The use of the latest information technologies is widely recognized as an important factor in the development of smart cities. Proven technology should be used, which is a solid foundation for further applications. Bitcoin was used to test the blockchain. Blockchain technology is a relatively new technology that involves the use of blocks linked together using cryptography. In the future, this can be used to develop smart cities in the sphere of anonymous data transfer. Which seems very important in today’s world. This is one of the priority development paths. The concept of the “smart city” describes the development of a utopia integrating information and communication technologies, thanks to which citizens, governments and organizations can create and exchange data in real time. Due to its potential for many applications in various industries, blockchain technology can create a new level of simplicity and security of communication and transactions between all participants of the smart city. You can read more about the blockchain technology used in bitcoin at bitcoin-tidings.com
What is Blockchain
The blockchain is an open, decentralized ledger that records transactions between two parties without the need for third-party authentication. By combining this technology with IoT and real estate, we can see a significant change in urban expansion. After explaining how blockchain can help innovation in IoT and real estate in parts 1 and 2 of the Blockchain for Smart Cities series, we now discuss the challenges smart cities face.
Complete the city to smart city challenge
Countries around the world are increasingly urbanizing, and major cities are attracting top talent and companies, turning them into engines of economic growth. But this creates the risk of congestion and environmental problems. Urban population growth leads to increased resources, increased pressure on urban infrastructure, increased demand for public services, and increased pressure on the environment.
The demand for smart cities is driven by connected technologies. The economic downturn caused by the COVID-19 pandemic highlights the need for effective and reliable city governance. Advanced technologies such as blockchain can play an important role in providing effective city management in addressing these societal challenges.
In order to provide effective city services, the city must ensure effective communication between its various stakeholders. Blockchain allows network participants to securely and publicly exchange data without relying on a central administrator.
Blockchain application in smart city
Since a smart city is a collection of networks and interacting agents, we have selected several application areas. The use of blockchain technology is specific to each application area, but their combination can be considered the foundation of a smart city.
The main goal of smart energy is the efficient use of clean and cheap energy. Blockchain has the potential to create a more resilient environment for the energy industry by facilitating energy production and consumption. Urban ecosystems can benefit from using blockchain to improve energy efficiency and manage energy resources. Transparency of energy transactions can be achieved by using blockchain to regulate energy processing and distribution. Blockchain can provide a powerful communication framework for energy networks, simplifying and securing energy transactions. Blockchain technology can be used to store data generated by energy management systems. As a result, policymakers can better use data to measure supply and demand.
The smart mobility concept aims to increase the accessibility of a modern transport system that is efficient for users and sustainable for the city and the environment. This is the key element of a smart city. One of the main obstacles every city faces is the effective management of its transport network. Blockchain technology can be used in conjunction with IoT devices and systems to continuously track vehicles and passengers in real time. The use of various blockchain technologies allows transportation decision-makers to optimize route strategies and schedules, plan for different travel needs, and achieve high efficiency. in terms of environmental and sustainable development goals. An efficient distribution network using blockchain technology allows users to securely pay for delivery services across the entire transportation ecosystem, regardless of the delivery method used. Blockchain allows for better understanding of passenger profiles thanks to the ability to collect and store large amounts of detailed data and store history of journeys, distances, services, and more. Blockchain can also be a mobility aid. -a-Service”, which can provide citizens with various additional services such as car sharing, payments, insurance and maintenance.
Administration and civil service
As urbanization accelerates, the need for efficient city management and service delivery becomes more and more important. Public administration must be transformed to be efficient and useful to citizens. This can be achieved by reducing heavy reliance on centralized control systems. With a high level of security and privacy, blockchain can be used to help governments deploy effective e-government solutions. A smart contract is a tool powered by blockchain technology to enable the transition to a smart government where citizens can actively participate in public services. Various services such as land registration, identity management and authentication, tax and paperwork management can be provided more automatically and efficiently through the use of smart contracts based on blockchain. Blockchain is also an effective tool for government transparency and accountability. Transactions are verifiable and all parties involved are responsible for providing contractual services.
Risks of implementing blockchain in smart city
Depending on the application(s) of blockchain in a city, it may be necessary to transfer or combine data from several different systems. There is a risk that current information may be incomplete or inaccurate. In addition, organizations must protect their personal data under laws such as PoPIA. Information can be shared with any questions asked.
Even without a direct threat of intrusion, an entire city has many interconnected systems and smart devices that can become a target for cybercriminals. All of these interconnected devices and interface systems are potential entry points for hackers if not properly secured. Whether it’s a smart camera or a smart parking system, any smart device or internet-enabled device can be vulnerable. Just one vulnerable device can give criminals access to an entire network – if the casino is compromised by a smart thermometer inside a fish! Strict control measures are required to ensure that all circuits and networks are adequately protected.
Future country opportunity
One of the biggest blockchain opportunities in town is cryptocurrency. In April 2021, the cryptocurrency market cap will exceed $2 trillion for the first time. The market is poised for strong growth as big companies like SpaceX and Tesla develop more tokens and invest heavily in the space. In the future, the city could integrate this into the companies that operate in it. Businesses may want to accept cryptocurrency payments. Other uses, such as B. Tokenization, can provide companies with additional revenue streams. A token community can open up countless opportunities for citizens. Tokens can be used to pay for services and products (see Part 2 of this series, where we discuss rent payments using tokens). It can also be given to citizens as a reward for participation and even incentivizes the following behavior: B. Provides valuable tokens that citizens can purchase for medical checkups. The token community spans industries from healthcare, real estate, and education to transportation, telecommunications, and sustainability.
Smart cities and blockchain technology are still in the early stages of development. Both concepts are very broad and involve many stakeholders, systems and processes. With more technological advancements and people accepting the smart city concept and exploring the possibilities of blockchain technology, it is expected that there will be great developments and advancements in this field in the future. near the. New technological innovations create new applicability in different smart city ecosystems, and blockchain can combine this innovation with many applications in different industries.