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Glossary

Blockchain-Enabled Smart Locks

November 21, 2023 - Around 4 mins mins to read

A smart lock is a connected device that can be controlled digitally from a mobile phone. It has gained popularity in homes, but consumer-grade smart locks are vulnerable to cybersecurity issues. To address these concerns, blockchain-enabled smart locks have emerged.

Blockchain-enabled smart locks are a new application of blockchain technology that offer enhanced security and programmability. These locks can be locked or unlocked based on the state of a variable embedded in a smart contract. The programmability and ability to link payment methods like tokens or oracles with the lock’s state enable new business models that were previously impossible due to security concerns.

One of the key advantages of blockchain-enabled smart locks is their versatility and security. By using a smart contract as the underlying logic layer, these locks can be connected to other blockchain-enabled applications and services. For example, the addresses associated with the lock can be tied to a digital identity, allowing tracking of individuals entering and exiting a location. This feature is particularly useful for homes, where guests or service people can enter even when the homeowner is away. Additionally, this technology opens up new commercial applications in offices, hotels, or rentals. Locks can be programmed to open when rent is paid or require multiple addresses to approve a state change for high-security purposes.

Aside from their programmability, blockchain-enabled locks offer enhanced security compared to traditional smart devices. Instructions to lock and unlock can be sent from anywhere in the world, and the inherent security of blockchain allows for collaboration and joint signatures without additional security infrastructure.

However, there are a few downsides to blockchain-enabled locks. They can be vulnerable to a loss of connectivity as they rely on access to a decentralized network of nodes. This means that if the network is down or experiencing issues, the lock may not function as intended. Additionally, losing the private key associated with the lock can result in being locked out without any recovery mechanisms. Public blockchains also pose potential issues of privacy and processing time, as transactions may be visible to anyone on the network and require confirmations from multiple nodes.

Despite these potential drawbacks, blockchain-enabled smart locks enable novel business cases with their programmability and connection to the token world. The ability to link payment methods and tokens to the lock’s state opens up new possibilities for secure access control and new business models.

For example, imagine a scenario where a vacation rental property is equipped with a blockchain-enabled smart lock. The lock can be programmed to automatically unlock when the tenant’s payment is received in the form of a cryptocurrency token. This eliminates the need for traditional key exchange and enables seamless and secure access for the tenant. Additionally, the programmability of the lock allows the property owner to set specific access permissions for different individuals or time periods, ensuring that only authorized individuals can enter the property.

Another use case for blockchain-enabled smart locks is in supply chain management. By integrating smart locks into shipping containers or storage facilities, companies can track the movement and access to their goods in real-time. The locks can be programmed to only allow access to authorized individuals or trigger alerts if there are any unauthorized attempts to open the lock. This improves transparency and security throughout the supply chain, reducing the risk of theft or tampering.

In conclusion, blockchain-enabled smart locks are a promising application of blockchain technology that offer enhanced security and programmability compared to traditional smart devices. By leveraging smart contracts and the token economy, these locks enable new business models and secure access control solutions. While there are potential drawbacks such as connectivity issues and the risk of losing the private key, the benefits and opportunities provided by blockchain-enabled smart locks outweigh these challenges. As the technology continues to evolve, we can expect to see more widespread adoption and innovative use cases for blockchain-enabled smart locks in various industries.

Author: Johannes Schweifer is the CEO of CoreLedger, a company empowering businesses of all sizes to access the benefits of blockchain technology. Schweifer co-founded several blockchain start-ups, including Bitcoin Suisse. He is a passionate problem-solver, holding a master’s degree in Chemistry and a PhD in distributed computing and quantum chemistry.

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Glossary

Blockchain-Enabled Smart Locks

A smart lock is a connected device that can be controlled digitally from a mobile phone. It has gained popularity in homes, but consumer-grade smart locks are vulnerable to cybersecurity issues. To address these concerns, blockchain-enabled smart locks have emerged.

Blockchain-enabled smart locks are a new application of blockchain technology that offer enhanced security and programmability. These locks can be locked or unlocked based on the state of a variable embedded in a smart contract. The programmability and ability to link payment methods like tokens or oracles with the lock’s state enable new business models that were previously impossible due to security concerns.

One of the key advantages of blockchain-enabled smart locks is their versatility and security. By using a smart contract as the underlying logic layer, these locks can be connected to other blockchain-enabled applications and services. For example, the addresses associated with the lock can be tied to a digital identity, allowing tracking of individuals entering and exiting a location. This feature is particularly useful for homes, where guests or service people can enter even when the homeowner is away. Additionally, this technology opens up new commercial applications in offices, hotels, or rentals. Locks can be programmed to open when rent is paid or require multiple addresses to approve a state change for high-security purposes.

Aside from their programmability, blockchain-enabled locks offer enhanced security compared to traditional smart devices. Instructions to lock and unlock can be sent from anywhere in the world, and the inherent security of blockchain allows for collaboration and joint signatures without additional security infrastructure.

However, there are a few downsides to blockchain-enabled locks. They can be vulnerable to a loss of connectivity as they rely on access to a decentralized network of nodes. This means that if the network is down or experiencing issues, the lock may not function as intended. Additionally, losing the private key associated with the lock can result in being locked out without any recovery mechanisms. Public blockchains also pose potential issues of privacy and processing time, as transactions may be visible to anyone on the network and require confirmations from multiple nodes.

Despite these potential drawbacks, blockchain-enabled smart locks enable novel business cases with their programmability and connection to the token world. The ability to link payment methods and tokens to the lock’s state opens up new possibilities for secure access control and new business models.

For example, imagine a scenario where a vacation rental property is equipped with a blockchain-enabled smart lock. The lock can be programmed to automatically unlock when the tenant’s payment is received in the form of a cryptocurrency token. This eliminates the need for traditional key exchange and enables seamless and secure access for the tenant. Additionally, the programmability of the lock allows the property owner to set specific access permissions for different individuals or time periods, ensuring that only authorized individuals can enter the property.

Another use case for blockchain-enabled smart locks is in supply chain management. By integrating smart locks into shipping containers or storage facilities, companies can track the movement and access to their goods in real-time. The locks can be programmed to only allow access to authorized individuals or trigger alerts if there are any unauthorized attempts to open the lock. This improves transparency and security throughout the supply chain, reducing the risk of theft or tampering.

In conclusion, blockchain-enabled smart locks are a promising application of blockchain technology that offer enhanced security and programmability compared to traditional smart devices. By leveraging smart contracts and the token economy, these locks enable new business models and secure access control solutions. While there are potential drawbacks such as connectivity issues and the risk of losing the private key, the benefits and opportunities provided by blockchain-enabled smart locks outweigh these challenges. As the technology continues to evolve, we can expect to see more widespread adoption and innovative use cases for blockchain-enabled smart locks in various industries.

Author: Johannes Schweifer is the CEO of CoreLedger, a company empowering businesses of all sizes to access the benefits of blockchain technology. Schweifer co-founded several blockchain start-ups, including Bitcoin Suisse. He is a passionate problem-solver, holding a master’s degree in Chemistry and a PhD in distributed computing and quantum chemistry.

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