Are they somehow able to determine position via dead reckoning? How does that account for errors from wind, vibration, etc. and compounding of errors over time? (I'm pretty sure dead reckoning is not a closed-loop system)
"Miniaturize a very accurate clock" seems like a fairly straightforward engineering challenge. "I can give you clocks as precise as you need, now design me a system that can give your coordinates in thick fog without GPS or any other external radio signals" seems like a much harder one.