Yesterday we announced our brand new content calendar. If you’ve read the article you know that we are posting our Trends In Blockchain today. There are a lot of trends in the field. One of the most important trends of 2018 is definitely the combination of blockchain, AI and IoT. In this week’s topic we’ll explain what AI and IoT are. We’ll then focus on the opportunities in combination with blockchain.
Artificial Intelligence (AI)
Most people define AI as the theory and practice of building machines capable of perceiving the environment and taking action accordingly. In order to make this happen there are three main technologies: machine learning, artificial neural networks and deep learning. People have three main reasons why they want to implement AI. Either they want to use it as a model to get systems working, without figuring out how human reasoning works (“Weak AI”). Or they want to use it to build systems that think exactly like humans do (“Strong AI”).
AI & Blockchain
There are also three most common solutions that blockchain has to offer AI. First of all encrypting AI. AI could benefit from this security when dealing with sensitive, personal data. AI needs this data to unlock valuable information. A good example are smart healthcare systems that need to make accurate diagnoses based on our medical scans and records. You don’t want anybody to know your records, but you do want the smart healthcare system to make the right decision.
Secondly blockchain offers the opportunity to track, understand and explain decisions made by AI. This is very important when the AI system has analysed billions of datapoints. For now human have to approve the AI decision-making, if we can’t track what variables affected the AI we are probably searching for months to find it.
The last benefit of combining AI and blockchain is the fact that AI is capable of managing blockchains way more efficiently than humans can do at this time. We build computers that are quite fast, but very inefficient. It takes a lot of processing power when you’re trying to find every possible combination of characters for your hash to verify a transaction. AI could manage tasks in a more intelligent way, getting better every time it solves a code.
The big trend that actually came before AI is The Internet of Things (IoT). You could describe IoT as a network of physical devices, vehicles, home appliances, and other items. All of these items have electronics, software, sensors, actuators and connectivity. These electronics enables these devices to connect and exchange data with each other. By exchanging data the systems are creating opportunities for more direct integration of the physical world into computer-based systems, resulting in efficiency improvements, economic benefits, and reduced human exertions.
IoT & Blockchain
Just like AI and blockchain, IoT and blockchain can be rather beneficial. The number one reason to implement blockchain into IoT is the same as for AI: security. The Internet of Things as we know it has to deal with a lot of security challenges. All the devices have to interact but nobody is allowed to interfere. Once again the encryption that blockchain has to offer comes in handy.
IoT applications are by definition distributed. Therefor it should be logical that the distributed ledger technology (blockchain), will play a role in how devices communicate directly between each other. Blockchain offers you the possibility to keep a ledger that know how the IoT devices interact, in which state they are and how they are handled (in case of tagged goods).
Last on our list is the efficiency. Blockchain is designed as a basis for application that involve transactions or interactions. These can include smart contracts or other smart applications that support specific IoT processes. The blockchain technology can improve not just compliance in the IoT but also IoT features an cost-efficiency.
Blockchain, AI and IoT
So blockchain, AI and IoT can improve each other on three points: Security, Tracking and Efficiency. Combining these three elements we are optimizing our future. When do you think blockchain, AI and IoT become the world standard? Let us know in the comments! In case you might wonder, this is what Forbes thinks of combining the three. For now we hope you have a cryptastic day!