Page 13 - U4SSC Blockchain for smart sustainable cities

1.2 Purpose and objectives

The blockchain for cities (B4C) report is part of the efforts of the United for Smart Sustainable Cities
(U4SSC) initiative to support long-term strategies for smart and sustainable cities. The primary purpose
of this report is to understand the potential for blockchain as a central technology for initiatives aimed at
making cities smarter and more sustainable. The objective is to better understand the effectiveness and
relevance of blockchain technology in the context of the city. It explores and analyzes the potential, the
transformative effect, the benefits and the challenges of blockchain technology for cities and proposes
a framework defining the most important dimensions to be considered for blockchain applications, in
accordance with the contextual and cultural specificities of each city.

This report intends to provide a better understanding of the blockchain technology, as well as underscore
policy recommendations to guide local and city managers, decision-makers and policymakers on key
considerations for the application of blockchain technologies in their smart city initiatives. In alignment
with the principles of the U4SSC initiative, this deliverable does not intend to promote the adoption and
use of blockchain technology. Conversely, it advocates for policies encouraging responsible use of ICTs
that contribute to the economic, environmental and social sustainability as well as the advancement
of the 2030 Agenda for Sustainable Development.

1.3 Approach

To achieve the purpose of this study, the approach adopted for this report was based on extensive desk
research and document analysis, interviews as well as on the combining of qualitative and quantitative
data-collection methods. This study commenced with the collection of data from city and municipality
managers and officials through a questionnaire. The purpose of this survey was to better comprehend
and evaluate the level of understanding as well as the level of interest in blockchain technology at
the local government level. The results of the survey guide the definition of the purpose and focus of
the study. The analysis demonstrated the interest of the cities towards blockchain technology (77%),
limited understanding and knowledge of blockchain (82%), an essential need of exemplar use-cases
and application of the technology in the context of public service and at the smart city level (68%) as
well as the need to identify the benefits and risks of blockchain (61%).

In addition to examining the responses to the questionnaire, an extensive document and literature
analysis on blockchain technology was conducted. This phase was supplemented with interviews of
experts in the field (including practitioners, academics and developers) to clearly understand the
complexity of the technology and its characteristics, properties, benefits and challenges, specifically in
the context of local public service and city initiatives. Following this, different use-cases were collected,
of which 13 were selected. This phase allowed the development of a preliminary framework highlighting
the need to better understand: the use and adoption of blockchain in the city and settlement context;
the urban and local challenges addressed by the use of blockchain technology; and the need to identify
the potential benefits and challenges related to the development of blockchain solutions for cities.
These aspects lay the foundation for analyzing the readiness through the definition of the solution
requirements, the resources and capabilities needed for B4C, as well as addressing compliance with
the sustainability dimension and the relevant SDG.

U4SSC: Blockchain for smart sustainable cities 3