Leveraging IoT and Blockchain Technology
In the case of risk management for nautical vessels , blockchain allows the implementation of seamless smart contracts enabled by oracles , through decentralized applications and a layer-one chain for settlement . Each insurance document becomes an NFT , accessible on-chain . Blockchain can store even the tiniest details of an insured event or policy contingency which can then trigger smart contracts into action . Every event can be added to the data of the NFT in an automated fashion as an update and , if not explicitly required , without human intervention .
A non-fungible token ( NFT ) is a unit of data , stored and secured on a blockchain , that creates a unique digital signature for a given asset and attributes proof of ownership . While some NFTs share attributes , each is irrevocably unique from every other NFT , beyond even its digital signature . As NFTs can provide proof of ownership beyond copyright for creative assets such as art and music , their use in the boating industry would primarily apply to physical assets such as vessels , engines , slips , and valuable gear .
Oracles are entities that allow interoperability between blockchains that link to external systems . By functioning as a bridge between on-chain and off-chain transactional data .
On-chain transaction refers to a transaction that is processed and stored with blockchain . These transactions are validated by all the network nodes to ensure the transparency , security , and validity of the network ' s public ledger . The nodes are formed by many devices , which are usually computers that collectively participate in and safeguard the blockchain network .
In contrast , off-chain transactions don ' t require the blockchain network to execute transactions , and the data isn ’ t publicly available . So , off-chain transactions only need the blockchain network for integration after the completion of transactions elsewhere . Like on traditional infrastructures .
Oracles provide a way for the decentralized Web3 ecosystem to access existing data sources , legacy systems , and advanced computations . Decentralized oracle networks ( DONs ) enable the creation of hybrid smart contracts , where on-chain code and off-chain infrastructure are combined to support advanced decentralized applications ( dApps ) that react to real-world events and interoperate with traditional systems .
Ahoy will utilize oracles hosted by the National Oceanic and Atmospheric Administration ( NOAA ), Accuweather , and the Weather Channel to provide trusted weather data to its smart contracts for its boating use cases . On the other hand , because boats themselves come equipped with onboard sensors and gauges to take measurements of wind and sea conditions , they can become oracles that gather data , which Ahoy can package up and sell back to these companies .
Journal of Innovation 81