We are rapidly approaching an era when traditional tasks will be performed automatically rather than by human beings. This new phase of automation extends beyond robotic factory production lines. There is expected to be a tremendous impact on society due to the convergence of Artificial Intelligence, the Internet of Things, Virtual Reality, and Data Analytics.
But what is expected when you combine automation and AI with another of today’s most happening breakthroughs, blockchain technology?
Let us find out below.
Blockchain: What is it?
Most of us know that blockchain is the platform on which cryptocurrencies function. You can buy Solana and other cryptocurrencies through apps whose fundamentals are based on blockchain.
Essentially, the blockchain is a digital record of information that cannot be changed, hacked, or counterfeited by anyone. In essence, it consists of a distributed ledger of transactions, duplicated and distributed over a network of computers through technology. Every blockchain block contains a record of several transactions, and every time a new transaction occurs, a record of the transaction is added to the ledger of each participant.
Generally speaking, distributed ledger technology (DLT) refers to a decentralized database maintained by many individuals or companies. Blockchain technology records transactions using a cryptographic signature, known as a hash, which acts as an immutable way of recording the transaction. When a single block is altered on one chain, it will become apparent that something has been tampered with.
A hacker needs to change every block in every distributed version of the blockchain to corrupt the system. Throughout time, blockchains such as Bitcoin and Ethereum have become more secure as new blocks are constantly added to the chain, making them even more secure.
Automation – what is it?
In the context of technology, Automation refers to applications designed to operate with little or no input from human beings. Automating business processes (BPAs), information technology (IT), your home, and many other tasks can be considered under this category.
Blockchain and Automation
Using blockchain as a distributed ledger technology, we will be able to create a programmable economy similar to what Bitcoin and other cryptocurrencies have already achieved. The use of digital currencies based on blockchain technology is being experimented with by Central Banks and other commercial organizations. Still, the significance of these currencies goes far beyond the exchange of currency.
A digital-to-real-world bridge will be the foundation of a programmable economy and will serve as the link between the digital and real worlds. Blockchain technology allows you to write Smart Contracts in a familiar programming language. This will enable you to reduce the costs and delays associated with the traditional verification of contracts. Therefore, micropayments and micro contracts can be used by IoT and autonomous devices to interact with each other.
One day, artificial intelligence, robotics, and smart contracts will be able to reduce the amount of human involvement in transactions. Typically, orders are delivered directly to a factory for manufacturing. Still, they are picked up by a self-driving truck, loaded by an automated crane in a port, transported by a ship, and delivered by an aerial drone. Eventually, specific products will not require factory production because 3D printing will make them obsolete.
Blockchains will play a vital role in the programmable economy, automating everything from lighting and climate control to entertainment and grocery delivery.
In the future, there will be advances in healthcare, such as wearable electronic patches that transmit data to doctors and nanobots that deliver medications. With its blockchain work, Stratis will develop a new traceability standard to prevent counterfeit medicine and overprescribing potentially harmful drugs. By applying the same principles to all industries, blockchain can turbocharge digitization.
As Blockchain technology becomes more prevalent, those at the forefront will have to create practical applications to lay the foundation for a new digital economy with reduced costs, improved efficiencies, and better quality.
Blockchain and Automation can be an incredible combination. However, it is essential to note that blockchain and IoT are evolving at different paces.
For example, blockchain has constraints such as scalability to handle large amounts of data, regulatory and data privacy issues, and standardization, which are all prerequisites for enterprise adoption, according to Parekh. IoT technology also needs to prove that the infrastructure is secure, efficient, and resilient, and it still must overcome these constraints before new business solutions become staples in enterprise technology.