# The Rise of Smart Technology and the Internet of Things

In 2007, the launch of the iPhone revolutionized the concept of “smart” technology for the general public. Although the notion of a smartphone debuted in the 1990s, it was Steve Jobs and his team at Apple who transformed the iPhone into the groundbreaking device that introduced the “smart” prefix to a multitude of fields.

Smartphones have transcended merely making phone calls; they allow users to browse the internet, watch videos, purchase desired goods, and communicate with other smart devices. By integrating traditional telephones with networks, these devices have achieved functionality far beyond simple telephony.

Following the smartphone, other devices such as smart watches, smart TVs, and smart homes have similarly transformed our daily lives. This convergence of physical devices with network connectivity is termed the Internet of Things (IoT).

# Challenges of IoT in Today’s Tech Landscape

However, the current state of IoT exhibits significant limitations in interoperability and user convenience. Imagine embarking on a journey within a futuristic smart city powered by IoT. First, you’d need to install and sign up for an application to book a flight, then repeat the process with another app for a ride-share service. If you need to charge an electric vehicle, yet another app installation is required, each with separate authentication protocols.

This cumbersome process during a smart city tour exemplifies the broader problem: IoT platforms, dominated by big tech companies, lack seamless integration. Presently, Web2 applications monopolized by tech giants each operate within isolated environments offering services such as flight booking, car rentals, and identity verification independently. Consequently, users are forced into siloed ecosystems, facing a disjointed and inconvenient experience.

Solving this issue requires devices to function harmoniously across various applications. Existing big tech firms integrate all services within their networks to expand their business and solidify monopolies, leading to problems such as stifled innovation, data dependency, and reduced competition that drives up costs.

To avert such a dystopian scenario, a platform enabling a decentralized network—where no single entity holds ownership—along with smooth device interaction is essential. Blockchain technology offers a decentralized, distributed network solution, although it doesn’t inherently solve IoT’s interoperability problems. Peaq Network, however, is a blockchain specifically designed to address these challenges.

# Peaq Network: Ushering in the Era of Economy of Things

Peaq is a Layer 1 blockchain optimized for IoT. It enables seamless collaboration and autonomous interaction among machines, vehicles, robots, and other devices within an integrated ecosystem. In a Peaq-enabled smart city, a single travel plan involving both a flight and a car rental would be autonomously managed by AI without further human intervention.

The transition from a traditional IoT model to the Economy of Things (EoT) is marked by devices not only exchanging data but also autonomously generating economic value. Unlike earlier IoT implementations, where devices served merely as tools, EoT enables devices to function as independent economic entities, creating and managing revenue autonomously.

# Bridging to the Future of IoT with DePIN and Machine DeFi

Applications in the Economy of Things, unlike traditional big tech-driven platforms, are community-owned and managed, thus adopting a decentralized architecture. These decentralized applications (dApps) are integral to the EoT, and Peaq facilitates two main types: DePIN and Machine DeFi.

1. **DePIN (Decentralized Physical Infrastructure Network)**: This system uses blockchain to allow smart devices to fulfill infrastructure roles and receive rewards. Unlike centralized infrastructure, DePIN enables devices to offer physical and digital services independently, thus sustaining the network without central oversight. Examples include smart homes, drone delivery, and EV charging stations.

2. **Machine DeFi**: This concept extends decentralized finance (DeFi) to the EoT, enabling financial transactions among devices without intermediaries. Machine DeFi encompasses decentralized exchanges, lending platforms, and stablecoins, allowing devices to tokenize assets and generate revenue through financial activities.

Peaq Network leverages DePIN and Machine DeFi to propel the Economy of Things forward, transforming devices into autonomous economic actors. This shift promises a seamless interaction between devices and users, enhancing user experience while creating an open ecosystem independent from big tech monopolies.

# Why Peaq Network is the Optimal Blockchain for EoT

Despite the possibility of building DePIN-like applications on generic blockchains such as Ethereum or Solana, Peaq stands out due to its tailored design for EoT applications. Its key strengths include high performance, economic model adjustments for non-human agents, and specialized features for EoT.

Peaq’s high-performance blockchain can handle substantial usage, processing over 10,000 transactions per second currently with theoretical scalability up to 500,000 transactions per second, while keeping transaction costs minimal. Additionally, Peaq’s economic model considers the unique operating patterns and value mechanisms of devices, ensuring each device can establish its own identity and function as an independent economic entity.

Peaq’s modular DePIN features, cross-chain compatibility, and standardized device identification (peaq IDs) cater to the specialized needs of EoT. These features enable developers to quickly implement backend functions and facilitate device interoperability across different blockchain networks, offering a seamless user experience.

# The Future of the Economy of Things with Peaq Network

Peaq Network transcends the traditional “smart” IoT label, leading us into an era where devices autonomously interact and generate economic value. This framework simplifies user interactions by integrating diverse services into a cohesive experience, liberating users from the complexities of multiple app installations and data entries.

Through superior user convenience and an open ecosystem free from big tech dominance, Peaq aims to shape a future where humans and devices enjoy an interconnected, mutually beneficial relationship. As Peaq strides towards this vision, its infrastructure could become the cornerstone of the evolving Economy of Things.