How Blockchain, AI, and IoT Are Revolutionizing Businesses
Learn more about how combining these three technologies can transform your business.
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The dynamic landscape of today's reality is largely influenced by revolutionary innovations that have disrupted our current ways of conducting business. It is imperative to understand how businesses, policy makers, and governments can leverage the powerful potential of emerging technologies to unlock a bright future for the competitive world tomorrow.
Information technology has revolutionized business operations leading to higher ROI, smooth process management, and overall increased productivity and efficiency. The business world over are now getting ready to deploy solutions with the advent of emerging technologies, such as blockchain, artificial intelligence (AI) and the Internet of Things (IoT).
Let's understand the details of how these trending technologies can add more value while solving critical issues for your business.
Blockchain is a decentralized, transparent, and secured digital ledger of activities that can be programmed to record virtually everything of value. Blockchain technology can then be utilized and tweaked to provide solutions, depending on the nature of the business.
- Blockchain is a database that is shared over a computer network.
- Once data is added to the database, it’s very difficult to alter it.
- Records are bundled together in a block and are added to one chain one after another.
- Blockchain creates hash values to protect data from alteration.
- Blockchain is a decentralized, distributed, and public digital ledger that provide transparency and security.
Since blockchain is still emerging as a technology, some of the most common challenges that businesses face is scouting the right resources that understand using and deploying this technology effectively.
Blockchain can be used for a variety of purposes. For example, integrating machine learning with blockchain makes it phenomenally cost effective. In fact, when integrated with IoT, it effectively works on its own without human intervention.
On the other hand, when blockchain is used along with AI, which gets predictive analysis of customers by assessing their preferences based on their online activities such as likes, cookies, preferences and other data collected by an algorithm, it ensures that the data we use is secure and incorruptible.
Security of data is most important thing that Blockchain provides. AI needs to be able to secure personal data — blockchain can solve that. Additionally, blockchain cannot be cost effective without AI.
Artificial Intelligence (AI)
AI focuses on machines that react like humans using various algorithms. AI technology includes speech and facial recognition, machine visions, and more. Below are points describing AI and its features in greater detail:
- AI focuses on the creation of intelligent machines that work and react like humans.
- AI has reshaped organizations by introducing new opportunities.
- AI includes the ability of a machine to perform learning, reasoning, problem solving, and planning.
- AI is also used for collecting real-time data, and by performing intelligent search, it can interpret text and images to discover patterns in data.
- AI uses various algorithms for machine learning.
AI is growing tremendously as tech giants such as Google, Microscope, and Amazon offer AI as a service. And developers can bring their own data to train algorithms that suit their needs.
AI is best at predictive analysis, but it can solve a similar-looking problem statement. Suppose AI detects faces better than humans but that algorithm is not suitable for solving, say, a math problem.
Additionally, AI is used for accessing data, but when it comes to real-time data and analytics, it faces some problems. With the help of IoT, we can gather large quantities of data in a different format and store it in the cloud.
AI helps machines learn from their experiences and data, while IoT is all about interactions between devices using the Internet. IoT is a powerhouse for data collection, which is then used by AI to learn and make predictions.
Smart homes, with the help of sensors, manage things efficiently. Suppose that whenever a fridge runs out of milk, an IoT sensor will detect that there is not milk and, since the device is connected to the Internet, will notify the grocery store. Then, milk will be repurchased via a payment conducted online and received by an online wallet. This is a perfect example of AI and IoT working together.
IoT devices need AI for making them work efficiently, and in turn, AI cannot work properly without IoT devices, since they provide a huge amount of data and are used for predictive analysis. Both, together, can bring a revolutionary change in our society and business.
Internet of Things (IoT)
IoT involves a network of devices that connect inanimate objects to the Internet without human intervention.
- IoT provide unique IDs to objects, computing devices, digital machines, and interrelates them.
- Organizations are accepting IoT in various industries for understanding customers, improving decision-making, and adding value to business.
- IoT includes hardware, sensors, data acquisition, pre-processing, and cloud analysis.
- IoT is a system of "things" embedded with sensors for connectivity to perform a better exchange.
Smart cities have adopted AI for real-time data analysis and for keeping track of their actions. Dubai is considered one of the most digitally progressive cities, and soon, it will be considered the first blockchain-based city, as it is adopting innovations that utilize blockchain.
Additionally, smart cities can reduce resource consumption and traffic congestion by using IoT devices, optimizing the use of electricity, water, and other resources.
Blockchain is adding value to IoT by making devices more secure by encrypting data, which is then transferred via the Internet. At this stage, technology is already facing security threats. But when blockchain is combined with IoT, it can generate amazing security innovations across industries.
Blockchain builds trust, reduces costs, and accelerates transactions, making stronger bonds with the customer and provides efficient products.
Blockchain and IoT make a perfect match, providing secure data and taking business transactions to a new level.
The convergence of blockchain, AI, and IoT will maximize benefits for each of these and minimize the risks. IoT is connected to devices where data can be hacked, stolen, or defrauded. Introducing AI will help defend it from malware and hackers while blockchain can help maintain transparency and security. Combining all three technologies will make them more powerful and strengthen aspects of the technology that are more vulnerable.
Published at DZone with permission of Ankita Shrimali. See the original article here.
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