Blockchain Interoperability Solution in IoT

Sergey Nazarov, Chainlink Labs' founder, emphasized that the impact of the Internet of Contracts extends far beyond finance, reaching every aspect of society similar to the reach of the internet and information technology. Despite the common association of blockchain with finance due to tokenization and DeFi trends, it's crucial to recognize that blockchain as a global settlement system is applicable across various fields. An innovative example of this is the intersection of blockchain interoperability and IoT networks in the global trade sector.

A fragmented record reconciliation system with poor interoperability creates friction in global trade. The proposed solution involves connecting IoT networks with blockchains, where designated applications reside. In this process, IoT devices send data from the edge, and data is transferred via blockchain bridges to destination chains, triggering specific actions in smart contracts to initiate subsequent global trade process.

Vodafone and Chainlink collaborate on a solution, creating a unified interface for seamless data and value exchange across public and private blockchains and IoT networks. They demonstrated how trading companies can expedite cargo movement by seamlessly transferring a digital bill of lading—a legal cargo receipt—among multiple parties across different blockchains, reducing unnecessary delays using Chainlink’s CCIP and Vodafone’s DAB.

The above interdisciplinary example reminds me of the crucial work done by Professor Bhaskar Krishnamachari and his colleagues at Center for Cyber-Physical Systems and the Internet of Things (USC). In the future, where vehicles act as autonomous agents with their own incentives, the physical systems they reside will need to:

🤝 Have an economic layer for them to coordinate, negotiate and transact (i.e. vehicles can negotiate with each other, pay a fee to take a shorter route during traffic congestion)

🌉 Have interoperability between the physical and virtual systems (i.e. vehicle crashed, sensor sends real time data via blockchain interop solution to initiate insurance process on a blockchain)

Final thought: Web3 could be our modern Industrial Revolution, unlocking productivity through connected systems of autonomous machines, both physical and virtual. Unlike previous revolutions that transformed humans into tools, we might now be witnessing a new era reminiscent of the Renaissance, aiming to reduce dehumanization (think of Charlie Chaplin on the assembly line⚙ in Modern Times) and allowing us to live as complete human beings ❤️