An introduction to peaq network

@WillySon23

Peaq is a highly interoperable Layer-1 blockchain which features decentralized, IDs compatible with the Polkadot ecosystem, Cosmos, Solana, and Binance Smart Chain and is bridged to dozens of blockchains through its integration with Wormhole.

The goal of peaq is to be able to manage, configure, and control machines, empowering everyone to own and manage smart machines in a decentralized way. When we talk about management, we include concepts such as configuration, operation, payment management between machines, and between machines and people.

In simple terms, peaq can be described as a network that enables machines or IoT devices to interact with each other or with people. Let’s look at a simple diagram for now.

Up to this point, it seems that this solution doesn’t differ much from any multinational corporation with a massive database connected to the internet. One of the major differences, however, is that it is a public and decentralized blockchain. As we will see later, this is precisely one of the major differences that peaq presents, which leads to significant benefits for those who choose to work with peaq.

As of March 2024, peaq has a Nakamoto Coefficient of 90, which it inherits from Polkadot’s score by leveraging its security and decentralization. This is the highest score among major Web3 ecosystems. The higher the Nakamoto Coefficient on a network, the more resilient the network is to all types of attacks. And the more resilient the network is to these attacks, the more decentralized and censorship-resistant it is. In other words, this coefficient is a good indicator of the degree of decentralization of the network. For comparison, this coefficient is 21 on Solana and 2 on Ethereum

How is communication done?

A device has installed hardware and software that understands the blockchain’s “language” and delivers data and configurations to the entry point. This entry point stores data on the chain or reads it from the chain before delivering it to the device. For example, MapMetrics. This use case in DePIN, instead of collecting map data and offering it for free like other centralized solutions, collects data just like them but sends it to a decentralized network, ensuring that your browser data and settings (typically on a smartphone) are safe within the network. You decide what happens with your data, and the network rewards you for its use and data collection. Additionally, your data remains private because we must remember that when something is free… you are the product and so are your data. Another of the benefits of working on a blockchain instead of a centralized system. If your provider (centralized) goes out of business, your device access, management, and other services may follow.

But what if there are a lot of devices reading and writing? Will the system slow down? The network can handle more than 10,000 transactions per second (TPS) while keeping a minimal transaction cost of about $0.00025.

But how can I know it’s my device? How come no one else in the world can control it besides me? For example, each device in the peaq ecosystem is assigned a unique identity known as the peaq ID.

peaq ID

Web3 introduces a unique identification for machines, devices, vehicles, and robots. It is based on the W3C’s Decentralized Identifier (DID) standard, which enables verifiable and decentralized digital identity. We may compare it to our computer or device’s ID card.

peaq ID has numerous uses, including:

• Enabling machines to identify and authenticate one another.

• Facilitating machine transactions.

• Verifying machine activities.

• Ensuring privacy and control over the machine.

By implementing the DID standard, peaq ID creates a strong framework for machine IDs on the peaq network and beyond. It facilitates communication between many types of machines, encouraging interoperability and seamless integration.

In other words, the peaq ID is the device’s unique identifier. The document of device identification

peaq Access

Once the device is connected to peaq and assigned an identifier, peaq Access allows us to regulate how the device and network are accessed. It provides for the simple setting of access limits, which limit the operations that may be conducted, i.e., managing both the machine’s operations and who can access or issue commands to the machine. Once the device is connected to peaq and assigned an identifier, peaq Access allows us to regulate how the device and network are accessed. It provides for the simple setting of access limits, which limit the operations that may be conducted, i.e., managing both the machine’s operations and who can access or issue commands to the machine. Operations of payment between machines or between machines and people can even be carried out thanks to peaq pay.

peaq Pay

peaq’s payment functionality simplifies payments between machines or between machines and users. When interacting with DePINs, users often encounter challenges in ensuring that the service is completed in its entirety. For DePINs, the challenge lies in ensuring that the user’s wallet holds sufficient funds to cover a service. peaq Pay helps address this issue by implementing a three-stage process:

• Creation of a multi-signature wallet: The service consumer must deposit a certain amount required for the service.
• Funding the multi-signature wallet: This is accomplished using the sender’s existing wallet on the network.
• Approval of refund and expenditure transactions: This occurs following the completion of a charging session.

Multichain Environment

Devices connected to peaq have full access to several chains. As a Polkadot parachain, we can exchange with the entire Polkadot ecosystem and perform native XCM transfers.

On the other hand, peaq has native EVM support. Native EVM support means you can deploy Solidity smart contracts on the EVM side of the chain. Ethereum will be accessible via Wormhole.

This capability allows any application built on peaq to quickly connect to other chains contained in these parameters. To develop this capability, it is crucial to understand the concept of Multi Chain Machine ID, a unique identifier that is not only valuable for peaq but also for many different networks, allowing machines to retain their identity across multiple networks. This is similar to saying that your passport is valid and recognized as identification for opening bank accounts in many countries around the world.

Multi Chain Machine ID

Expanding further on the concept of peaq id

At the heart of blockchain evolution lies the quest for interoperability, enabling diverse networks to communicate and interact. Peaq’s Multi Chain Machine ID system represents a significant advancement in this direction. The core idea revolves around a unified address that facilitates seamless navigation across platforms. At its core, peaq’s system establishes a way to map and store key relationships between different blockchain addresses. This central Substrate address within the peaq network establishes correlations with addresses in a multitude of blockchain networks, thus cultivating a cohesive ecosystem that reflects the broader trend of harmonizing distinct blockchain universes. Imagine this as a table that establishes the relationship between the machine’s identity in peaq and the same identity “written” in a way that other networks understand.

This comprehensive address mapping allows users to traverse various platforms effortlessly. Essentially, peaq’s Multi Chain Machine ID system propels the blockchain space toward a future characterized by seamless integration and user-centered experiences.

Cosmos: The Cosmos ecosystem, adopting the Bech32 address format, establishes a linkage with peaq’s SS58 Substrate-based address through the multi-chain ID system. By mapping these distinct addresses, machines within the Cosmos network can seamlessly interact with entities in the Polkadot ecosystem and vice versa.

Solana: Solana, characterized by its Base58-encoded string, also integrates well with peaq’s multi-chain ID system. By establishing a connection with peaq’s Substrate address, entities in the Solana network can engage in seamless cross-chain interactions.

Binance: Binance, using BIP32 for its addresses, connects to the broader ecosystem through peaq’s Multi Chain Machine ID system. Users with a Substrate-based address on peaq can link it to their Binance addresses, allowing for smooth navigation between platforms.

Fetch.ai: Fetch.ai, known for its autonomous agents, uniquely integrates with peaq. The integration between peaq and Fetch.ai leverages the latter’s autonomous agents to facilitate cross-chain data exchanges. When a user creates a Machine ID on peaq specifically for Fetch.ai, what we call an autonomous agent is initiated within Fetch.ai’s Agentverse. This agent periodically sends requests to the peaq blockchain, collecting data associated with the linked address.

Basic development concepts for peaq

We now know that peaq is a blockchain that can be linked to other chains, but how can we use it?

peaq was created as a chain to enable the rapid development of DePIN applications.

What is DePIN?

It literally means Decentralized Physical Infrastructure Network, which refers to the provision of basic services such as processing, storage, and communication in a decentralized manner. Without a physical location to store everything. For example, if you store your files on a computer, even if they are in the cloud, it is centralized. If the data is stored on a blockchain, it is decentralized. DePIN intends to do this by decentralizing the supply of essential infrastructure.

A DePIN is a decentralized application that uses tokens to incentivize people to crowdsource and build connected real-world physical infrastructure.

How do you make an application on peaq?

You don’t have to start from scratch when developing a peaq application. Assume you want to make an application to install electric car chargers, but when someone connects to the power socket, they pay the owner of the connection.

To accomplish this, you must establish the “charger” device and assign it attributes like as location, connection to the power grid, power given to the connected automobile, time… oh dear! This becomes complex. Assume that someone has previously built “objects with properties, characteristics, and operations that can be performed on devices.” And all you need to do is say, “Create device type X with these properties.” And you already have the charging device. You establish the costs and the method of identification, and you can begin working on your application because many components are already in place for you to construct your value proposition without having to operate at a low level on the network.

This is roughly what is known as SDKs or Pallets, for example.

SDK: Software Development Kit

To meet the needs of application developers, peaq created an SDK with the goal of offering a standardized set of fundamental functionalities for producing DePIN. peaqś SDK is regularly improved and expanded in response to the demands and feedback of active developers on the peaq /krest networks.

Pallets

The peaq /krest networks are constructed using Polkadot’s usual Substrate platform. Substrate Pallets enable blockchain developers to extend the runtime’s functionality by adding new modules, either via the Substrate Marketplace or built by blockchain developers themselves. The peaq and krest networks actively use open-source pallets and create their own. To put it simply, these are pre-built code blocks that allow you to reuse what peaq has already generated, making application development easier.

It’s important to note that there are several ways to develop and use smart contracts on peaq:

• EVM Smart Contracts: Users can write smart contracts in Solidity or port their existing contracts from Ethereum or any other EVM-compatible chain. These can be deployed on the peaq network without modifications. Additionally, developers can use the same set of familiar tools for building, testing, and deploying contracts on peaq.
• ink! Smart Contracts: In addition to Solidity smart contracts, developers can also use Rust to write ink! smart contracts or port their existing ink! contracts from other Substrate-based chains.
• Substrate Pallets: Substrate offers the ability to extend blockchain functionalities with its modular components, similar to Lego blocks. This allows for seamless addition of new features to live blockchains for expanded functionality. Visit the Substrate marketplace to find applicable pallets developed by the community.

Glossary of Terms

Public Blockchain: This is a blockchain where anyone can access and view the data, and even become one of the validation nodes.

Private Blockchain: This is a blockchain where only a selected group of individuals can validate transactions, typically controlled by the owning company determining who can validate.

Decentralized Blockchain: A blockchain where there is no central node. The degree of decentralization can be measured in many ways, with the most common being the concentration of validators.

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