Smart contracts in the Internet of Things

The Internet of Things will bring the era of everyday devices having the ability to connect with the Internet, and therefore to blockchain systems.

Currently, for example, your parcels can get lost in the post. In an Internet of Things connected world, with sensors every step of the way – from the shelf in the warehouse, flying through the air on a delivery drone, right to your doorstep – a fully self-automated system will ensure this doesn’t happen.

Each sensor forms its own node on a blockchain and Smart contracts can record “possession” of the device to each individual sensor (and subsequent location). A barcorde / NFC chip / other tracking device on the package will be read at each sensor on the way to your house. Each time it is read by a new sensor, it’s location is broadcast to and agreed on by all the IoT participants on the blockchain.

As each recording of the package’s location is encrypted into the blockchain in a specific order, there is no securer system for tracking packages. A smart contract then keeps tabs of “possession” all the way along the line, solidifying the trust of exactly where to find the package.