The peculiar synergy of Blockchain, AI, and IoT for an intelligent future
Jul. 21, 2023. 9 min. read.
This article investigates the confluence of Blockchain technology, Artificial Intelligence, and the Internet of Things, as well as the potential for the integration of these technologies to alter numerous parts of society.
The basic principles and philosophy of Blockchain, AI, and IoT
The Blockchain is a distributed digital ledger that records transactions in a secure manner and maintains the integrity of data. It facilitates transactions between peers without the need for a trusted third party – thereby removing the need for intermediaries and lowering transaction costs. (Pilkington 2016) 1Pilkington, Marc. 2016. Blockchain Technology: Principles and Applications. Edited by Xavier F. Olleros and Majlinda Zhegu. N.p.: F. Xavier Olleros and Majlinda Zhegu. https://ssrn.com/abstract=2662660.
The term Artificial Intelligence – AI – refers to computers and software that are able to learn, reason, and carry out activities that would normally require human intellect. (Copeland 1998) 2Copeland, BJ. 1998. “Artificial intelligence (AI) | Definition, Examples, Types, Applications, Companies, & Facts.” Encyclopedia Britannica. https://www.britannica.com/technology/artificial-intelligence.
The Internet of Things – IoT – refers to commonplace hardware objects connected to the internet. This gives the devices the ability to gather and share data, which ultimately results in improved productivity and usability. (Rouse 2020)3Rouse, Margaret. 2020. “What is the Internet of Things (IoT)? – Definition from Techopedia.” Techopedia. https://www.techopedia.com/definition/28247/internet-of-things-iot.
IoTs gather, Blockchain stores, AI processes
IoT devices collect data from their surroundings and then transfer it to a digital world where Blockchain technology, Artificial Intelligence, and the Internet of Things are all intertwined.
This information is safely stored on the Blockchain, which protects it from being altered and guarantees its legitimacy.
Then, AI systems access and process the data, using it to enhance current practices, create brand-new hypotheses, and unearth previously unknown information.
The ways in which we collect, store, and make use of data have been revolutionized by IoT devices. Integrating these devices with Blockchain technology and Artificial Intelligence can open up even more opportunities. IoT devices produce massive volumes of data by collecting information from the world around them. This data can then be evaluated and used for a broad variety of applications because of its versatility.
Blockchain technology guarantees that this data will be preserved safely – therefore establishing its veracity and dependability. The Blockchain – which functions as a decentralized digital ledger – offers users a platform that is both open and reliable for the storage and exchange of data. Because of this, people, corporations, and other types of organizations may feel certain that the data they rely on is accurate and has not been tampered with in any way.
After the information has been safely stored on the Blockchain, AI systems will be able to access it and study it using advanced methods and algorithms. These systems can find trends, make predictions, and find insights that human experts might have missed because they only have one point of view. By combining data from many different sources and analyzing it in real-time, AI systems can give useful insights that can help people make decisions, improve business processes, and even create completely new goods and services. This can be done by looking at the data as it is being collected.
The three cutting-edge technologies are all converging to change the data cycle. By using these technologies in unison, businesses and individuals may be able to learn more about their surroundings and make more informed decisions. There is a significant amount of space for innovation and growth, and the potential outcomes are almost unbounded.
Why IoT – is it really needed and viable?
The Internet of Things is essential in the modern world because it enables greater levels of automation, efficiency, and connectedness. IoT technology will become more commercially feasible and efficient as the number of linked devices continues to increase. It is quickly becoming an essential component of the ongoing technological transformation in many different fields and facets of everyday life. (“What is IoT: The Internet of Things explained” 2022)4“What is IoT: The Internet of Things explained.” 2022. McKinsey. https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-the-internet -of-things.
The human-machine connection
There has been tremendous growth in the interaction between humans and machines throughout history. Tools used by hand and other basic mechanical devices date back to this time period. Powerful AI algorithms can now understand and respond to human emotions, and Internet of Things devices can now monitor and enhance our daily lives.
The foundations of this connection are built on the symbiotic interaction between humans and technology, in which machines increase our capabilities and improve our lives, and in which humans, in turn, invent and refine these technologies. (Floridi 2019)5Floridi, Luciano. 2019. “The Logic of Information – Luciano Floridi.” Oxford University Press. https://global.oup.com/academic/product/the-logic-of-information-9780198833635?cc =us&lang=en#.
The divide between man and machine continues to narrow as research in this area advances. Technology’s pervasive presence in our lives has made it easy to take it for granted. From smartphones to autonomous vehicles, technology has become an inseparable part of our daily lives. Nevertheless, with such interdependence come serious ethical and cultural concerns – such as how automation will affect jobs and whether or not technology will be utilized for evil. (Morozov 2019)6Morozov, Evgeny. 2019. “Evgeny Morozov, Digital Socialism?, NLR 116/117, March–June 2019.” New Left Review. https://newleftreview.org/issues/ii116/articles/evgeny-morozov-digital-socialism.
It is essential that we weigh the consequences of our choices as we move through this dynamic environment.
Automated efficiency and control
Automated efficiency is crucial for a variety of reasons. It encourages greater productivity, which allows individuals and organizations to do more with the same amount of resources. It might also lead to significant savings, which would free up funds for investment
in development and innovation. Automation has the ability to improve the quality of life by freeing us from mundane tasks so that we may devote more time to those who matter most to us.
The combination of the three technologies has the potential to one day enable the automation of many aspects of our lives, ranging from our modes of transportation to our medical care. Blockchain technology provides a transparent, distributed ledger that protects data from being tampered with, which may help ease concerns about centralization and trust. These technologies will always be under the control of humans, who will guide their development and choose how they should be used ethically.
AI practical applications in IoT
Artificial Intelligence has numerous practical applications in the IoT field, such as predictive maintenance for machinery, optimizing energy consumption in smart homes, or even improving traffic flow in cities. AI can analyze vast amounts of IoT-generated data to identify patterns, make predictions, and provide actionable insights, leading to increased efficiency and improved decision-making.
It can be used to analyze data from sensors in manufacturing plants to predict when equipment is likely to fail, allowing for preventative maintenance and reducing costly downtime. Additionally, AI can optimize production schedules based on real-time data, improving overall productivity and efficiency.
Another example could be how AI can analyze data from smart homes to optimize energy consumption by adjusting heating and cooling systems based on occupancy patterns and weather forecasts. This can lead to cost savings for homeowners and a reduction in energy consumption overall, contributing to sustainability efforts.
It can also be used in healthcare, where wearable devices and other IoT sensors can collect vast amounts of data about patients’ health and wellness. By analyzing this data, AI algorithms can identify patterns and make predictions about potential health issues before they become serious. This can lead to early intervention, better treatment outcomes, and reduced healthcare costs. It can help healthcare providers make more informed decisions by providing personalized treatment recommendations based on a patient’s unique health data.
AI algorithms can be designed to only access and use necessary data while keeping other sensitive information confidential.
Blockchain decentralized networks creation – identity, access, and ownership
Secure and transparent data sharing among IoT devices is possible thanks to Blockchain technology, which can be used to create decentralized networks for these devices. It can aid in managing device identity, access, and ownership, which helps to prevent unauthorized access and guarantees that users retain ownership of their data. This makes Blockchain a promising solution for the security and privacy concerns surrounding IoT devices. By utilizing this technology, users can have more control over their data and ensure that it is being shared securely and ethically.
For example, a smart home network could use Blockchain technology to securely share data between devices such as security cameras, door locks, and thermostats. The Blockchain would ensure that only authorized devices have access to the data – and that the owner of the smart home retains full ownership and control over their data.
This method, however, is not without its drawbacks. There is potential for increasing carbon emissions and environmental problems due to the high power consumption needed to run a Blockchain network for Internet of Things devices. It’s also possible that Blockchain’s complexity may discourage its use by those who aren’t very computer knowledgeable or by smaller enterprises with fewer resources. (Xu, Xiang, and Zhao 2020)7Xu, Jie, Yan Xiang, and Shuai Zhao. 2020. “Blockchain-Based Secure and Sustainable Internet of Things: A Comprehensive Survey.” IEEE Communications Surveys & Tutorials. https://ieeexplore.ieee.org/document/9090812.
Society’s impact of IoT, Blockchain, and AI optimization
The convergence of IoT, Blockchain technology, and AI presents several prospects for beneficial growth, but these innovations must be addressed with prudence. It’s important to use cutting-edge innovation in ways that benefit society and get us closer to achieving sustainable growth. Ethics are a prerequisite. It’s the only way to make the most of these technologies and guarantee a brighter future for all of humanity. (Bostrom 2014)8Bostrom, Nick. 2014. “Superintelligence – Hardcover – Nick Bostrom.” Oxford University Press. https://global.oup.com/academic/product/superintelligence-9780199678112?cc=us&l ang=en&.
The technologies looked at in this article could make things even worse than they are now. Those who have access to the data generated by the growing number of devices connected to the Internet of Things will have a big advantage. If Blockchain and AI aren’t used well, wealth inequality could get worse. Ethics say that everyone should have the right to their own privacy. As more devices connect to the internet, privacy is at greater risk. Using Blockchain technology, data can be stored and managed in a decentralized and safe way – but privacy and security must be given extra attention during development.
From a philosophical point of view, these changes could make it harder for people to be free and unique. The possibility that AI systems could make decisions instead of people raises concerns about the loss of human freedom. When making these tools, people and their uniqueness must be taken into account.
In conclusion, the Internet of Things, Blockchain, and Artificial Intelligence all offer huge opportunities for growth and innovation, but they must be handled with care and respect. We can make a better, more sustainable future by putting society’s needs first and making sure these technologies are useful for everyone.
- 1Pilkington, Marc. 2016. Blockchain Technology: Principles and Applications. Edited by Xavier F. Olleros and Majlinda Zhegu. N.p.: F. Xavier Olleros and Majlinda Zhegu. https://ssrn.com/abstract=2662660.
- 2Copeland, BJ. 1998. “Artificial intelligence (AI) | Definition, Examples, Types, Applications, Companies, & Facts.” Encyclopedia Britannica. https://www.britannica.com/technology/artificial-intelligence.
- 3Rouse, Margaret. 2020. “What is the Internet of Things (IoT)? – Definition from Techopedia.” Techopedia. https://www.techopedia.com/definition/28247/internet-of-things-iot.
- 4“What is IoT: The Internet of Things explained.” 2022. McKinsey. https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-the-internet -of-things.
- 5Floridi, Luciano. 2019. “The Logic of Information – Luciano Floridi.” Oxford University Press. https://global.oup.com/academic/product/the-logic-of-information-9780198833635?cc =us&lang=en#.
- 6Morozov, Evgeny. 2019. “Evgeny Morozov, Digital Socialism?, NLR 116/117, March–June 2019.” New Left Review. https://newleftreview.org/issues/ii116/articles/evgeny-morozov-digital-socialism.
- 7Xu, Jie, Yan Xiang, and Shuai Zhao. 2020. “Blockchain-Based Secure and Sustainable Internet of Things: A Comprehensive Survey.” IEEE Communications Surveys & Tutorials. https://ieeexplore.ieee.org/document/9090812.
- 8Bostrom, Nick. 2014. “Superintelligence – Hardcover – Nick Bostrom.” Oxford University Press. https://global.oup.com/academic/product/superintelligence-9780199678112?cc=us&l ang=en&.