Specific Industries need IoT Sensors to Implement Smart Contracts

News • 2020/07/10 • by Remitano

Smart contracts are often deemed revolutionary by many blockchain enthusiasts. Smart contracts also enable many crypto projects to get government and enterprise contracts in various industries. However, some experts now believe that smart contracts need to be supplemented with IoT sensors. Otherwise, it might be considered not effective enough.

These experts from the universities claim that smart contracts can help solve problems but only partially. They claim that IoT sensors, in certain cases, would be able to help smart contracts in judging whether certain items (i.e. fruits) would be high quality enough based on conditions like the temperature of storage. The combination of IoT sensors and smart contracts would massively benefit these industries.

However, the study also claims that ultimately everything comes down to the legal cost. If normal standard contracts could be cheaper than creating and implementing smart contracts, most people would still use normal standard contracts. However, in some countries, the costs of smart contracts might actually be cheaper to be implemented in certain process automation.

Many traditional companies have been experimenting with blockchain technology alongside smart contract solutions. VeChain, IBM Blockchain, and others have been experimenting with revolutionizing the supply chain with the adoption of smart contracts.