Blockchain’s role in developing smart cities
Undoubtedly, technology has always played a major role when it comes to the evolution of cities. Right from the very first human settlements to the industrial revolution to today, technological advancements have impacted the houses we use, cities we live in and the environment around us. We have been experiencing global trends that have paved the way for a revolution.
As urbanization is on a steady rise and is accelerating in the last 15 years, it doesn’t come as a surprise that cities amount to more than half of the entire world’s GDP. If the data from the World Bank is to be believed, more than 54% of the global population now resides in cities. This global trend has created a framework where cities are overpopulated, polluted and administration is inefficient.
As the population is increasing, the number of elderlies is growing too. Almost 10% of the population is above 65 years of age. This number will rise to 8.5 billion people by 2030.
It is not only about elderlies, but the way we lead our lives today is degrading our environment terribly. Climate change is real, and resource scarcity has emerged to be a global problem, as highlighted by the World Economic Forum.
Demographic and social changes have introduced a shift and paved the way for a needed transformation which could address the demographic and social changes. The most recent technological breakthroughs have taken the world by storm and are impacting the global economy drastically. This means that we are more connected and faster than ever. Industries are profoundly affected by the new ways of consuming of a world that never rests.
Thus, governments and corporations are turning towards innovation research and development to tackle the challenge of an increasing population and its negative consequences – socially and economically.
All these factors have coupled together to present a solid use case to develop smart cities in front of the government. This brings us to the next important question – what is a smart city, anyway?
Techopedia.com defines a smart city as a designation given to a city that incorporates information and communication technologies (ICT) to enhance the quality and performance of urban services such as energy, transportation, and utilities to reduce resource consumption, wastage and overall costs.
Put simply, a smart city uses technology to enhance livability. Such a city caters to the needs of citizens, maximizes operational efficiencies and maximizes environmental sustainability efforts. Creating a smart city is not an easy task, and requires a sufficient amount of resources.
This is when blockchain could serve the purpose pretty well, and help governments create smart cities effortlessly.
The blockchain is already in the process of streamlining a range of industries, and it can also play a vital role in the development of smart cities. Let’s have a closer look at a few such areas where blockchain could make the process smoother and swifter:
There are various use cases wherein blockchain-powered applications are used to send and receive payments. Blockchain-powered payment solutions are perfect for companies with remote employees. Similarly, small business owners can also use blockchain to transfer money to anybody securely and quickly without paying any additional transaction fee to intermediaries.
This kind of transfer of money can also be used by governmental institutions, including and not limited to: city programs, assistance, welfare, retirement, payroll, etc.
Blockchain can help to promote better governance with the help of smart contracts which can be deployed for a range of activities. From conducting transparent voting to automating the bureaucratic processes, filing taxes, tracking ownership of assets and the like, blockchain can make the entire system run smooth.
The insurance industry is one of the worst hit, all due to the online frauds.
