The block chain and the Internet of Things are perfectly integrated: via the block chain identity authentication

Block chains, Internet of Things and artificial intelligence are innovative technologies that pave the road for digital transformation, which will cause subversion of subversive in various industries. The following three technologies will be fused and create new business models in the future. Autonomous Agents (ie, sensors, automotive, machines, and other Internet of Things) will be their own profit centers, they 1) Digital twins with deployment of Internet of Things solutions, 2) can send and receive currencies based on block chain technology, 3 ) Can be used as an independent economic agent, using artificial intelligence and data analysis independent decisions. We believe that the integration of this technique will promote the development of this autonomous business model and the digital transformation of the company.

Block chain technology, Internet of Things (IoT) and Artificial Intelligence (AI) are great innovations, will improve business processes, create new business models, and change the entire industry.

For example, block chain techniques can increase trust, transparency, security, and data protection of service processes by providing a shared, detrimental and distributed register (accountbook). Strictly speaking, block chain technology – or general distributed book technology (DLT) – can store various assets in a way similar to the register.

At present, the links between these innovations are basically ignored. However, these innovations can and should be applied together, it is foreseeable that they will be integrated in the future. The possible links between these technologies are that the Internet of Things collects and provides data, and the block chain is applied as an infrastructure and has established cooperation rules, and artificial intelligence optimizes processes and rules. The block chain, the Internet of Things and artificial intelligence is complementary, and its potential can only be fully developed when used together.

Data management, data standardization

Internet of Things equipment, such as sensors, machines, or cars, collect a lot of data. These data are typically stored in a central database. Usually, these data lack standardization because different conventional systems are used to collect and store data. Block chain technology can support data standardization, create a decentralized, unified, digital platform for the Internet of Things data, for multi-use. On the block chain system, data is stored in a unified data format due to the use of hash functions. This uniform will result in high standardization of data. In addition, since the hash function converts the received information into a certain length of output, the size of the storage data will greatly decrease. Therefore, data management can be optimized by increasing the standardization of data.

Data protection and data security

In the block chain system, the underlying cryptography can achieve high privacy. In most zone chains, such as block chains used in Bitcoin or Email, transactions are carried out in a pseudonym. However, complete anonymous transactions can also be implemented. For example, Monero or Zcash is this. The architecture of the block chain system, coupled with the selection of public key / private key encryption technology, but also fully encrypts the data to be transferred, so if necessary, only the device itself can read and write its own data.

Data protection is particularly advantageous in the field of Internet of Things. Internet of Things machines and devices store a lot of sensitive data. Ensure that the privacy and security of the storage data is important. The current common practice is to send the Internet of Things data directly from the machine to the corresponding database. However, these data do not have high privacy because it is not encrypted. Block chain technology provides additional value because it ensures that the collected data is protected. However, there is a trade-off between high level privacy and control of illegal activity. In the case of anonymous trading, it is impossible to infer the name and address of the transaction sender. This anonymity has attracted some illegal activities such as money laundering or funding terrorism. In this case, artificial intelligence can play a help and improve security by detecting illegal activities. YIN et al. (2019) It is recommended to combine artificial intelligence with data analysis to reduce the risk of illegal activities arising from the anonymity of the transaction on the chain. It should be noted that artificial intelligence technologies benefit from the provided large number of Internet data, because the artificial intelligence algorithm learns from the data.


One of the main limits of the Internet of Things is to manage a lot of data collected. In order to improve scalability, use block chain technology and artificial intelligence to bring benefits. The opponents of the block chain technology believe that the block chain system itself is not expandable because the work proves algorithm is very energy consumed. However, there are other consensus mechanisms, such as proven or authorization certificates, and their energy efficiency and scalability are significantly improved. Of course, the consensus mechanism will also need further optimization – in order to achieve higher levels of scalability on the block chain, artificial intelligence will help. LiU et al. (2019) pointed out the possibility of using performance optimization framework for block chain. This system may be based on machine learning. The author proposes a “DRL-based algorithm, dynamic selection / adjustment block producer, consensus algorithm, block size, and block interval to improve performance”.