When devices, networks, and AI work together seamlessly, it creates a smarter, more connected ecosystem.
This isn’t a distant dream; it’s a reality rapidly emerging as blockchain, IoT, and AI come together. These technologies are no longer working in isolation – they form a trio that redefines how industries could function.
David Palmer, chief product officer of Pairpoint by Vodafone, captures this shift: “Blockchain is providing trust. It gave us tokenisation, it gave us smart contracts, and it gave us a new way of automating, which is now spilling over into the wider business landscape.”
Building trust with blockchain
At its core, blockchain has matured from experimental concepts to practical tools for industries. Its early potential is now manifest in real-world applications like supply chain management and decentralised finance (DeFi). Blockchain not only ensures trust through transparency but lets organisations streamline operations and gain new efficiencies.
Palmer described blockchain’s evolution: “It’s been years in the past where we’ve done a lot of proof of concepts, we’ve done a lot of training. It’s been a lot of headlines. But today I really want to explore how blockchain and IoT and AI can work together to really be a part of the new business digital infrastructure that’s emerging.”
IoT’s expanding role in data generation
IoT devices have become omnipresent, embedded in everything from cars and drones to household sensors. Experts expect that by 2030, there will be around 30 billion IoT devices worldwide. These devices generate massive amounts of data, which AI systems capitalise on to provide actionable insights. According to Palmer, “By 2030, we’re expecting over 30 billion IoT devices. These are cars, drones, cabinets, sensors, all woven into the business process and business industry.”
But IoT isn’t just about data collection. It introduces the concept of the “economy of things,” where devices transact autonomously. To make this work, however, these devices need secure and reliable connectivity – a role blockchain is uniquely equipped to fulfil.
AI’s appetite for reliable data
AI thrives on data, but the quality and security of that data are paramount. Public datasets have reached their limits, pushing businesses to tap into proprietary data generated by IoT devices. This creates a two-way relationship: IoT devices supply data for AI, while AI enhances these devices with real-time intelligence.
Palmer emphasises the importance of data trustworthiness in this ecosystem: “You need an identity which gives you origin of data. So we know the data is coming from a certain source, is signed, but then we also need to trust the AI that’s coming back.”
Blockchain plays an impartant role in ensuring trust. It guarantees the legitimacy of both the data given to AI systems and the intelligence delivered back to IoT devices through verified digital identities and cryptographic signing.
Digital wallets and the adoption of blockchain
Digital wallets are becoming a cornerstone of this evolving ecosystem. Their global numbers are expected to grow from 4 billion today to 5.6 billion by 2030. Unlike traditional wallets, blockchain-enabled wallets go beyond cryptocurrencies, supporting functionalities like account abstraction and integration with tools like WalletConnect.
One breakthrough is the integration of tokenised bank deposits. These bridge traditional banking with blockchain, encouraging businesses to use blockchain for their transaction needs. As a result, blockchain is making its way into broader business applications.
Finance meets IoT
The integration of finance into IoT devices is another forward step. Using smart contracts and AI, devices as disparate as cars and drones can now handle payments autonomously. Toll payments, EV charging, and retail purchases are just the beginning of this embedded finance ecosystem.
Palmer illustrated the potential: “By linking EV chargers and vehicles to blockchain, you can then relate that to their payment credential and their payment preferences. And then you can have a peer-to-peer transaction.”
The same principle applies to energy grids, where vehicles can sell energy during peak times and recharge during off-peak hours, thereby enhancing sustainability.
Decentralised infrastructure networks
Another interesting development is the rise of decentralised physical infrastructure networks (DePIN). These networks allow shared or tokenised resources to create community-driven infrastructures. For instance, protocols like Render pool GPU resources for gaming, while Filecoin decentralises storage.
According to Palmer, “It’s about how communities can build specific AI and specific connectivity infrastructure, specific payments infrastructure for their businesses.”
Blockchain and the role of CBDCs
Governments are also noting blockchain’s potential. Central Bank Digital Currencies (CBDCs) are being explored as a way to integrate blockchain into macroeconomic policies, such as managing money supply and redistributing income. Tokenised deposits further extend blockchain’s role by digitising traditional monetary systems.
With CBDCs and tokenised deposits, blockchain is moving beyond niche applications to become an important part of financial ecosystems worldwide.
The metaverse and its evolution
The metaverse, once a far-off concept, is rapidly evolving. Innovations like AI-enabled smart glasses change how users interact with immersive digital content. Palmer noted: “This year, the introduction of the glasses by Meta […] allow you to […] access your content but also have access to AI agents.”
AI robots are also adding a new dimension to the metaverse by bridging virtual and physical experiences. These same technologies and methods open up opportunities in a variety of industries, including manufacturing and healthcare.
A seamless digital ecosystem
The convergence of blockchain, IoT, and AI marks a turning point in digital transformation. Blockchain ensures trust, IoT generates data, and AI delivers intelligence. Together, these technologies promise to create a digital operating system capable of reshaping industries and economies by 2030.
Palmer concludes, “If we can link billions of devices to blockchain and AI through secure infrastructure, we unlock the potential of a truly interconnected digital economy.”
Source: AI NEWS
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