Page 36 - U4SSC Blockchain for smart sustainable cities

4. Blockchain for cities: use-cases

4.1 Blockchain for cities

As stated previously, a smart city fosters interaction among citizens, the public sector, and other
stakeholders such as the communities using digital technologies to improve quality of life, efficiency and
security. Blockchain, through its continuous distributed ledger, allows and multiplies the possibilities
of interaction models which could not be designed by centralized models. 45

The concept of “smart cities” is presented as one of the key areas in which blockchain-based
applications are expected to drive radical and disruptive innovations. Blockchain arises in an era in
which the management and services of cities are being digitalized and are developing their “smart
cities” initiatives. Public administrations at all levels worldwide are facing a growing demand to fight
corruption; to improve the efficiency, transparency and security of their systems; and to develop a more
collaborative, interactive and democratic platform for the provision of services. Blockchain holds the
potential for the improvement of many of these aspects through transparent, neutral, non-hierarchical,
accessible, non-manipulable and secure information and value platform. 46

Blockchain is considered especially suitable for environments in which there are multiple stakeholders
and low levels of trust between the actors, which is one of the main features of the complexities and
the governance of current urban cities. Some studies proposed models of classification of blockchain
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technology applications and use-cases. These related efforts of organizing the blockchain technology
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applications are particularly useful for analyzing the data. However, some of these categories could be
difficult to use and apply, especially in the smart city context. For example, a smart contract category
could be applied to different domains and be combined with other applications in the same use-case.
It is also challenging to classify some blockchain-based smart city initiatives between dynamic and
static hyperledger exclusively, when it is often used in combination with other technologies that could
impact the properties.

For this report, it was decided to explore the potential of blockchain-based applications and organize
them in the context of the smart city domain. Given that blockchain for cities can be implemented by
governments as well as by private entities or other stakeholders, it is relevant for different verticals of
smart cities. In tables 5 and 6, examples of potential blockchain applications that can be adapted for
smart cities are presented and organized by verticals. It is possible to find examples associated with
the governance, administration and government of a smart city. The purpose of these applications
includes the optimization of the sustainability and reduction of externalities. 49

26 U4SSC: Blockchain for smart sustainable cities