First, let’s clearly define Blockchain, Internet of Things, and Artificial Intelligence, then we will discuss their joint utilities.
The Blockchain is an immutable, decentralized ledger of all transactions. The transactions are replicated across multiple computers making record tampering virtually impossible! This immutable mode of record administration eliminates the need for any central entity to manage the transactions. Instead, the decentralized network manages itself. This eradicates the need for a trusted third party to manage and protect data, which also means blockchain eliminates the ability of third-party entities to potentially corrupt data. Verity uses an IBM Hyperledger Blockchain custom tailored to be the industry leading software in blockchain based supply chain management.
The Internet of Things (IoT) is a network of physical devices that are connected to the internet and thus communicate with each other. IoT is comprised of a diverse range of devices and everyday gadgets that utilize embedded technology to communicate and interact with the external environment, all via the Internet. Verity takes full advantage of IoT technology by using this highly advanced digital communication network to track and trace products across the supply chain in an extremely efficient and precise fashion. For example, our IoT devices can monitor slight temperature changes inside of shipping containers, which can be crucial to the well-being of the product.
Artificial intelligence is when a computer mimics human cognitive functions such as “learning” and “problem-solving”. Artificial intelligence can be used to monitor data autonomously, which eliminates vast amounts of manpower. The future of artificial intelligence is limitless and Verity plans to be at the forefront by using IBM’s Watson artificial intelligence software for sophisticated analytical problem solving and database management.
BENEFITS OF USING BLOCKCHAIN WITH IOT
Trust
Blockchain’s decentralized nature allows people to trust each other and transact peer to peer. As autonomous systems and devices interact with each other, the IoT transactions are exposed to potential security risk. If these transactions were made on the blockchain the data would be decentralized across computers all over the world making the sequences virtually unhackable. Blockchain technology gives a simple, cost-effective, and permanent record of decisions made and communicated on IoT devices while diminishing the possibility of security breaches or tampering.
Transparency and Trackability
Data transactions take place between multiple networks owned and administered by multiple organizations. Blockchain can provide a permanent, immutable record so that custodianship can be tracked when data or physical goods move between points in the supply chain. Blockchain records are by their very nature transparent so activity can be tracked and analyzed by anyone authorized to connect to the network. This allows Verity to track and trace products using our IoT devices all over the world and store that data in one secure, transparent database.
3.Security
Security is the largest concern for IoT devices while also being of the most revolutionary aspects of the blockchain. Imagine a scenario where hackers can infiltrate a supply chain using IoT to track and trace. They not only shut down the processes but also steal the data involved. If the data is exchanged over a blockchain network, the overall security of the IoT network is tremendously enhanced. The data is safe and secure behind the world’s most secure and trustworthy network.
4.Smart Contracts
Blockchains use smart contracts to enforce contractual obligations via the blockchain. Smart contracts get automatically executed when the conditions of the contract are fulfilled. Using smart contracts, actions can be executed across various entities in the supply chain automatically, in an immutable manner, and without disputes.
ARTIFICIAL INTELLIGENCE AND IOT
In the past, code was written and computers would perform whatever the software directed it to do, nothing more. Artificial intelligence allows the computer to go beyond what it is instructed to do and allows it to “learn” and operate independently. The algorithms actually improve with time. When combined with IoT networks, the computer recognizes meaningful patterns buried in mountains of data provided by the IoT devices, prioritizes it, and learns from the data.
IoT platforms are already using machine language, which is a subset of Artificial Intelligence. With full-fledged Artificial Intelligence, like Verity uses, IoT platforms would maximize their full potential to track and trace enormous amounts of data all over the world. To achieve the full benefit of IoT, the speed and accuracy of the analysis are crucial. The decisions made by IoT platforms would advance over time as the AI software learns with experience.
Predictive maintenance is an area of interest to many manufacturers. The endeavor is always to cut down on the downtime, and increase machine availability without increasing expenditure on maintenance. SK Innovation, a leading South Korean oil refiner, is using artificial intelligence to predict the failure of connected compressors. AI-based systems have helped save Google 40% on data center cooling costs by predicting the temperature and pressure thereby limiting the energy usage. All major IoT platforms like Azure IoT, AWS IoT, etc. now have machine learning for predictive capabilities already incorporated, but going forward the deep learning capabilities of artificial intelligence will advance IoT to become incredibly accurate and advanced.
IOT, BLOCKCHAIN & AI IN ACTION – PUTTING IT ALL TOGETHER
IoT, AI, and Blockchain can complement each other well and can potentially remove some of the drawbacks that each technology may experience independently. Artificial Intelligence gets layered over the IoT platform while the data from external sources flows through the Blockchain platform. Even the data exchange within the IoT network can happen on a blockchain to ensure the traceability and recording of all transactions. Multiple IoT networks can exchange data while the brilliance of Artificial Intelligence will exponentially enhance with the collection of more data. Verity has created an all-encompassing, scalable system that can authenticate, categorize, and monitor virtually any form of data to qualify and quantify all marketing, transactional or distribution claims of virtually any product. The need for this system is worldwide, and its importance is unparalleled. The union of these technologies will deliver increased efficiency, security, transparency, and legitimacy. In the not so distant future, these technologies will be a necessity in order to remain competitive.