Verification of data generated by wearable sensors is increasingly becoming of concern to health service providers and insurance companies. There is a need for a verification framework that various authorities can request a verification service for the local network data of a target IoT device. In this paper, we leverage blockchain as a distributed platform to realize an on-demand verification scheme. This allows authorities to automatically transact with connected devices for witnessing services. A public request is made for witness statements on the data of a target IoT that is transmitted on its local network, and subsequently, devices (in close vicinity of the target IoT) offer witnessing service. Our contributions are threefold: (1) We develop a system architecture based on blockchain and smart contract that enables authorities to dynamically avail a verification service for data of a subject device from a distributed set of witnesses which are willing to provide (in a privacy-preserving manner) their local wireless measurement in exchange of monetary return; (2) We then develop a method to optimally select witnesses in such a way that the verification error is minimized subject to monetary cost constraints; (3) Lastly, we evaluate the efficacy of our scheme using real Wi-Fi session traces collected from a five-storeyed building with more than thirty access points, representative of a hospital. According to the current pricing schedule of the Ethereum public blockchain, our scheme enables healthcare authorities to verify data transmitted from a typical wearable device with the verification error of the order 0.01% at cost of less than two dollars for one-hour witnessing service.