DePIN (decentralized physical infrastructure network) is predicted by many crypto analysts to be one of the hottest topics of 2024. Messari’s “Crypto Theses 2024” report mentions it as one of the De’s — the other two being decentralized science (DeSci) and decentralized social media (DeSoc) of the top 10 crypto investment trends for the present year. Cointelegraph predicts that the combination of DePIN and AI will 2024’s “power duo”.

Though DePIN is already a large market with $2.2 trillion of value, it is expected to reach $3.5 trillion within upcoming 3–4 years. Its connection to the current AI boom can be a major tailwind. Furthermore, the idea of decentralized technology is being embraced by big companies. Bosch, for example, with the collaboration with blockchain companies aims to build decentralized Internet of Things (IoT) within European Union. These are the reasons why I think any blockchain network focused on DePIN will perform well in 2024. As the leading DePIN-specific layer-1 chain — and, by the way, one of the collaborators of Bosch in the aforementioned decentralized IoT initiative — peaq has the potential of being one of the best layer-1 plays of the year.

Machine RWAs

We already wrote about DePIN protocols which build and maintain physical infrastructure for Web3. They incentivize users with tokens to provide data, computing power, hardware etc to contribute to this infrastructure. One concept that is emerging from the DePIN space is machine real world assets (RWAs) popularized by peaq network, a layer-1 blockchain network built specifically for DePIN applications.

From Internet of Things (IoT) to Economy of Things (EoT)

We have all heard of Internet of Things. The IoT is one of those concepts invoking familiarity even when one doesn’t fully get the idea. It refers to the network of physical objects, that is things, which are embedded with hardware (sensors) or software in order to connect with other similar systems and devices over the Internet. Economy of Things is the evolution of IoT; it differs from the IoT with one but crucial feature: in EoT, devices exchange not only information but also value. peaq network itself defines the term as “a decentralized network-economy built and owned by the people and machines that use it”.

We are surrounded by different kinds of vehicles and machines:

- Automobiles

- Wind turbines

- Solar panels

- Smart farming equipment

- Charging stations

- Robots

- Automated cargo planes

And this is by no means a comprehensive list. The concept of tokenization of Machine RWAs refers to digital tokens representing physical machines or devices offering products or services and in exchange earning money for their communities. For example, an average solar panel costs about $16,000 which is not a small amount for most of us. Machine RWA tokenization enables anyone to purchase a share of real device and deploy it by connecting it to the Economy of Things. This not only makes otherwise expensive devices and systems affordable but also creates value for users.

Or take a thermostat. It’s a simple regulating device measuring the temperature of a physical system and then taking some action based on that information. In the context of EoT though, a thermostat becomes more than a personal device component. By embedding it into a DePIN protocol, you can join a local or global weather data network. An ordinary thermostat now creates value for you allowing you to sell your weather data.

Fundamentals of peaq network

Now that we understand what peaq network strives to achieve, let’s look at the fundamentals of the peaq network. peaq aims to become the backbone of DePIN. peaq is built on Polkadot Layer 0 so it inherits Polkadot’s security and decentralization. Several upgrades, such as Polkadot 2.0 and asynchronous backing will enhance scalability and performance of Polkadot enabling it to handle almost 1 million transactions per second. Transaction lows are very low, $0.00025. This is the blockchain needed for physical infrastructure — cheap, secure, decentralized, and scalable.

Project collaborating with and building on peaq


ELOOP is a Vienna-based car-sharing service company which operates an electric car-sharing fleet. It’s the first company in the world allowing users to buy a fractionalized share of the fleet. By registering via the ELOOP ONE dashboard, and performing KYC check, a user can buy EOT token and thus earn income from daily rideshare services. In June 2023, ELOOP implemented the tokenization of about half of its fleet — which is a hundred Tesla cars — with self-sovereign IDs via peaq.


Silencio Network, a project aiming to build the global network to measure noise pollution, incentivizes users with NOISE coins to provide “hyper-local” noise pollution data. Noise pollution refers to the presence of unwanted sounds in the environment which can be painful and harmful to humans. In September 2023, Silencio stated that it starts working with peaq to broaden its reach. A network consisting of 35 thousand sensors was deployed on the peaq network to get local data from the customers on how loud their environment is. Building on peaq will help Silencio Network to deploy one million sensors in 2024.

DePIN functions

peaq has several built-in functions to facilitate DePIN developers to build on the network. Below are some of these functions:

- The critical foundation of the peaq network is Self-Sovereign Machine Identities, also called peaqID, which are a kind of decentralized identifier (DID) which distinguishes a particular machine from others. Self-Sovereign Machine Identities (SSMIs) are digital identities assigned to machines, devices and vehicles. They are decentralized identifiers (DID) attributed not to humans but to machines. peaqID enables a machine to function seamlessly in a decentralized machine economy and facilitates machine-to-machine transcation.

- The next building block of the network is peaq access which is a type of role-based access control (RBAC). If you identify machines, vehicles or robots with SSMIs, perhaps you want to some have access control on them especially in the process of building a dApp or DePIN. You may want to grant or block access to a particular machine in a car-sharing protocol. By integrating RBAC into your dApp ensures that only authorized machines have access to operations and resources.

- AI agents. peaq network leverages AI enabling developers to deploy’s AI agents to optimize business processes. One use case may be a Microagent connecting a car with the optimal parking spot selected per the driver’s criteria. Integrating AI and machine learning algorithms into a dApp or DePIN will result in machines more effectively serving for people and other machines.

- Machine NFTs. NFTs are what make Machine RWA tokenization possible. Tokenizing individual machines into NFTs enables crowdfunding and facilitates the distribution of ownership and revenue. In this sense, machine NFTs can be considered both the financial and the ownership layer of the physical devices they represent.

Apart from aforementioned features, the network offers many backend functionalities, such as data storage, machine payment processing, and data indexing.


DePIN (decentralized physical infrastructure network) is poised to be a major topic in 2024, as predicted by crypto analysts. peaq network, a leading DePIN-specific layer-1 chain is positioned to be a standout player in the near future. It introduces the concept of machine real world assets (RWAs), popularized in the DePIN space. This involves the tokenization of physical machines, allowing users to purchase shares and participate in the Economy of Things (EoT), where devices exchange both information and value.