Written by: 0xjs@Golden Finance
On May 9, 2024, Coinlist announced the launch of the 1st layer DePIN public chain Peaq token PEAQ community public sale. The public sale time is from 17:00 on May 9, 2024 to 17:00 on May 16, 2024 UTC time.
The Peaq network is a multi-chain layer 1 blockchain built and optimized for DePIN and Machine RWA, and PEAQ is the native utility token of the Peaq network. As previously reported, Peaq has raised $15 million in funding.
On May 13, Coinlist interviewed Peaq, and the Peaq team answered questions of concern to the community, such as what is Peaq, Peaq technical indicators, PEAQ token utility, actual use cases on Peaq, and why Peaq attracted DePin.
8 questions The Peaq team will personally guide you to fully understand Peaq.
1. What is peaq?
peaq is a layer 1 public chain focused on DePIN and machine RWA (real world assets). Peakq is leading a global infrastructure revolution that enables people to own and profit from mobility, energy, connectivity, environment, agriculture and digital infrastructure. It is home to more than 25 applications in 10 industries and more than 400,000 devices, vehicles, machines and robots (machine RWA) running on it. peaq is a permissionless, borderless digital infrastructure that allows increasingly intelligent machines to serve 100% of all mankind, achieving rich democratization in the era of AI and work automation.
2. What problems and opportunities does Peaq solve?
Automation is expected to eliminate up to 375 million jobs by 2030, while the rise of generative AI is expected to add an additional 12 million jobs in the U.S. Millions of people are at risk of losing not only their jobs, but their livelihoods. Automation is already here, but it’s only available to a limited circle at the top.
Positioned at the intersection of the IoT (expected to grow to $650 billion by 2027), AI (expected to exceed $350 billion by 2027), and Web3 industries, Peaq envisions a more democratic and equitable future based on individual ownership and empowerment. As a blockchain for real-world dApps, Peaq aims to make everyone a stakeholder in the distributed automated economy (the IoT economy) that is taking shape before our eyes. As the home of DePIN, decentralized applications that use tokens to incentivize people to crowdsource and build connected real-world physical infrastructure, Peaq enables communities to own and run the machines that serve them.
Examples of projects peaq is already supporting to make automation more inclusive include the world’s first tokenized robotics café launched at TOKEN2049 in Dubai, which enables token holders to earn rewards for every cup of coffee it sells. Other major examples include Silencio, a crowdsourced noise pollution data network with over 200,000 users, and ELOOP Network’s tokenized Tesla car-sharing service.
3. How does PeaQ solve scalability-related issues?
Peaq's current fundamentals provide a solid foundation for long-term growth and expansion:
Transaction throughput: Peaq’s network initially supports approximately 10,000 transactions per second (TPS), providing strong performance from the start. Looking ahead, Peaq is expected to achieve theoretical scalability of over 500,000+ TPS thanks to cutting-edge enhancements such as asynchronous support, elastic scaling, and agile core time.
Nakamoto coefficient: 90. Peaq leverages the security and decentralization of Polkadot Core, thereby inheriting a high Nakamoto coefficient. This is the highest score among major Web3 ecosystems, indicating a high degree of decentralization and resilience.
Transaction cost: $0.00025. PeaQ offers low transaction fees to the ecosystem, making it the perfect home for micro-transaction-intensive applications that leverage real-world machines.
Block time: 6 seconds. In theory, by leveraging the power of up to 24 cores, peaq has the potential to significantly reduce this block time to approximately 0.25 seconds.
Additionally, peaq leverages the most sustainable technology stack in Web3 and, due to its EVM compatibility, taps into two of the largest developer communities in Web3.
4. What is the function of PEAQ token?
Like any other layer 1 public chain token, the main purpose of PEAQ is to enable some of the most basic interactions on the network: paying transaction fees, generating blocks in a censorship-resistant manner through staking and penalty mechanisms, and managing the network.
Transaction Fees: PEAQ is used to pay transaction fees on the peaq blockchain. The amount of PEAQ required for any particular transaction is calculated based on the weight, length, and other parameters of the transaction. As with other layer 1 blockchains, it is not possible to use the network without PEAQ, as transactions cannot be made without paying PEAQ fees. Just like dApps on Ethereum, all transactions on DePINs on peaq will require fees in PEAQ. The millions of machines, vehicles, and sensors in these DePINs are expected to generate millions of transactions.
Network operation: PeaQ relies on the work of Collators and Delegators for block production. To ensure that blocks are produced in an honest, censorship-resistant and reliable manner, Peak has a staking mechanism with a penalty mechanism that incentivizes the honest work of Collators and Delegators and punishes their dishonest behavior. Collators need to provide a staking deposit to run a Collators node to "skin in the game". If Collators misbehave, such as censoring transactions or generating false blocks, their stake will be punished. Delegators can delegate their stake to Collators of their choice to support them. Only those Collators with enough support (stake) can produce blocks. Therefore, Delegators actively manage which Collators are producing blocks, so that trusted and well-run Collators can be ensured to be active. If a Collator misbehaves or goes offline, its Delegators will stop earning money and even have their delegated stake slashed. Therefore, Delegators need to constantly check the behavior of Collators and actively manage their stake distribution.
Network Governance: Holding PEAQ will allow you to gradually guide the project by voting on key decisions regarding its development and future through on-chain governance.
Reputation System: Machine owners will be able to stake PEAQ tokens as an additional guarantee of their machine’s trustworthiness.
5. What is machine RWA? What benefits does it bring?
Machine RWAs are on-chain representations of real-world machines that create value or certain rights for those machines. They enable individuals, communities, and businesses to raise or provide cross-border liquidity for innovative projects that have real-world impact, and earn returns from real-world services and value. With real-world supply and demand mechanisms, Machine RWAs provide a more sustainable alternative to more speculative Web3 assets. They also support the application of traditional business metrics to tokens, simplifying investor decision-making.
6. What are some actual use cases that have been implemented or are planned to be implemented on the Peaq Network?
Here are some of the 25 projects that have already built on Peaq as its layer 1 blockchain:
ELOOP Network: enables communities and businesses to tokenize their value-generating machines. It has already built a Tesla sharing fleet in Vienna, allowing token holders to earn rewards every time someone books a Tesla ride.
XMAQUINA: is building a tokenized platform for revenue-generating autonomous robots and has partnered with ELOOP to launch the world’s first tokenized robot café on peak.
penomo: is building a tokenization platform for green energy assets, enabling cash-strapped sustainable businesses to tap into borderless Web3 liquidity.
Wingbits: is building a DePIN consisting of community-owned antennas that collect location data of aircraft in the area. It allows you to earn rewards for participating in Web3 Flightradar.
ATOR: is building a DePIN for anonymous web browsing - it's like TOR, but more decentralized and easy for anyone to join.
Silencio: We are building a DePIN for measuring local noise pollution with your phone. It is easy to participate, and you can earn rewards for collecting anonymous noise data.
7. RWA is all the rage in crypto right now, what’s the most interesting trend?
While RWAs have certainly gained traction as a major Web3 asset class, they are most often thought of as on-chain representations of traditional financial instruments, such as stocks or bonds. While it’s true that such implementations make TradFi instruments more accessible and liquid, it’s important that Web3 thinks beyond these assets. Web3 enables us to verifiably own things in a peer-to-peer manner — anything from smart sensors and network hotspots to robots and self-driving trucks — and redistribute the value created by those things through trustless, on-chain mechanisms. This enables novel forms of ownership and co-ownership of dynamic, value-creating real-world assets — not just run-of-the-mill stocks and securities — and this is exactly what PeakQ was born to do.
8. Recently, some DePIN projects have migrated to Peaq and integrated with it. What is the reason?
Just in the past few weeks, three projects announced migrations to Peaq:
MapMetrics: is a leading Web3 drive-to-earn application previously built on Solana.
Farmsent: is an agriculture-focused DePIN that connects farmers to local businesses without centralized middlemen, previously built on Polygon.
dTelecom: An innovative DePIN used as a live streaming and real-time communication layer for applications and dApps, previously built on Arbitrum.
In the coming months after the mainnet launch, more DePINs will announce their migration to Peaq.
Among the reasons other projects migrated to PeaQ, the most commonly mentioned were:
1. Strong foundation and huge expansion potential provide DePIN with affordable, fast and reliable transactions required for deployment and expansion. Peaq's throughput is currently 10,000 transactions per second, which can be expanded to 500,000+ TPS, with a minimum fee of only $0.00025 and a block time of 6 seconds, which may drop all the way to 0.25 seconds. In addition, Peaq's Nakamoto coefficient is 90, the highest indicator in Web3, which means a high degree of decentralization and security.
2. As an EVM-compatible Substrate-based blockchain, peaq provides maximum developer friendliness, catering to the two most popular Web3 developer ecosystems, including the first and second most active developer communities. It also supports ink! smart contracts and Solidity, which makes it easily accessible to Web3 builders.
3. Peaq’s modular DePIN capabilities provide pre-made building blocks for DePINs that can be used as part of their architecture, enabling them to build faster. Features include:
peaq ID, a multi-chain autonomous Web3 identity for machines, robots and devices,
peaq access, a role-based access management protocol for machines and devices in Web3,
peaq Pay, seamless peer-to-peer machine payments in the IoT economy,
peqq-verify, a comprehensive three-layer machine data verification framework for DePIN,
peaq store, a data storage and management platform for Web3 applications,
AI Agents, Fetch.ai’s autonomous AI agent software.
4. Peaq’s collaborative DePIN ecosystem provides excellent machine composability by enabling partnerships, collaboration, and rapid integration using the same identity standards.
5. Peaq’s DePIN-friendly enterprise ecosystem enables DePIN to collaborate with leading industry brands to expand their demand.
6. Peaq’s DePIN enthusiast community, which is excited about new projects in the field, thus benefiting early adopters and also helping DePIN build its supply side.
7. Peaq's multi-chain Web3 strategy enables extensive cross-chain interoperability and bridging, enabling DePIN on Peaq to cover the entire Web3 field extensively. When you build on Peaq, you build for all Web3 - this is important when you are trying to cover as many people and machines as possible. Through Wormhole, Peaq bridges with more than 30 blockchain ecosystems, and Peaq ID is compatible with Ethereum, Polkadot, BNB Chian, Cosmos, and Solana.
8. The Peaq Foundation provides DePIN on top of Peaq funding to support their development efforts and provide them with additional expert support, networking and fundraising opportunities, and various other benefits.
9. Peaq's economic model is oriented towards DePIN needs and is carefully designed to meet the imminent reality of increasing automation, ensuring that as machines become more common in our daily lives, they can be seamlessly integrated, operated, and prospered in the peaq ecosystem. Peaq incentivizes not only node hosts, but also machines, DePIN, dApps, liquidity providers, and communities that connect their devices to the network. The rewards for all these network participants will come mainly from transaction fees and block rewards. This enables DePIN on Peaq to enhance its own incentive mechanism and expand faster than other ecosystems.
10. Peaq is one of the most energy-efficient chains in Web3 and uses the most environmentally friendly technical framework in the industry.
11. Peaq’s sister network KREST acts as a production-level incentivized sandbox for Peaq-based projects, enabling DePIN to perfectly test its projects before launching them on the mainnet.
