independent economic agents, capable of engaging in transactions and interactions with both people and other machines.
13/ We can think of IoT as machines becoming aware and being able to communicate with each other over the internet.EoT then represents machines gaining greater autonomy and becoming self-sufficient.
14/ EoT ultimately enables the extraction of new value from IoT, and peaq will equip all stakeholders in the ecosystem with opportunities to capture some of that value.
15/ Peaq ecosystem stakeholders:- Builders- Collators (Polkadot parachain node hosts)- Machines- New Machines (not yet registered via Self Sovereign Machine-Identity or SSMI)- LPs/Token Holders- peaq Treasury.
16/ How does peaq work:
peaq enables decentralized ownership of machines powering EoT via Machine NFTs and introduces Machine DeFi (DeFi for machines) to maximize returns for stakeholders.
17/ Peaq also provides several core functionalities including identity, access, and payment capabilities for DePINs and Machine dApps (essentially the same thing in most cases) built for the Economy of Things.
18/ Core Functions
peaq ID (SSMI) Enables machines to:
- Identify themselves amongst other machines and people
- Store and verify information about themselves
- Have access management and payment capabilities
19/ Peaq Access (Role-Base Access Control or RBAC)Enables machines owners to:
- Grant or deny access to goods/services
- Manage access rights in both the digital and physical worlds
20/ Peaq pay (Empowering Machines to Make and Receive Payments)All transactions by machines involving the action of buying or selling require payment. Thus, peaq pay enables all machines within the ecosystem to make payments as well as receive them.
21/ Tech Stack:Projects built using peaq's tech stack are able to connect with other Web3 projects within the Polkadot ecosystem and beyond.
22/
Why Polkadot? @Polkadot is a Layer 0 blockchain built to support and scale an ecosystem of specific purpose Layer 1 blockchains, providing several key benefits for the peaq Network to build and power the Economy of Things on top of it.
23/ Advantages:
- Native interoperability via Cross-Chain Messaging (XCM)
- Shared security for all parachains
- Enables many blockchains to conduct transactions at the same time (scalability)
- Forkless upgrades (smooth and seamless upgrades)
24/
- Built-in Token-based Governance
- Cross-chain composability
- Vibrant Ecosystem (multi-chain ethos and largest active developer ecosystem outside of Ethereum)
- Polkadot’s SDK Substrate
25/
- Parity and The Web3 Foundation (programs and grants to boost progress and stay on top of Polkadot ecosystem developments)
- Environmentally Friendly Blockchain
26/ Interfaces:
- peaq control (control center for connected machines)
- peaq app (a hub for all things peaq, currently working to include features enabling users to earn, vote, govern, and bridge to other blockchain networks)
27/ Token:$PEAQ is expected to launch this year (more details will be released regarding the token generation event in the coming weeks).
Total Supply: 4,200,000,00028/39
Tokenomics: Here’s a breakdown of $PEAQ’s token allocation:
8% Parachain Auctions
13% Ecosystem & Treasury
20% Community Offerings
38% Investors (10% pre-seed, 5% seed, 13% private sale, and 10% Series A)
19% EoT Labs/Team2% Advisory
29/
Concern: 59% of $PEAQ tokens are allocated for investors, EoT Labs/team, and advisors.peaq indicates that inclusivity and community-shared rewards are a crucial part of its tokenomics, however, a potential concern is that peaq might not be as decentralized as it claims.
30/ Token Utility:$PEAQ enables all core functions on the network and aligns the incentives of all stakeholders in the Economy of Things.Its functions can be broken down into four main categories.
31/ 1) EoT Operations:$PEAQ is used to cover transaction fees, deployment of smart contracts, governance, bridging, and collator rewards32/39
2) Machine DeFi:$PEAQ is used to provide liquidity, for liquidity mining, and used as rewards for network contributors33/39
3) Minting Machine NFTs:$PEAQ is used to mint Machine NFTs (convey partial proxy ownership and help align incentives)34/39
4) Machine Deployment:$PEAQ is used for the creation of machine identities and for the subsidization of new machines added to the network
35/ Use Cases: peaq introduces a wide range of use cases for DePINs and Machine dApps that could be developed for machines in the Economy of Things, spanning across land, sea, sky, and space (long-term vision).
36/ Here are just a few examples:
- Decentralized ride-sharing app owned/controlled by drivers and users.
- p2p selling of generated solar energy to distributors or users
- Lending out DIY machines (i.e. power drills) to people in need of them for one-off jobs
37/
- Crowdfunded and community-owned 3D printers to reduce costs
- Fully automated cafes owned and governed by the communities they serve
- Decentralized water monitoring systems via connected sensors where anyone could help provide data anywhere
38/ TL;DR: peaq is leading the transformation from web2 corporate-controlled IoT to web3 community-owned and governed EoT, introducing a vast design space and enabling new, interesting use cases to be unlocked.
39/ Huge shoutout to @nonieengel and @adlabossiere for their insightful feedback.
Here are some accounts to follow to keep up with project developments and ecosystem updates:@peaqnetwork @dorloechter @MaxThake @Old_Samster @yang_chunfu @cypher_capital @Polkadot @PolkadotSpace @kusamanetwork @parachains
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