Leveraging IoT and Blockchain Technology
accurate and formidable record keeping of blockchain technology . This could lower the extra $ 400-700 billion per year in premiums that the FBI estimates insurance fraud currently costs families . 12
In addition to financial benefits , personal security levels would also improve with cryptography ’ s superior ability to prevent the leakage of sensitive and personal data . Such protection would mitigate the push-back that off-chain insurance providers often encounter if a client feels uncomfortable sharing necessary personal information . 13
Ahoy ’ s potential to significantly increase financial , personal , and property security will have positive ramifications for boat owners well beyond the nautical industry . All told , the elimination of middlemen by way of decentralized marketplaces on Web3 and blockchain has the potential to save vast amounts of money , each year , in operating costs across any and every industry that depends upon complex logistics and data tracking .
A necessary part of innovation is overcoming challenges . Implementing Ahoy ’ s vessel relocation capabilities comes with its own set of difficulties , some of which are congruent to the challenges facing trusted IoT data for on-chain use as a whole , while some are unique to Ahoy ’ s approach to the nautical industry .
Credibility and trust are essential building blocks of any marketplace . Some insurers remain hesitant about cybersecurity even with the promises of the immutable blockchain . Some customers don ’ t trust the many adaptations and new competitors involved with new technologies . For Ahoy to establish credibility , there must be partnerships with existing boating businesses and boat owners . The on-boarding of enough participants to allow Ahoy ’ s ecosystem to run at full capacity may take time since society typically requires a lengthy period of education and adjustment before it embraces change .
Delays could also occur depending on the speed of IoTeX technology development . The primary limit for Ahoy ’ s needed processes are advances in software and hardware in the Web3 and oracle space . Additionally , regulations for smart contracts need to be updated and standardized for customers to use them with confidence . Only time will tell how , or to what degree , these contingencies will impact Ahoy ’ s development .
Integration may pose another challenge . When dealing with risk management , there is no room for miscalculations . Existing off-chain insurance contracts would need to remain in effect until
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Journal of Innovation 85