Convergence of Blockchain, IoT, and AI – Part 1
Artificial intelligence, IoT, and blockchain are primary drivers behind the next generation of digital transformation.
Analysts are currently predicting that these tech will come together and enable new paradigms in business: self-driving cars, trucks, machines, autonomous cameras and other IoT devices – will function as their own profit centers that 1) have a digital twin utilizing IoT, 2) send and receive money utilizing blockchain tech autonomously, and 3) autonomously make decisions as standalone agents of the economy utilizing artificial intelligence and data analytics.
The confluence of these technologies will initiate the proliferation of such autonomous business models, and along with it, the cyber transformation of industrial corporations.
The three aforementioned technologies have been identified as innovations that have the prospect to enhance present organizational processes, develop fresh business models, and stir disruption across entire industries.
Blockchain is set to improve trust, security, the transparent nature and privacy of businesses and organizational processes by furnishing a common and decentralized distributed ledger.
A blockchain is a distributed ledger that can document any number of assets just like a register, and mostly, this information is connected to finances and identities.
IoT is behind automatizing industries and the user-friendly nature of business processes that is critical to West European industry.
The confluence of these three technologies is unavoidable. One potential connection could be as follows: IoT obtains and furnishes data, blockchain gives the infrastructure, and establishes the rules of engagement, whereas AI is behind the optimization of processes and rules.
These three breakthrough technologies complement each other and can leverage their complete potential when combined. The confluence of these three technologies holds potential for information management and the automization of of business processes we are going to dissect now.
The link between IoT, AI, and Blockchain
Until recently, blockchain was only implicated in the context of monetary transactions, for example, Ether, and Bitcoin. Recently, an increasing number of non-financial use cases for blockchain technology have come up – digital identities and supply chain management.
Newer literature specifies the value of fusing blockchain with other technologies such as AI and IoT.
Researchers have indicated the utility ot blockchain technology to enhance the system infrastructure of several IoT devices, particularly with regards to the quickness of transactions.
Research also focuses on blockchain in conjunction with AI technologies. The current focus has remained on combining blockchain with one another disruptive technology, either AI or IoT, rather than using all three technologies at the same time.
Enhancing standardization, security, privacy, and scalability of data.
IoT units regularly collect massive amounts of information, regardless of what kind of device they are. This info is recorded on a central server where the data format has not been standardized.
Organizations use various legacy systems that make it tough to obtain and analyze data cross platform.
Blockchain could assist with standardizing data by establishing a harmonious digital platform for IoT data obtainable by various parties. Data would then be stored in a singular data format.
Due to the utilization of hash functions, information on blockchain systems can usually be stored in a singular data format.
There are two primary storage options for blockchain-based data, these are on-chain and off-chain storage. On-chain storage has the benefit that information is always available on-chain and can be recovered from any node, at any time.
Storage requirements, are however, considerable, which causes the phenomenon known as ‘blockchain bloating’ where huge amounts of on chain stored data impact blockchain throughput and scalability.
Off-chain storage provides an alternative and documents the actual data off-chain storing only aggregate metadata on the chain. This has the benefit of being a lot more scalable than the on-chain solution but reduces data transparency.
Another aspect of blockchain platforms is the high degree of information privacy that can be initiated by the foundation cryptography. Blockchain transacctions are mainly carried out via pseudonyms, or in certain blockchains, carried out purely anonymously.
Blockchain enables complete encryption of documented and transmitted data to the point that only the gadget itself can read write its own data via private/public key infrastructure.
In IoT, units store massive amounts of critical data. It is critical to ensure privacy and security of this data.
IoT data is typically transmitted straight from the machine to the particular database where the information is collected.
This unencrypted data, however, does not ensure privacy. Blockchain can provide significant advantages in this regard, as blockchain technology has been created with security at it its basic core.
Cryptography and consensus mechanisms contribute to the high level of security of the blockchain. Blockchain improves data security by design.