The Role of Blockchain and IoT in the Future of Smart Cities and Houses

We’ve reached The Fourth Industrial Revolution, and along the way, it brought the concept of smart cities and homes. Who would have thought that one day we could integrate technologies in a way that it would perform most of our daily tasks? It’s not a utopia anymore but the whole system which allows optimizing technological performance to attain the best outcome for citizens and households. The intention of smart cities and houses has a common ground of carrying out efficient and sustainable operations. As urban areas are expanding, there is an obligation to provide all fundamental needs to people in a sustainable and clean way.

These concepts implement information and communication technologies, connected devices, and smart data storage. Leading technologies of this process are blockchain and internet of things (IoT). Blockchain is a digital distributed ledger technology that allows an effective and secure way of storing and sharing information. It creates digital blocks that contain encrypted data of every action performed on a ledger. IoT works as a connected network of devices. Generally speaking, it synchronizes various devices to share information. Blockchain and IoT are catalysts for smart cities and houses, and in this article, we will talk more about their role in this futuristic concept.

Why do We Need Smart Cities and Homes?

The amount of smart cities around the world is growing, but to understand this approach better, we need to dig deeper into the question of why do we need them. Autonomous cities and houses integrate technologies to make operations more efficient, eliminate unnecessary work for people, share information, and make it more personalized. The bigger goal of the idea is to build environmentally-friendly cities and households, reduce consumption and waste, improve a sustainable way of living.

Many governments notice these benefits and therefore try to transform their cities to be more environmental-friendly and automated. Numbers show that in 2015 spendings for smart cities were 14.85 billion USD, and in 2020 it’s predicted to reach 34.35 billion USD. As the market is quickly growing, more and more technologies are being incorporated to enhance this smart concept. Two most noteworthy are blockchain and IoT and to better understand their impact on the growth of smart living, we’ve highlighted relevant features.

Blockchain’s Role in Smart Cities and Houses Development

Blockchain companies are playing a significant role in smart cities and houses development. Technology’s features as immense amounts of storage, security and immutability levels serve the primary needs of autonomous areas. To be more specific, blockchain technology has plenty of use cases for smart households, but the focal ones are predicted to be:

Additional payments — cryptocurrencies are based on blockchain; thus it could open doors for broader payment options. The feature does not only include payments but also smart banking, managing your budget or administrating taxes…

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