Today, we will be taking a look at the Peaq Network and the ecosystem that is currently being built on top of it. If you have been keeping track of narratives in the crypto space, you may have heard of DePIN, also known as Decentralized Physical Infrastructure. In my opinion, this sector is one of the most exciting in the blockchain space and brings real-world applications to life.
The Peaq Network is a layer one blockchain that is coining itself as “the blockchain for real-world applications.” It is a project I’ve been watching for a while now due to its involvement in a number of initiatives including Gaia-X which I will cover later on in this article. That’s enough introduction for now, let’s dive right into the Peaq Network and the opportunity it presents.
Now, as we all know with the rise of AI and smart technology, many jobs are threatened and potentially replaceable. Corporations will benefit from this transition due to automated tasks that will improve the efficiency of their workers. If all plays out as expected, it will be tough for everyday consumers to capture a cut of this transition. You could invest in stocks to try and pick winners. Or, what if I told you that there was a way to invest directly into the underlying technology that will power a permissionless, decentralized network for these projects to build on. Well, that’s where Peaq comes in, and with it, the more value these AI-powered machines create, the more you can earn. Sounds pretty cool, right? Let’s take a look at the fundamentals of this project, and see if they have what it takes to pull off their ambitious mission.
Meet the Peaq Team:
Whenever I start a project analysis, the first thing I like to look at is the team behind it. This gives you an idea of who you are putting your investment in the hands of and can see their qualifications. Although there is no direct team page on their website, I was able to find a handful of them on LinkedIn. For some quick background, EoT Labs is an incubator for projects building in the Peaq Ecosystem. Peaq and EoT Labs were originally under the Advanced Blockchain AG umbrella but were both bought out later on. You will notice all the founders of Peaq are heavily involved at EoT Labs. I think this is huge for the ecosystem and gives them a chance to incubate the next generation of products for the Peaq Ecosystem. In other words, they’re not just building Peaq, they are helping to build an entire ecosystem around it.
- Max Thake – Co-Founder of Peaq, CMO at EoT Labs. He has been involved with the Sigma Squared Society for the past four years, an invite-only global community of the world’s most ambitious founders under 26. Also a member of the Forbes Technology Council, and former Head of Marketing at Advanced Blockchain AG.
- Till Wendler – Co-Founder of Peaq and CEO of EoT Labs. Advisor to Penomo, a smart contract based platform for the EV battery business. Previously CEO at Axiomity AG, a distributed ledger project and Head of Operations at Advanced Blockchain AG.
- Leonard Dorlöchter – Co-Founder at Peaq and CPO of EoT Labs. He is a member of Sigma Squared Society and an advisor to a handful of companies. He originally started as Head of Product at Advanced Blockchain AG when Peaq was first started under its umbrella.
As you can see, this team is very well-versed in space and has devoted the past four years to the Peaq project and ecosystem. They are also backed by a number of advisors with previous executive roles at massive names like Cisco, JP Morgan, Skype, Blockchain.com, Deloitte, Volkswagen, Proctor and Gamble, and Dyson. This is a very stacked list of advisors, showing not only the potential they see in the project but the well-versed backgrounds they bring to the table. It is very clear that this team has the connections, experience, and backing to take this project to the next level.
If you want to explore the team and advisor list you can do so here.
The Tech:
Now, let’s dive into some of the tech and the applications of the Peaq platform. Peaq is a multi-chain L1 blockchain optimized for Decentralized Physical Infrastructure Networks (DePIN), which stands out in the blockchain landscape with its robust and feature-rich tech stack. One notable aspect is its Nakamoto Coefficient of 93, showcasing an exceptional level of decentralization within the network. If you’ve never heard of the Nakamoto Coefficient, it is a measure of a blockchain’s decentralization, representing the minimum number of nodes required to disrupt the network. As a comparison, Solana sits around 20 while Avalanche is around 26. Both are generally low in comparison to Peaq.
At the core of Peaq’s technology is its ability to scale beyond 10,000 transactions per second (TPS) while maintaining a low transaction cost of approximately $0.00025. The use of Rust smart contracts further enhances the efficiency and security of the network. The Peaq SDK in JavaScript enables developers to access a wide array of backend functionalities seamlessly, empowering DePINs and decentralized applications (dApps) with essential core features.
Peaq inherits its security and decentralization attributes from the Polkadot Layer 0, ensuring high levels of economic security provided by validators through Shared Security. The network achieves scalable throughput, capable of handling up to 1,000,000 transactions per second, thanks to updates in Polkadot 2.0. Transaction fees are kept remarkably low by utilizing the economical blockspace provided by Polkadot Layer 0.
In terms of sustainability, Peaq adopts a green blockchain architecture. By leveraging the nominators and validators of the Polkadot Layer 0, Peaq eliminates the need for miners, contributing to reduced energy consumption. The platform also taps into the extensive Web3 communities of Ethereum and Polkadot for its developer ecosystem, offering EVM support and the ability to seamlessly build on Peaq.
Key features of Peaq’s blockchain include PeaqIDs (MachineIDs), providing specialized identifiers for machines, devices, and robots in Web3, enabling decentralized digital identity based on the DID standard. The access control functionality (RBAC) ensures secure network access by restricting it based on user roles. Peaq Pay simplifies payments between machines and users, while data indexing and block explorers offer multiple options for querying blockchain data. They also just recently released machine data verification, which ensures that data is accurate and untampered. This is a large leap for AI in general as inaccurate data leads to inefficient models.
Peaq’s integration with Fetch.ai’s autonomous agents facilitates the deployment of AI agents on the network, optimizing and automating business processes in the Economy of Things. Machine NFTs represent unique digital representations of individual machines, enabling ownership distribution and crowdfunding. Additionally, Peaq implements a multi-tiered approach for secure and decentralized verification of physical machine data in DePINs, further enhancing the network’s overall security.
In conclusion, Peaq’s versatile and secure blockchain addresses various aspects of the Economy of Things, including machine identity, access control, payments, data querying, AI integration, machine tokenization, and a robust verification process. With its exceptional Nakamoto Coefficient
and innovative features, Peaq stands as a prominent player in the decentralized blockchain landscape.
Partners and Initiatives:
The Peaq Team has lined up an extensive list of high-quality partners and initiatives. It is truly impressive and exciting to see some of the names that have been brought on board. To start, we will dive into the Bosch partnership. Bosch is a massive engineering and technology company headquartered in Gerlingen, Germany. The company earns a whopping 88.2 billion EUR in revenue per year. Peaq and Bosch are heavily involved in the Gaia-X initiative, but in more recent news they also released an all in one DePiN sensor in a joint venture with Bosch and Fetch.Ai. This sensor allows for users to deploy and capture data from their surroundings. It monetizes a number of valuable data streams earning passive income for its users. It has 8 sensors in one frame and utilized FetchAi’s AI Agents to optimize the owner’s rewards. This is really big for the future of Decentralized Physical Infrastructure and shows that the team is already delivering on this partnership. They are also involved together in the MoveID initiative. This is where the partnership with Airbus and Continental have also been developing. All five of the companies just mentioned are working on a powerful alternative to big tech. The goal is to build a sovereign digital infrastructure enabling secure, connected, and open mobility. This is direct from the Gaia-X Website: “Mobility services with high privacy and security requirements are developed as part of Gaia-X 4 moveID. These decentralized solutions and technologies, such as digital identity concepts, are essential to prevent ecosystems with lock-in effects and high windfall profits by monopolistic platform intermediaries.” Overall, this is some really exciting stuff and I am bullish on all projects involved!
Peaq is also involved in the MOBI Consortium, a group of Web3 companies collaborating with some of the largest companies in the world to build out a blockchain-based mobility platform. More specifically, one project Peaq is currently involved with at MOBI is the Electric Vehicle Grid Integration project. “EVGI I defined the interoperable systems necessary for seamless grid management, carbon offset calculation, and carbon credit generation, facilitating the implementation of P2P services. EVGI II is reevaluating initial EVGI standards and working on pilots, including Vehicle-to-Building communication for charging and storage.” In a nutshell, this is some really massive stuff. Names involved include Accenture, Ford, AWS, IBM, GM, Honda, among others. Truly innovative stuff here, and I highly recommend keeping an eye on the MOBI and Gaia-X projects as there are a number of blockchain companies involved. On the forefront of innovation for space.
Projects Building On Peaq:
Let’s take a look at some of the projects building in the Peaq Ecosystem. I will add links for each of them so if you want to dig into each you can. For now I will just give a brief overview.
Silencio – “Silencio, a decentralized physical infrastructure network (DePIN) comprising more than 35,000 smartphones working as noise pollution sensors, taps peaq as its layer-1 blockchain. This integration will help combat noise pollution with Web3 citizen science.”
Eloop – “ELOOP has outfitted 100 Teslas in its car-sharing fleet serving almost 100,000 registered users with peaq IDs, connecting them with the peaqosystem and the wider Web3 and allowing anyone anywhere to invest in these Teslas and earn from their revenues.”
Natix – “A privacy-first organization focused on AI and IoT real-world use cases, is joining peaq to build decentralized physical infrastructure networks (DePINs) which leverage AI-powered sensors. As part of the integration, it will tap peaq’s Self-Sovereign Machine Identities for its drive-to-earn Drive& DePIN.”
Staex – “Any DePIN building on peaq can tap Staex as a versatile connectivity layer, making it easier for builders and the community to connect and manage entire machine fleets and scale faster.”
As you can see, there are a number of promising projects already utilizing the Peaq ecosystem for their DePiN Projects. The EoT Labs Team continues to incubate projects and push partnerships that will take this ecosystem above and beyond. I would highly recommend diving further into this ecosystem as this just scratches the surface.
What is the Krest Network?
Before we dive into tokenomics, lets take a look at Krest, the canary network of Peaq. It is similar to what Kusama is to Polkadot. Projects can deploy their applications on the Krest network as a simulation space that mimics the Peaq mainnet. This allows them to test experimental projects, and perfect before launching on mainnet. It also has faster governance allowing for quick innovation and runs its own machine simulations. This allows projects to go from idea to product swiftly.
The reason I touched on Krest before the tokenomics section is because the KREST token is currently live while PEAQ is not.
PEAQ and KREST Tokenomics:
The Peaq token is currently unreleased, but if you want to get a share of the project early on, the KREST token is currently live and will entitle you to a Peaq airdrop. It has pumped a staggering 3887.2% since its inception and demonstrates the hype behind the ecosystem.
Currently, it sits at a market cap of around $21 million with a circulating supply of 51m Krest. Max supply sits at 400M Krest. One thing to keep in mind is only 12% of the supply is currently circulating, meaning there is likely some token releases on the way.
To decide if this low circulating supply is concerning to investors, let’s look at the release schedule.
As you can see, there are plenty of quality initiatives set in place to distribute the remaining tokens. Although, over the next four years, there will be a lot of tokens with the potential to hit the market which could impact overall price growth. With such a high-quality project, it is entirely possible demand exceeds supply, and this token continues to pump.
Token Utility:
Both tokens have similar utilities in their respective ecosystems. Firstly, every transaction conducted on the network incurs a fee, payable exclusively in the given token. This mechanism ensures consistent demand as they are indispensable for any interaction on the network. Beyond transactional utility, the tokens serve as the cornerstone of on-chain governance. Token holders wield the power to participate in crucial network governance decisions, fostering a decentralized and democratic decision-making process. This governance model ensures that the network’s evolution aligns with the collective interests of its community. Moreover, the tokens are instrumental in the staking mechanism employed by the network. Collators, responsible for block creation, and delegators, who support trusted collators to maintain censorship-resistant blocks, are rewarded for their contributions. This incentivization scheme ensures the robustness and efficiency of the network’s consensus mechanism. Looking ahead, the network aims to implement a Machine Reputation System, wherein machine owners stake tokens to vouch for the reliability and quality of their services. This system will enhance trust within the network by penalizing underperforming machines through token slashing and rewarding high-quality service providers. As you can see, there are plenty of use cases for the Peaq and Krest tokens. When it comes to an investment, utility should be always considered as there needs to be demand driven to the token. The Peaq team has done a great job of ensuring consistent demand for Peaq and Krest to facilitate healthy growth with the project.
Wrapping Up:
This project is incredibly promising. With an active and well-fit team, major partnerships, and consistent innovation, Peaq has a very bright future. I personally do not own and Peaq tokens at the moment but will keep an eye out for a proper entry. The DePiN space as a whole is bound to see some major growth over the next decade and Peaq seems to be at the forefront. It is a great way to capture value from these innovations and get involved in the future of physical infrastructure. Thanks for reading, don’t forget to subscribe to our newsletter below and follow us on X to never miss a beat and support our blog. Hope you enjoyed this one, plenty more on the way.
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