Enhancing IOT-driven logistics solutions using blockchain-based smart contracts

Abstract

Modern logistics monitoring solutions increasingly depend on the integration of IoT devices for real-time data collection, shipment tracking, goods and vehicle monitoring, and informed decision- making. However, current IoT-based logistics systems face significant challenges, including complex data management, limited interoperability among stakeholders, and inefficiencies resulting from centralized control mechanisms. Blockchain technology has emerged as a promising solution to address these critical issues within logistics and supply chain management. This paper presents a comparative analysis of traditional centralized logistics systems and blockchain-based decentralized solutions, emphasizing the evaluation of blockchain’s strengths such as transparency, immutability, and automated transaction execution via smart contracts and its weaknesses, particularly scalability limitations and implementation complexity. The research specifically examines how smart contracts can effectively manipulate IoT-generated data to automate logistical transactions and ensure secure, transparent data management. Through a structured analysis, this article identifies specific scenarios in logistics where blockchain technology adds significant value and discusses key practical considerations for its effective adoption. Additionally, this research critically evaluates Ethereum Virtual Machine (EVM)-based smart contracts and proposes AWS Hyperledger Fabric smart contract (chaincode) as a more scalable and cost- effective alternative for enterprise logistics applications. The study provides valuable insights and guidelines for logistics practitioners, facilitating informed decision-making about integrating blockchain solutions to enhance operational efficiency, trust, and interoperability within complex supply chain environments.