July 17, 2023

Why you should build your DePIN on a multi-chain layer-1 blockchain

In a nutshell: Lone chains, like lone wolves, only last for so long. To live up to its true potential, Web3 has to give up the one-chain-to-rule-them-all mentality. Instead of sticking to their native ecosystem, layer-1 blockchains — the blockchains between the Layer-0 (Security & Interoperability) and Layer-2s (Scaling Layers, dApps & DePINs) — must strive to link with as many peers as possible. This would result in one open, seamless Web3 brimming with innovation, value, and opportunity for all. peaq’s push for a Web3 Economy of Things is rooted in this vision, which impacts its core architecture and integrations.

Read on to learn why DePIN builders joining the ecosystem have a lot to benefit.

Imagine the world collectively decided that travel power adapters were evil. So was travel, global trade, and anything international at all. Everyone just sits in their respective locality and minds their own business. 

Doesn’t sound too exciting, right?

That’s how Web3 has been shaping up to be. By default, most blockchains are usually standalone networks. They are quite aware of everything that is happening on-chain, dutifully keeping track of everyone’s tokens. 

As for anything happening off-chain, though, — and a transaction on blockchain 2 is very much off-chain for blockchain 1 — they are pretty clueless, at least without the help of a data relaying tool called an oracle. By the same account, they don’t let you move your tokens to some cool DeFi service on another blockchain. Or, at least not without using a bridge first. 

Some projects embrace this maximalist vision of a closed-off ecosystem snubbing everyone else as irrelevant. This approach seems to replicate the Web2 'walled gardens', the closed device ecosystems that run on Big Tech's terms. Essentially becoming who they might even call the enemy.

This is not to say that Web3 as it is right now is full-on siloed. It’s not, and in fact, a hefty part of the space, such as the aforementioned bridges, is working to make it more interconnected. Behind such initiatives is a shared understanding of a simple truth:

A more connected Web3 means more opportunity, innovation, and liquidity for all

In terms of its core economics and functions, such as self-sovereign machine IDs and peer-to-peer payments, peaq is mission-specific, its mission being to become the backbone for the Economy of Things (EoT) and the DePINs and dApps that it consists of. For layer-2 EoT dApps and decentralized physical infrastructure networks (DePINs), peaq is a general-purpose chain in the sense that it is open to any mission-specific (decentralized mapping, Web3 ride-hailing, community-powered Web access, etc.) dApps and DePINs. 

But the ultimate goal is to make peaq something more than that. With its vision of an interconnected Web3, peaq aims to be a multi-chain platform for building machine-focused dApps and DePINs. The projects running on peaq will be seamlessly linked with the entirety of Web3. 

A space walk with AI agents

You may remember we recently unveiled our Multi-Chain Machine Identities, powered by Fetch.ai’s AI agents. Here is a quick video explaining how they work.

Multi-Chain Today, Multi-Chain Tomorrow

“peaq’s multi-chain Machine IDs, powered by Fetch.ai’s AI agents, are a great example of how true Web3 interoperability can create more value for all stakeholders and ecosystems. I am excited to see its implementation in the connected mobility industry.”

— Peter Busch, Project Lead for Gaia-X 4FM moveID, and Product Owner for Distributed Ledger Technologies (Mobility) at Robert Bosch GmbH at Bosch.

The Multi-chain Machine IDs announcement was very much in line with how we see Web3 and its future, and what peaq will grow into. peaq will be a foundational layer for dApps and DePINs that connects them to as many blockchain ecosystems as possible. Interoperable identities, cross-chain interactions and data exchanges, eventually, bridges and integrations are all coming with future updates.

We strive not just to preach Web3 interoperability, but actually make it happen. In fact, this comes down to some of the most fundamental architecture of the project. After all, at its core, peaq is natively compatible with both Substrate and Ethereum Virtual Machine smart contracts.

We are already working on bridges with some other major chains with the end goal of enabling asset transfers. Stay tuned.

“A multi-chain approach to Web3 is crucial for DePIN projects as it allows them to do more with less. It grants greater accessibility, openness, and versatility for the project, and peaq’s push for enabling it natively makes seizing these benefits easier for builders.”

— Alireza Ghods, co-founder and CEO of NATIX, the company behind the move-to-earn DePIN Drive& recently integrated with peaq.

What does all of this mean for DePINs building on peaq? 

In short: more devices, more users, more liquidity, and more utility. Here’s how that works:

  • More devices: peaq’s multi-chain identities and other cross-chain connectivity features make it easier for devices on other networks — and working with other DePINs — to join your DePIN as well. This means you can leverage pools of connected hardware that’s already out there, scaling harder and faster than if you had to build yours from scratch. 
  • More users: The above applies not to devices, but to users as well. With peaq’s Web3 interoperability, you’ll have an easier time reaching out to communities around device-powered projects on other chains.You can offer them easy access and solid functionality alongside peaq’s Modular DePIN Functions and DePIN-specific benefits such as machine rewards for connected device owners. Such communities will need no protracted explainers of what DePINs are and will have an easier time appreciating what you have to offer. 
  • More liquidity: In Web3, with greater reach, comes greater liquidity. By tapping into more ecosystems, you can attract more capital flowing in with new opportunities, new users, and more demand for your project and its capabilities.
  • More utility: By tapping as the peaq multi-chain foundation for your project, you can give your community more utility on their tokens through easier integrations with multiple DeFi protocols across different blockchain ecosystems. These projects will work as your power multipliers, replacing the zero-sum logic of the maximalist position with a win-win scenario.
“peaq’s vision for Web3 interoperability is fully aligned with others, and its implementation opens new and exciting opportunities for the project. We are curious to experiment with the multi-chain Machine IDs and see what other similar features will be released next.”

— Ugochukwu Aronu, co-founder and CEO of Wicrypt, a Web access DePIN that integrated with peaq.

All of this ultimately means that DePINs building with a multi-chain vision in mind will be able to outscale their maxi-oriented peers by bringing additional competitive edges to the table. peaq is growing with such projects in mind, and its design will enable them to do what they do with a minimal amount of headache. No more walled gardens — this garden will blossom free and wild.        

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