Technology

Blockchain Technology And Its Rising Importance In Smart Cities

All cities require the essential amenities like a clean environment, energy, water, and infrastructure, etc. Everyone around the world needs these. But due to the increasing population, the demand for all these amenities is proliferating. And for these most people are moving to city or urban areas to avail these facilities as well as other things like proper health care, excellent opportunities for employment, etc.

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Perfect For Smart Cities
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So due to this urbanization is increasing at a rapid rate as they offer excellent livability. But increasing urbanization is affecting and reducing available resources of cities including infrastructure and space. So to handle all these, the smart city concept was introduced. Smarter cities are a way to improve a sustainable environment, operational efficiencies and provide services to new citizens. So what is the role of blockchain in it?

Blockchain

The blockchain is a decentralized digital ledger which keeps a record of the transactions that undergo in a p2p network. It is a continuously interlinked increasing list of records. These records are stored very securely in numerous interconnected systems. The blockchain is decidedly less vulnerable as it doesn’t have a single point of vulnerability.

Also, the blocks are connected to their previous blocks so whenever a change is made to a block the other blocks will be disturbed or alerted. Blockchain allows the participants to transfer the assets without the need for any third party across the internet. To know more about blockchain, one can always look up to several blockchain tutorials online.

Adaptability Of Blockchain To Smart Cities

One of the main challenges in the concept of the lively city is the privacy and safety of the personal data. The enormous uses of technologies that operate with open data systems are a significant challenge to the concept of the smart city. For these problems, blockchain can be very promising.

Ids Based On Blockchain

To access an asset on the blockchain, the owner or anyone is required to have a digital identity to get involved in those transactions. Passwords are not enough to protect data nowadays with all the increasing number of hackers and hacking methods.

And also biometric scans like face recognition or retina scans are not a comprehensive solution because of their expensiveness and installation difficulties. But using blockchain with the cryptographic public and private key mechanism to create a digital signature can be a safe and secure solution.

Advantages Of Blockchain

The blockchain is a digital and distributed network which can store data safely, and only valid users can access these data. Blockchain has excellent potential and to understand this; it is essential to know all the advantages it has.

  • Identity Control –

Blockchain doesn’t require its users to provide private information like address or full name when to buy certain products only age is to be provided by the user.

  • Protection Of Personal Data –

Users don’t require any third party like organizations or shops to store personal data. This reduces the risk of the data being maliciously used or being hacked.

  • Prevention Of Data Breaches –

There are no intermediaries like Google or Facebook that are needed to store and share data.

  • Shared Ledger –

It is a distributed append-only system which is shared throughout the business network which makes it safe and secure due to the unavailability of a single point of vulnerability.

  • Provenance –

A blockchain can have the whole history of an asset.

  • Consensus –

A transaction is only approved when all parties agree to a verified network transaction.

  • Trustworthy Information –

Once the records are committed to a shared ledger, they can’t be tampered with. They become indelible and remain trustworthy. They can’t be removed from the event track.

  • Contracts –

Codes execute according to a triggering event and built within a blockchain. These codes can be auto-executed. For example a statement like “if this then that.”

  • Not Reversible –

A transaction can’t be revert once completed.

Blockchain On Leveraging Big Data

Due to the reduced cost of electronic equipment like processors and sensors and improved broadband connections the feasibility of smart cities is now accelerated which makes it possible for municipalities for collecting more accurate and significant data associated with various kinds of transactions.

This can lead to more precise policies and solutions to get to the root of issues. If this city data is moved on to the blockchain, then it could improve and streamline municipal service delivery for the residents and the cities. Blockchain works on open data policies which encourage innovators such as developers to find data patterns.

These patterns develop solutions which can offer better and convenient services to residents. Blockchain can increase the area and speed of these public services making them available to all like transportation, healthcare, alternative energy, etc.

Blockchain On Alternative Energy

Blockchain can also impact the energy sector of a city not to mention positively. Blockchain allows the transfer of electricity credits and executes them through a low cost, secure and digital database pr ledger that is public so that all users can refer to it.

Like residents can sell the excess solar energy to neighbors or nearby residents and can finance the installation and in shortage cases, the power grids can be used by residents as a backup. This sustainable energy shift is self-financed, cost-effective and prevents waste associated with centrally distributed and produced power which causes expenditures for local and state capital.

The Blockchain Is Perfect For Smart Cities

A quick showcase on why blockchain is perfect for smart cities and what can it improve:

  • Improving government management.
  • Improving sustainable transportation.
  • Improving urban planning.
  • Improving ideas for smart building.
  • Improving public safety.
  • Improving the environment.

With all the above information, it is sure that blockchain as a form of technology can improve how smart cities work. All this above-provided information is not only theoretical as there are some projects launched that are empowered with blockchain. Real property, public sector, sharing platforms, etc. there are many examples of the application of blockchain. In the future, these projects will be very successful, and blockchain will be a great asset to the society.

Article by Saurabh Hooda, Hackr.io