We have seen that Smart Contracts are simply a way to execute program code distributed over a network. This achieves the data integrity guaranteed by the respective blockchain platform. But how does this fit in with the hype in the IoT area (e.g. the automatic cold chain monitoring with fines mentioned in the introduction)? In such cases, the Smart Contracts consistently manage monetary clearing units (crypto currencies).
For example, a Smart Contract could be set up for a refrigerated container that is to be transported from Singapore to Amsterdam. This implements the monitoring of the maximum permitted temperature fluctuation range (which the logistics company guarantees) and at the same time an automatic penalty payment in the event of a deviation.
The really interesting and new thing about blockchains in the Bitcoin news
The Bitcoin news contract could be designed in such a way that an IoT sensor reports the temperature to the Smart Contract every hour during the entire transport and a deviation from the agreed temperature range immediately provides for a further blockchain transaction to transfer a settlement currency as a penalty payment. This is further explained by onlinebetrug.
Blockchain networks, which automatically handle decentralized electricity deliveries, are also similar combinations of IoT sensors with Smart Contracts in the background. (Basically, the term “Smart Contract” is based on such concrete advance agreements that do not require manual or even judicial follow-up and are implemented in a purely technically automated manner.
The really interesting and new thing about blockchains is that they allow the creation of completely decentralized structures. Network participants no longer have to agree on a central, trustworthy location, but only on the content of the Smart Contracts. These then run decentrally in the blockchain network. Not only for the logistics sector, but for all market areas, there is hope that market participants will be able to implement digitization processes without restricting their autonomy by choosing a central processing organ (possibly from a pool of competitors from the same industry).
And I personally find that extremely exciting
Ingo Rammer is a speaker at the Blockchain Technology Conference from 19-21 November in Berlin. There you can gain practical experience with international experts. There will also be live demos and case studies of real implementations, individual interaction with experts and networking opportunities with people from various industries. You can also expect a variety of sessions, workshops and short presentations from international speakers.
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Ingo RammerIngo Rammer is one of the founders and managing directors of Thinktecture AG and has been supporting developers in the use of new technologies for almost twenty years. His focus is the hype-free use of blockchain technologies in the B2B environment, especially in private networks based on Hyperledger Fabric or Parity.