The tutorial explores how the integration of IoT hardware and blockchain can enhance smart contracts, using an example of a decentralized library system that incorporates RFID technology via Chainlink external adapters. It highlights the potential of blockchain and smart contracts to secure and automate data from billions of IoT devices across various applications like supply chain management and digital agreement verification. Developers Aram Moghaddassi and Aaron Wasserman, awardees of the Chainlink hackathon, demonstrate how to connect an Arduino RFID scanner to Chainlink oracles, enabling real-time hardware interaction with smart contracts on the Kovan testnet without the need for physical hardware. The tutorial provides technical guidelines and principles for building hardware external adapters, emphasizing the importance of local operation for adapters and offering a glimpse into the future possibilities of hardware integration within the Chainlink community.