The megatrends Blockchain, Artificial Intelligence (AI) and Internet of Things (IoT) are nowadays merging, says new report “Tokenization of physical assets and the impact of IoT and AI” from the EU Blockchain Observatory and Forum.
According to Dr. Tim Weingärtner, professor at Lucerne University of Applied Sciences & Arts – School for Information Technology, this merge is driven by the so-called “digital twins”, which refer to a digital replica of the physical world. To understand this, we should picture the IoT as the possibility to recognize and track physical objects, such as power generation turbines, engines and any other connected equipment in industrial environments, or streetlights, parking lots, video surveillance cameras and any other urban device in City networks.
Tokens represent those assets and can act as the connection between the physical and digital world in terms of value. In this workflow AI takes the role of adaptive decision engine, as it allows to better understand objects and processes, making autonomous decisions upon machine learning scripts.
The combination of Blockchain, AI and IoT in these digital twins enables a number of smart applications, including asset and supply chain management, sharing economy platforms, data trading and monetization, identity management and automatization. Moreover, robots and drones can be leveraged as the actuators of the digital world, since supporting physical intervention over connected objects and systems. And all collected and stored data ultimately represent the memory of the digital world, opening the possibility of advanced analysis, correlation and even prediction.