When talking about the leading groundbreaking technologies in 2018, cognitive computing and blockchain technology top the list. In fact, putting these technologies to practical use has allowed us to understand more about their capabilities individually and collectively. For this reason, here is how some industries can leverage the combination.
The Basics of Cognitive Computing and Blockchain
Before we delve into what both technologies can achieve together, it is fundamental that we look at them separately.
Blockchain entails a new system used for not only storing information but also processing transactions. It was created for distributing the leading cryptocurrency in the world, bitcoin. The difference between blockchain and other databases is that it utilizes a distributed ledger system as opposed to a centralized database.
In simple terms, it means that the information is distributed in numerous computer networks rather than being stored in a single location. In addition, information updates take place regularly, and anyone with access to the network can view it easily.
Since the information is stored on different computers, the blockchain system is more secure compared to traditional databases where a hacker only needs to target one computer.
For this reason, the technology has gained enormous popularity in several industries for its unmatched security. With cybersecurity becoming a growing concern, blockchain has proven to be one of the ways some industries could prevent hacks or breaches.
On the other hand, cognitive computing involves using artificial intelligence systems to develop a thinking computer. Through deep learning, cognitive computers study and adapt as they get new data. Furthermore, these computers do not just carry out logic-based commands.
Also, no standardized definition can be used to describe such systems since the technology is rapidly evolving and comprises many distinct AI systems. Nevertheless, cognitive computing essentially describes those computer systems that imitate the human brain.
The IoT Dream
Numerous industries are starting to witness how utilizing interconnected devices can aid in improving and automating their processes. However, there are still certain limitations on security and scaling with centralized systems. To allow enterprises to utilize better the data they gather through such devices, IBM has incorporated its Watson supercomputer into an IoT platform.
Although IoT devices gather data, most of it is never used. Thanks to cognitive computing, such data can be processed in unimaginable ways. In this case, blockchain comes in hand, especially in providing security and as a way of scaling IoT usage.
Currently, most companies in the financial industries are using blockchain technology. In fact, the industry is among the first to combine both blockchain and cognitive computing. At Yes Bank, an India-based financial institution, both technologies help to deliver secure and streamlined customer experience.
Furthermore, IBM has collaborated with Everledger, a startup, to explore how integrating IBM Watson technology with blockchain can minimize fraudulent activities in the diamond industry.
Why Blockchain and Cognitive Computing are Important for IoT
To keep up with the growth of interconnected devices globally, we require harnessing the potential of both technologies. Blockchain technology, IoT, and cognitive computing can oversee and automate various industry systems for improved security, waste reduction and better optimization.