Page 12 - U4SSC Blockchain for smart sustainable cities

For example, smart systems will facilitate better management of recycling and the overall disposal of
waste, thus ensuring sustainability. In general, from the optimization of transport networks and resource
management, through intelligent platforms for capturing and analyzing environmental and behavioural
data, the development of smart cities infrastructure can enable better strategies for sustainable urban
development and help to create an appropriate, safe and sustainable urban ecosystem.

However, there are many challenges associated with the implementation of a smart city. In addition to
ICT security issues, smart cities are primarily concerned with the question of how automation, as well as
communication can be handled between people and ICT devices. Technical, social and regulatory challenges
must be considered. In this scenario, technology is only part of the puzzle; the main challenge lies in
demonstrating and uncovering innovative business ideas, regulatory frameworks, governance arrangements,
partnerships, institutions, processes, and incentives for the benefit of all.
With the adoption of emerging technologies like the Internet of things (IoT) for facilitating smart city
transitions, there is a surge in the number of sensors and devices within the smart city ecosystem. With
the traction gained by IoT within smart cities, there is an increase in the generation of data, which can be
leveraged by artificial intelligence (AI) for active training and the operation of real-time smart machines to
automate the provision of certain services. However, the trade-off between data transparency (and privacy)
and the utility of AI in supporting Big data analytics, is the foremost concern for smart city stakeholders.
In this context, blockchain technology is increasingly seen as a tool for boosting data transparency and
traceability in smart cities. As a decentralized IT infrastructure, blockchain technology can serve as a
suitable means to manage the growing networks emanating from smart cities in terms of monitoring
supply chains, executing and validating data trails along with ensuring authenticity and integrity of data.
Blockchain technology through secure and transparent infrastructure promises an immutable and traceable
exchange of sensitive data and property values, not only between people but also between machines.

As a result, blockchain technology is increasingly catching the attention of companies, as well as public
institutions. Cities can use blockchain to create a secure and shared ledger to manage real-time data in
transportation, energy and utilities. The implementation of the technology can help cities to streamline
how they interface with citizens, reduce resource consumption, and share public data with authorized
third parties. Furthermore, the infrastructure of the future will require high-security standards to reliably
guarantee the required degree of networking, automation, decentralization and participation. These
requirements are aligned with the SDG 11: “Make cities and human settlements inclusive, safe, resilient
and sustainable”.
The benefits of blockchain for government and public services and information about potential application
areas and use-cases can be found in relevant literature, including academic papers and other reports. More
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than 200 initiatives relating to blockchain for governments can be identified in over 45 countries. Many cities
around the world are planning, developing or launching blockchain-based applications. These projects are
undertaken mostly at the local level as part of the smart cities initiative’s overall efforts towards shaping
the cities’ futures. Nonetheless, the early stage of the blockchain development and the lack of in-depth,
use-cases analysis make it challenging, considering the different requirements of each solution, the varying
characteristics of blockchain technology and the distinct design approach of each use-case in addition to the
limitations and uncertainties. All these aspects create a gap between the existing knowledge on blockchain
application in the city context and the actions of the urban planners and policymakers.

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