The simultaneous implementation of Smart contracts and IoT sensors will reportedly help unlock the potential efficiency of smart contracts throughout different sectors.
Specifically, Stern School of Business Associate blockchain experts Hanna Halaburda and Yannis Bakos have reportedly presented their findings, regarding the interaction between smart contracts and Internet of Things (IoT) sensors, in making businesses more efficient, during the Unitize conference.
The research reportedly deep dived into the way “smart contracts will make the business landscape more democratic”, which reportedly will offer numerous benefits to all sides involved.
Nonetheless, the current solo implementations of the tech has reportedly displayed a few restrictions. Hence, the study concluded that IoT plays a crucial role in helping smart contracts reach its highest potential within the trade industry.
“It turns out they solve a problem, but only partially,” she said, “but what doesn’t happen, if we just add smart contracts, is the higher quality of delivery [of goods].”
Halaburda mentioned a case of a fruit shipping firm and a retailer, where the smart contract functioned as a viable tool for automated execution, but failed at incentivizing the shipping firm, to ensure fruit quality.
With IoT sensors involved, a smart contract can reportedly have enhanced detail or adjusted payments, based on the fruit delivered quality.
“If the legal costs are very low, then it never makes sense to implement smart contracts when the smart contracts are costly to implement. […] For a region when it makes sense to implement the [IoT] sensors, then adding smart contracts is not adding any more value.” Halaburda further added.