Why smart cities need blockchain technology
Smart cities continue to grow across the globe as more governments embrace digitization. The term smart cities refers to a utopian urban development that uses new technologies to run daily activities. All this is done through Blockchain4Cities, an initiative to coordinate control and integrate various services with transparency, privacy and efficiency features through blockchain technology.
Smart cities like Wyoming have gone so far as to create great regulatory frameworks that help integrate blockchain into their city systems. On the other hand, Dubai has created over 20 blockchain use cases across eight industry sectors in addition to blockchain policies for its industry.
How blockchain will work in smart cities
Smart health
The healthcare sector has seen increased patient data transferred between healthcare professionals and insurance companies. This information is private and requires a high level of security. Blockchain technology ensures data protection, integrity, shared access and transparency. In addition, blockchain provides decentralization of data, which helps doctors and other healthcare providers get patient information faster in emergencies.
Supply chains
Blockchain can be used in supply chain processes to manage the flow of goods and services between different networks in the city. The technology can also track business transactions in real time to ensure that due process is followed in the delivery of goods and services. Blockchain can help reduce uncertainty, operational inefficiency and information asymmetry.
Public administration
According to records, half of the world’s population already lives in cities across the globe. These numbers continue to grow as more and more people move to the cities in search of better opportunities. As these numbers continue to grow, cities will need to turn to blockchain and other better management technologies. Blockchain has the power to help public administrators expand the scope of services they provide to their citizens. For example, while responding to citizens’ concerns, administrators can use the technology to provide public transparency by sharing the necessary data about how services are delivered. Blockchain can also help reduce fraud cases in public offices by recording all transactions on the blockchain.
education
One of the best uses of blockchain technology is its ability to simplify various processes. For the education system, blockchain helps with the huge amount of student data. Different educational institutions can come together to create a centralized immutable database that will make it easy to share and access information.
Increased energy saving
Smart cities can use blockchain for resource conservation as the world strives to meet its sustainability goals by 2030. For example, governments can create blockchain-based networks that monitor citizens’ energy consumption. The technology could also be useful for redistributing unused green energy to others in the city in exchange for incentives or additional income.
Improve cyber security
A recent cybersecurity report suggests that companies will lose around $10 trillion by 2025 due to cyber-related crimes. Blockchain security features make it the ideal cybersecurity solution to protect user data from unwanted parties. Blockchain can also protect the user’s identity by preventing identity theft, to name just a few.
Better waste management
Smart technologies can use blockchain to maintain high hygiene and a clean environment. The technology can provide real-time tracking of various waste management processes. The authorities can also stimulate the waste management process to ensure more user participation.
In conclusion, as smart cities continue to gain traction, blockchain attitudes will help improve public policy, sustainability, energy efficiency and overall quality of life. In addition to the above use cases, there are a few more use cases, including but not limited to transport management and various public services.
