The Convergence of Artificial Intelligence, the Internet of Things, and Distributed Shared Ledgers (Blockchain).
It seems trite to say, as seems to happen multiple times a day, that the latest technology revolution is really here. I do say that now, although not for a single technology, but from the convergence of 3 technologies that unite to form a complete system of automation.
IoT devices are self-generating data into self-executing Blockchain Smart Contracts self-created, self-operated, and self-governed by Artificial Intelligence.
The real world process of gathering data, securely trusting, storing and transacting on the data, and creating, implementing, and monitoring the definitions and flow of data and its action methods can now be fully implemented by combining these 3 technologies in a unified system.
It’s great that your smart refrigerator can read the bar code from your milk container and generate a shopping list when consumed or expired. It’s even better that your smart refrigerator can soon place the order using blockchain purchasing networks on your behalf. But it’s the application of AI to analyze and anticipate your needs, to monitor the purchases for mistakes, fraud, or regulatory compliance, and create new and specific Smart Contracts that really seals the deal.
We have identified 3 main areas where AI can be applied to Blockchain. This reflects our current thinking but should not be considered definitive or exhaustive and we solicit and welcome any and all input to continue to refine this perspective model.
Creating the Smart Contract: This is primarily translating natural language contracts into Smart Contracts through the use of an AI interpreter. We think of this more as a Smart Contract Type or Network. AI will develop the ability to define a Smart Contract class or type as opposed to a specific instance or implementation. This is a somewhat nebulous differentiation with overlap or a blurred boundary but very useful to us in identifying and building the AI and Blockchain abstraction layers to process all Smart Contract creation and execution variations by AI.
Implementing the Smart Contract: This is primarily translating the details of a specific contract implementation. Think a standard contract for real estate or auto registration and sales applied to a specific registration or sale. AI natural language processing will parse the details (name, address, plat or VIN number, etc.) from a document or verbal input and implement or instantiate that ‘record’ in an existing Smart Contract blockchain network.
Monitoring the Smart Contact: This will take several forms, including…
1. Monitoring for accidental or unintended deviations from the spirit of the contract. Reference the Ethereum DAO issue of 2016.
2. Monitoring for intentional deviations from expected outcomes, i.e. fraud.
3. Regulatory compliance by external auditors, governments, etc.
4. Analytics. For example SCM compliance performance vs. cost.
As the AI engine becomes smarter and the AI interpreter becomes more robust, additional actions by AI may include creating new contracts or modifying existing contracts based on analytics and other insights from Smart Contract monitoring.
We at Belltane are currently working to develop IBM Watson AI and Hyperledger integration as we have identified above and actively pursuing additional participation and contributions. Please contact us for more information.