Why blockchain will be the backbone of AI and IoT

The convergence of Artificial Intelligence (AI) and the Internet of Things (IoT) promises a future where devices seamlessly communicate, analyse data, and make intelligent decisions.

As this synergy unfolds, the need for a robust and secure foundation becomes paramount, and blockchain emerges as the linchpin that holds the potential to revolutionise the way AI and IoT operate. Blockchain, with its decentralised and tamper-resistant ledger, not only addresses the critical issues of trust and security but also establishes a transparent and efficient framework for the vast network of interconnected devices.

This panel at the London Blockchain Conference 2023 led by Alessio Pagani (Research Director of nChain) shed light on the exciting opportunities that the convergence of blockchain with AI and IoT poses, along with technology experts and entrepreneurs.

Watch and learn from:

Blockchain and IoT to work hand-in-hand

Elliot began the discussion by pointing out that IoT has grown rapidly in recent years, but that the underlying technology required to collect and record all of this data has not necessarily kept pace. He emphasised the lack of infrastructure to effectively leverage the abundance of data generated by these devices.

Elliott pointed to blockchain as the missing piece that can fill this crucial gap, providing a decentralised and secure foundation for building upon the vast amounts of data. Using the insurance industry as an example, he explained that the integration of IoT and blockchain could lead to seismic changes, particularly in addressing dynamic risks that traditional models often overlook, such as the pricing risk associated with utilising contractors.

The importance of data integrity

This was echoed by Wallace, who noted that the biggest challenge facing both blockchain and AI right now is data integrity and ensuring that users and customers can trust the data – pointing to the adage of ‘garbage in, garbage out’.

By establishing an authoritative data source through blockchain, AI systems can access more authentic and dependable data, mitigating the risk of producing suboptimal results. The critical importance of data integrity for both IoT and AI was emphasised, with Wallace noting that inaccurate data could lead to what he referred to as ‘artificial stupidity’.

Gupta echoed these sentiments, emphasising blockchain’s suitability for addressing issues of privacy and trust, which are crucial for fostering business and consumer confidence. ‘Blockchain is on the way to larger scale deployment, so we need to standardise it and get best practices, then we can combine these three monsters: IPv6, AI, and blockchain,’ added Ladid.