The combination of AI, IoT and Blockchain is a powerful troika and is considered the backbone of the 4th industrial revolution. The three, in combination, are the force behind the unprecedented innovations that are reshaping the 4th Industrial Revolution. These technologies acting together, complement each other to enhance security, transparency, efficiency, and intelligence in an automated system.

What are AI, IoT and Blockchain

AI (Artificial Intelligence) means the programming of machines with human-like intelligence digitally. These neuronal programmes or algorithms can understand, analyse and solve problems, and make decisions to implement the solutions like humans.

IoT (Internet of Things) denotes a network of physical objects or devices implanted with sensors, software and connectivity.  These objects or devices collect and transmit data and also act on the basis of data.

In Blockchain technology, information or data is stored in blocks. These blocks of data form a chain called the Blockchain. The new blocks get added to the previous block in the chain with a hash value authenticated by a network of computers. The integrity and order of blocks help to maintain transparency, security and immutability. Thus, a blockchain creates a decentralised and distributed ledger or record. 

How the AI, IoT and Blockchain Work Together

The job of IoT is to collect and generate information or data through connected devices.

AI analyses the data generated for possible solutions, makes predictions or intelligent decisions and delivers instructions for action.

Blockchain assists in creating secure, decentralised, and impenetrable data records for storage and transfer, ensuring transparency and trust.

A Typical Architecture of IoT-AI-Blockchain Integration

1. Collection of data: The IoT device or network of devices collects information through sensors or other communication technologies.

Generally, data encryption is used for data transmission to the cloud platforms, as in the case of wearables or industrial IoT. But to make data secure and un-hackable blockchain network is used for transmission, as in the case of DeFi or Healthcare data.

2. Processing of the data deploying AI modules: The data collected by IoT devices are processed by deploying AI Modules. Typically, two types of modules are there.

The Edge Ai model runs on the IoT device itself, and real-time decisions are made and acted upon. This type of models, like CNNs (Convolutional Neural Networks) or LSTMs (Long Short-Term Memory Networks), process the data offline locally. Hence, AI decisions get implemented immediately.

In the Cloud AI model, the data gets transmitted to cloud platforms, where AI algorithms process them. A blockchain oracle like ‘Chainlink’, integrates the AI-processed data into blockchain networks such as Hyperledger Fabric or Ethereum. Thus, AI decisions are stored securely in tamper-proof conditions.

When AI flags any abnormality or discrepancy, the processed data undergoes the smart agreement screening in the Blockchain for validation or rejection.
If fraud is detected, a smart contract freezes the account. If a credit score is high, a loan approval smart contract executes.

In the Hybrid AI model, initially, the Edge AI preprocess the data collected. Only the preprocessed data that requires in-depth analysis gets transmitted to the cloud platforms for further processing. Thus, one can save money and resources by reducing bandwidth usage by avoiding the transmission of unnecessary data.

3. Response sent back to IoT devices to act accordingly.

Key Benefits of Combining AI, IoT and Blockchain

Blockchain secures IoT data and AI algorithms from tampering and cyberattacks.

IoT, AI and Blockchain help in the automation of machines in real time as AI analyse the data collected by the IoT systems and instructs machines on how to act.

Blockchain makes certain that data collected by IoT devices is not altered and are trustworthy.

Blockchain removes the presence of a central authority, which makes the system unbiased and secures the privacy of stakeholders. 

AI flags out any discrepancies in the data and blockchain smart agreement screening validates appropriate action.

Blockchain provides a tamper-proof record of information. It helps stakeholders to trust the records as in the cases of insurance claims, credit scores and more.

Some Instances of AI, IoT and Blockchain Working Together

In Supply Chain Management, Sensors track location, temperature, roadblocks, damage to goods, etc. AI chalks out routes, manages inventory and predicts delays or damages. Blockchain makes the records of any damages, route alteration, etc., transparent and tamper-proof. For instance, it ensures waste reduction while transporting products from farm to store.

In healthcare wearable IoT devices collect patient’s data like heart rate, bp, sugar level, etc. AI models detect abnormalities, predict disease and suggest treatments, while Blockchain ensures privacy of patient’s data.

In agriculture IoT sensors check out soil moisture, crop health, diseases and pests, etc. AI modules advise irrigation needs, fertilisers, medicine and pesticide applications and predict production. Blockchain maintains an immutable record of the application of chemicals that ensure food safety. The records can also help in the certification of organically raised products.

In the case of Autonomous Vehicles, IoT sensors collect real-time data about the vehicle’s surroundings. AI    processes data to decide speed, steering movements, break application, etc. Blockchain preserves the integrity of its maintenance records, running history, etc.   

Challenges of Combining AI, IoT and Blockchain

1. Scalability: A large amount of data is collected by IoT devices and processed by AI models. Storage and handling of such huge data on a blockchain network is highly resource-consuming.

2. Interoperability: It is a big problem to communicate between the different systems and protocols seamlessly.

3. Cost: All the technologies are highly resource-consuming and expensive.

The Future of IoT, AI and Blockchain

The development of systems with integrated AI, IoT, and Blockchain is still in a nascent stage. However, all three technologies have immense possibility to produce new conveniences, independently or in combination. From banking to agriculture, this powerful combination is providing new avenues for more secure, intelligent and convenient devices for the future.

In short, when AI, IoT, and Blockchain come together, they form a troika of technologies that are reshaping industries and making life more convenient. The future is not just smart—it’s intelligent, secure, and attainable.