Page 73 - U4SSC Blockchain for smart sustainable cities

(3) Blockchain could support applications for incentive systems for environmentally sustainable
h
behaviours. Among the use-cases collected and analyzed, one consisted of a blockchain-based
reward system developed in Mauritius to promote sustainability and incentivize citizens to contribute
to the environment sustainability among other actions.

The main issue is related to the contradiction faced between blockchain technology and environmental
sustainability. It is often qualified as a non-sustainable technology. As explained in the first section,
blockchain technology in itself has an environmental footprint, especially in using the proof-of-work
consensus to validate the transactions. It is also important to highlight that effort and research
are conducted, notably, through the development of an alternative protocol to create new ways
to reduce the energy intensity, which will increase the opportunities of this technology to contribute
to sustainable development.

(3) Social and institutional sustainability

The social aspects of sustainability are focusing on well-being, social care, education, health and safety
use-cases. The social sustainability is also defined in the B4C use-cases by involving the human and social
value that can be driven through the smart people, the governance and the community initiatives. It is
measured by the contribution to the demographics, housing, education, security, health, well-being,
social and community services, expenses and public administration domains. All the B4C uses-cases
showed contributions to one or more dimensions of social or institutional sustainability (Table 2). From
one side, studies demonstrated that smart cities are failing at creating more inclusive, sustainable and
democratic cities as the emphasis is on the economic value and the technological aspects. From another
perspective, blockchain constitutes a relevant means to develop more sustainability at the social level,
as its features could reinforce the social and institutional level with more inclusion, empowerment,
transparency, accountability enhancing, bureaucracy reduction and power asymmetry. However,
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poorly planned blockchain-based smart city initiatives can cause more societal harm than they
contribute to sustainability. The negative outcomes of poorly planned blockchain activities include the
technological exclusion of people due to lack of accessibility to technology, low digital literacy, misuse
of sensitive and personal data, vulnerability and violation of privacy rights, economic and the market
interest being prioritized over social issues. Smart city initiatives and projects are providing increasingly
data collection and access to private and large technology companies without thoroughly assessing
the implications for the governmental institutions, the residents and citizens. Blockchain should be
leveraged for smart city initiatives that foster residents’ and citizens’ participation, involvement and
empowerment in the governance, regulation, data control and city planning to contribute positively
to the social, as well as institutional sustainability.

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h The use-case was not elaborated on in this report as it is classified as blockchain application initiated by civil society and not a blockchain for cities
use-case implemented by public entity.

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