The goal of the TERAPAN project is to demonstrate the feasibility of THz communication with data rates of up to 100 Gbps over a distance of 10 m in indoor environments using cost efficient monolithically integrated transceivers. The project builds on the expertise of the project partners, who have already demonstrated data transmission of 25 Gbps in the frequency range of interest for fixed point-to-point links. Simulation of the propagation characteristics has shown that data rates of up to 100 Gbps are feasible using high-gain antennas in conjunction with beamforming. The demonstrator built within the TERAPAN project will enable the validation of the concept for future THz based personal area networks.