How Blockchain can be Applied to Run Smart Cities

Wondering how Blockchain can contribute to run smart cities? Well, we have got you covered. This article will explain the potential benefits of Blockchain technology and its use-cases across smart cities.

Table of Contents



  • Blockchain is Bigger than Cryptocurrency 
  • Benefits of Blockchain for Running Cities
  • Blockchain’s Use-Cases for Running Smart Cities
  • Concluding Lines 

Blockchain is Bigger than Cryptocurrency 

Although Blockchain was initially created as a digital platform for cryptocurrencies, technology has its implications in other domains, such as the management of smart cities. The smart-city era presents a variety of possibilities for Blockchain development. 

With the proliferation of technologies such as IoT, cloud computing, and others, smart cities are capable of delivering innovative solutions and direct collaboration between citizens and the local government. But despite several benefits, digital disruption is one of the major issues related to information security and privacy.

Blockchain, with its decentralized P2P network and distributed ledger, guarantees to secure transactions on the Internet, thus promising to revolutionize the management of smart cities. 

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Benefits of Blockchain for Running Cities

Before understanding the use-cases of Blockchain in smart cities, let’s explore the advantages of using this technology for running smart cities.

Enhanced transparency and connectivity

Blockchain has the ability to interconnect cities in terms of energy, mobility, security, privacy, etc. through a single distributed system, enabling cities to exchange crucial information and facilitate financial transactions in a secure and transparent manner.

Direct communication

Blockchain can ease the communication between the departments of governments and the public, allowing them to communicate digitally, thus speeding up the entire process. The best part is that the cost of intermediaries or middlemen is reduced to a great extent.

Integrity over information

With Blockchain, one can encrypt a file totally or partially depending upon which information needs to be shared. Information can be shared securely, privately, without any manipulation.

Efficient management

Blockchain enables city officials and the public audience to understand the source and destination of each resource, thus bringing better efficiency without compromising people’s privacy.

Blockchain’s Use-Cases for Running Smart Cities

Blockchain can play a crucial role in providing a secure framework for advanced urbanization. Various countries and cities such as Estonia, EAE, China, USA, and others have already started leveraging distributed ledger technology for development purposes. Blockchain-enabled cities/countries can help in providing a conducive investment climate for enterprises, better lifestyle to residents, and can enable maximization of resource utilization and transparency for government institutions. 

Universal ID Cards

It certainly is attractive to think that universal IDs could help counter terrorism, increase national security, deter ID fraud, and make the lives of citizens easier. Using Blockchain technology, identity information could be stored securely using cryptography. Another crucial advantage of this technology is that it could give people more control over their personal data. 

Resource Management

Blockchain technology can play a major role in resource management. With distributed ledger technologies like Blockchain, smart cities are able to prioritize renewable energy, conservative water usage, and mitigate the pollution. Data related to these resources are stored on the immutable shared ledger, which is updated regularly, helping authorities to make wiser decisions.

Moreover, in energy management, DLT can track the entire chain of custody for grid materials, improving performances for utility providers. The blockchain-powered P2P energy market also allows customers to create and trade energy without involving any middlemen.

Securing IoT Devices

IoT devices play a major role in smart cities as they are helpful in storing a sheer amount of data, but they lack reliability, privacy, and scalability. Blockchain can be seen as a viable solution in dealing with such IoT concerns. Technology, with its decentralized nature, has the potential to eliminate a single point of failure, thus creating a more resilient ecosystem for smart devices. 

Enable Cybersecurity

Cybercrimes are increasing with each passing day. Blockchain allows smart cities to switch from conventional non-effective paradigm by making investing and operational procedures extremely secure in smart cities and by granting the highest possible levels of data integrity, validity, and immutability. Technology can host and manage vital services such as energy & water distribution, public transportation, emergency support, etc. in a secure manner.

Concluding Lines

The time has come to change the game for smart cities in order to generate better revenues and boost economics, and Blockchain as the potential to do so. Technology can act as a crucial component that can help in avoiding outdated systems and build long-lasting solutions for smart cities. Blockchain innovation can be seen as a one-stop solution in enhancing smart cities and providing better liveability and economic development. But in order to utilize its benefits, it needs to be adopted by the Smart Cities Mission.

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