Blockchain in smart cities

KardiaChain
KardiaChain
Published in
8 min readAug 1, 2023

Blockchain is a promising technology for smart cities. It can simplify processes, increase transparency, and improve security. However, it is a new technology with regulatory challenges to overcome. This paper explores the different applications of blockchain in smart cities and proposes a mechanism for implementation. Blockchain could be a key enabler for upgrading infrastructure technology in smart cities.

Introduction

Blockchain is a decentralized data storage and transaction technology that can improve the efficiency and transparency of smart city infrastructure. Blockchain can track and manage resources, such as energy and water, and provide secure and transparent transactions between citizens and businesses. Blockchain can also improve the security of smart city infrastructure by making hacking or tampering with data more difficult.

The main pillars of a smart city are physical infrastructure, institutional infrastructure, social infrastructure, and economic infrastructure. Blockchain can improve all of these pillars. For example, blockchain can track and manage energy consumption in smart buildings, provide secure and transparent voting systems, and create a more efficient and transparent financial system.

The application of blockchain within a smart city’s infrastructure is still in its early stages. Still, this technology has a lot of potential to improve the efficiency, transparency, and security of smart city infrastructure.

Here are some examples of how blockchain can be used in smart city infrastructure:

  • Energy and water management: Blockchain can track and manage energy and water consumption in smart buildings. This can help to reduce energy and water waste, and it can also help to improve the efficiency of the energy and water grid.
  • Transportation: Blockchain can track and manage transportation data, such as traffic patterns and public transportation schedules. This can help to improve traffic flow and make it easier for people to get around.
  • Healthcare: Blockchain can track and manage healthcare data, such as patient records and medical histories. This can help to improve the quality of care and make it easier for patients to access their medical records.
  • Financial transactions: Blockchain can make financial transactions more secure and transparent. This can help to reduce fraud and make it easier for people to make payments.

Blockchain Integration in a Smart City

Blockchain technology can address the challenges of smart city infrastructure. Blockchain is decentralized, immutable, democratic, pseudonymous, secure, and transparent. These features can help to improve the security, efficiency, and transparency of smart city infrastructure.

Here is a more detailed explanation of each feature:

  • Decentralization: Blockchain is a peer-to-peer network, which means that no central authority controls the network. This makes it more difficult for a single point of failure to occur.
  • Immutability: It cannot be changed once data is added to a blockchain. This makes it a very secure way to store data.
  • Democracy: Blockchain uses a consensus mechanism to validate transactions. This means that all nodes in the network must agree on the validity of a transaction before it is added to the blockchain. This makes it a very transparent and democratic way to manage data.
  • Pseudonymity: Blockchain nodes are identified by pseudonymous addresses, meaning their real identities are hidden. This can help to protect user privacy.
  • Security: Blockchain uses cryptography to secure data. This makes it very difficult for unauthorized users to access or modify data.
  • Transparency: All transactions on a blockchain are public. This makes it very easy to track and audit transactions.

These features make blockchain technology a promising solution for the challenges of smart city infrastructure. As the technology continues to develop, we can expect to see even more innovative blockchain applications in smart cities.

Methods

We reviewed case studies and research on blockchain use in various industries and proposed a smart city design incorporating blockchain into urban infrastructure.

We first studied blockchain technology and its existing applications in various industries. This gave us an understanding of how blockchain can be incorporated into sustainable infrastructures. We then investigated the potential sustainable applications of blockchain by reviewing case studies and research from other industries.

Our findings suggest that blockchain can potentially improve the efficiency, transparency, and security of sustainable infrastructure. We believe that blockchain can play a significant role in the future of sustainable infrastructure.

Hypothetical City Scenario: Application of Blockchain in Different Infrastructure Domains

This section proposes a framework for a smart city employing Blockchain technology in multiple infrastructure disciplines.

Infrastructure and Utility Industry

Utility Contracts Using Blockchain

The utility industry faces challenges in accountability and transparency. Budget overruns are common due to inadequate planning and antiquated budgeting techniques. Smart contracts can resolve this issue by generating investment tokens at each project phase.

Tokenization of previous projects makes it easier for clients to audit bidders and monitor asset development.

Environmental Regulations/Limits (Contracts on Carbon Dioxide CO2)

Blockchain can help governments address environmental restrictions by providing a secure and efficient way to trade carbon emissions. This can help reduce emissions and improve the environment. Blockchain can create a secure and transparent record of carbon emissions and facilitate carbon emissions trading. It can also constantly update the best trading route and schedule and improve the efficiency of the carbon trading system.

Data Management

Blockchain can make smart cities more secure and resilient to cyberattacks. It can do this by monitoring and recording data storage and by promoting a transparent and trustworthy environment for data sharing. This can help to improve the quality of life in smart cities by making them more secure and reliable.

Blockchain to Improve Infrastructure Cyber Security

Blockchain can improve the efficiency and security of city databases. This is because blockchain is a distributed ledger technology that allows for secure and transparent data storage. This can help to prevent data manipulation and ensure that all data is accurate. Additionally, blockchain can make it easier to access and share data, improving city operations’ efficiency.

Smart Cities Improving Government Management Systems with Blockchain

In an ideal situation, smart cities would employ information technology to integrate, run, and deliver better services for inhabitants by maximizing the use of available physical, social, and business infrastructure resources. Through the development of technologies such as Blockchain, cloud infrastructure, and connected networks, smart cities can provide inhabitants and local governments with simpler connectivity and collaboration. According to research presented by the Institute of Electrical and Electronics Engineers, digital disruption presents a variety of possible advantages in protecting information and confidentiality in an integrated security context for Blockchain technology.

Water Infrastructure

Water Pollution and Blockchain Tracker

Blockchain technology can track water pollution in real time and provide a comprehensive history of pollution in specific regions. This can help engineers to respond quickly to pollution incidents and enforce pollution limits more strictly. Additionally, the data collected by blockchain can improve transparency and decision-making around environmental issues.

Trade of Water Access Rights

Blockchain technology can track and make water rights trading more secure. This can help to ensure that water is traded fairly and efficiently and that water rights are not tampered with.

Power Infrastructure

Modern power systems are distinguished by their decarbonization, decentralization, and digitalization. This section focuses on a few methods for achieving these objectives and discusses examples.

Energy Internet

Blockchain technology can make energy transactions more secure and efficient. This is because blockchain provides an irreversible collective decision, which facilitates the execution of logical functions and algorithms to produce outputs. Additionally, blockchain can create smart contracts, which are self-verifying, self-executing, and self-enforcing state response rules. This can help to automate energy transactions and reduce the risk of human error.

Decentralized Energy Market (Tokenization)

Blockchain can create a decentralized energy market where users can sell excess energy to each other without needing a third party. This can help to reduce reliance on fossil fuels and make the energy sector more efficient.

Energy Consumption Tracking

Blockchain can track energy consumption and provide real-time data to users. This can help users to become more aware of their energy usage and make informed decisions about reducing their consumption. Additionally, blockchain can create a decentralized energy market where users can sell excess energy to each other without needing a third party. This can help to reduce reliance on fossil fuels and make the energy sector more efficient.

Carbon Footprint Tracking

Blockchain can track the carbon footprint of energy appliances. This information can discourage the use of polluting appliances and encourage the use of more sustainable products. This can help to reduce our environmental impact.

Intelligent Renewable Energy in a Smart Grid

Blockchain technology can create a smart grid in a smart city. This would allow for the bidirectional flow of electricity, enable energy trading without the need for third-party approval, and provide a larger market for both suppliers and consumers. This can help to integrate renewable energy more efficiently and make the city more sustainable.

Transportation Infrastructure

Personal Car Ownership with Blockchain

Blockchain technology can digitize the primary shareable asset in peer-to-peer car sharing. This can help to eliminate the need for an intermediary to collect insurance and service fees and help insurance companies customize fees based on vehicle use.

Blockchain and Intelligent Traffic Systems

Blockchain technology can connect autonomous vehicles, traffic systems, and IoT devices. This can help to improve traffic flow, prevent accidents, and make transportation more efficient.

Discussion

This study proposes a design framework to understand how blockchain can be integrated into the infrastructure and operations of a smart city.

The framework addresses the complex future of infrastructure sustainability regarding security and resource management while prioritizing user convenience, security, secure financial activities, and enhanced data monitoring.

The framework is based on the findings of previous studies on blockchain applications in major infrastructure sectors in modern cities, such as data management, cyber security, improving government management systems, water pollution, blockchain tracker, trade of water access rights, and power infrastructure.

The framework suggests that blockchain can improve security, efficiency, and inclusivity in the operation of smart cities.

Conclusions

Blockchain technology can improve the resilience and sustainability of infrastructure in smart cities. This paper reviews blockchain’s main applications in modern cities’ infrastructure sectors, such as data management, cyber security, improving government management systems, water pollution, blockchain tracker, trade of water access rights, and power infrastructure.

The paper proposes a design framework to understand how blockchain can be integrated into the infrastructure and operations of a smart city. The framework addresses the complex future of infrastructure sustainability regarding security and resource management while prioritizing user convenience, security, secure financial activities, and enhanced data monitoring.

The paper concludes that blockchain can potentially improve the efficiency and security of infrastructure in smart cities. However, some challenges still need to be addressed before blockchain can be widely adopted in this context, such as regulatory issues, cost of installation, and lack of a governance model.

Overall, this paper provides a valuable contribution to understanding how blockchain can improve the resilience and sustainability of infrastructure in smart cities.

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KardiaChain
KardiaChain

UNIFIED BLOCKCHAIN ECOSYSTEM — The first fully decentralised interoperable and self-optimised blockchain ecosystem