The Blockchain technology allows us to send assets in a Peer-to-Peer trustless way.
So why not develop an Internet of Things in the same way we developed an Internet of Information, an Internet of Communication and an Internet of Values ?
Furthermore, creating a Peer-to-peer C2C transportation system of objects is a way to share work and economic value inside a growing Community.
– Self-executing contractual states (smart contracts)
– Localization and events tracking of luggage or postboxes
– Deposit insurance
– A global Democratic Organization to serve a global and distributed Community
Delivery smart contracts
Smart contracts are self-executing contractual states, stored on the Blockchain, which nobody controls and therefore everyone can trust. They are computer protocols that can make traditional contractual clause unnecessary and even provide security superior to traditional contract law. Furthermore, smart contracts reduce other transaction costs associated with contracting. Smart contracts run on a global and decentralized machine (the Ethereum Virtual Machine). They are stored in a ledger that anyone can watch. There is no need of additional server and database for the storage of contracts. Smart contracts use digital assets for the payment of fee or deposit. Sender does not need to make a prepayment and receiver can easily buy a specific local product from or to a remote region. In this last case, the courier buys and sends the item to the receiver. Because all the characteristics of the item are predefined and stored in the Blockchain, disputes about the item should be rare. We think that this will allow reducing frontiers in particular with rural regions. For a delivery, the smart contracts are between physical or virtual objects (postboxes and luggage). Users and couriers “sign” the smart contract as owners of objects and have no legal obligation because of the smart contract. On the other hand, because objects do not lie and can be tracked, delivery smart contracts can check delivery conditions in a flexible, trustless and automatic way. For instance, the delivery conditions can foresee to reduce the return of deposit by 10% per day after a predefined date. The smart contract applies delivery rules with no need to go to court or make a complaint to insurance company.
Each traveler who wants to work as a courier just needs to use the courier application. He can even deliver parcels without any luggage. In that case, the luggage is “virtual” and as physical luggage has a specific public ID key. The courier can increase the quality of service fixing an electronic device into a “smart” luggage. The electronic device includes the next features:
- Micro sensors (temperature, magnetometer)
- GPS module
- Microcontroller and Cryptographic Authentication
- Low-energy consumption and low-cost communication with a global network
A user who wants to send or receive a parcel without necessity to meet the courier can use a physical smart postbox with a network connection, a digital scale, a camera and an unlocking system for the couriers (with their Blockchain private key for instance). If the sender wants to meet the courier, he can in the same way take a picture and weigh the parcel in attendance of the courier. If the receiver wants to check himself the parcel, he can meet the courier with the parcel. In these two cases, the postboxes are “virtual” and as physical postboxes have a specific public ID key.
The reputation tokens of the couriers involved in parcels transfer will be updated according to their accurate. For the senders and receivers, tokens are used for deposit insurance. Couriers will be able to transfer only packages with a price less than the reputation tokens they can lose in case of not or bad delivery. If the receiver does not receive the parcel, the sender receives valuable tokens of the person(s) in charge of the transfer of parcel and which were hold as insurance deposit. In this way, it will be more profitable for couriers to operate with urgently or to transfer expensive parcels, but will have more risk to lose some amount of their reputation.
The smart contracts, which are between physical or virtual objects, self-execute contractual states concerning the payment of fees and deposit insurance with tradable digital assets. It is important to note that because we have no contract between legal persons or entities, users or couriers cannot refer to the law in case of disputes concerning a delivery. For this reason, the courier should check that there is no prohibited items in the parcel before taking it. Furthermore, using smart luggage’s or postboxes will prevent many disputes given that these objects generate automatic events. With smart objects, disputes must be rare or easier to fix. Another point is the ability to store comments from users about previous courier services. Because contracts are between objects and not persons, it will be possible to publicize information of a delivery without infringing the right to privacy. This point will avoid many disputes, as couriers know that proved bad deliveries can damage the reputation of their service. However, we understand that it will be difficult to avoid any disputes using technical, smart or not smart, objects. In addition, we understand too that it could be easy to damage reputations giving information, which are not confirmed. Therefore, we think that it is important to allow a mediation, arbitration and resolution of eventual disputes. In case of dispute about a delivery, we suggest a decentralized consensual arbitration of the Community. Because it is decentralized, it means that no central authority can affect the decision. And because disputes will be rare, the shared cost for arbitration will be low.