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Can the Internet of things be used as a means of security authentication?

Is it possible to create an algorithm that would define a person based upon that person's proximity to the Internet of Things? Authentication for a particular person would depend on that person's location within the universe of things. As that person moved about and things moved in and out of the scope of authentication, the security key generated for that person would constantly change. Security validation would involve a security organization that would poll the universe of things and validate the users identity based upon where that person is located in the universe. I just thought about this a while back and was wondering if it is possible?