Is the Development of Smart City Due to Blockchain

With the development of society and the change of population structure, the latest technological development makes many industries deeply affected by the new consumption mode. Therefore, the government and enterprises are turning to innovative R & D to cope with the negative impact of urban population growth.

Facing the needs of urban development, the government regards "smart city" as an important part of urban construction. This brings us to an important question - what is a smart city?

Techopedia defines smart city as follows: Urban Life combines information and communication technology (ICT) to improve the quality and performance of urban services, such as energy, transportation and utilities, so as to reduce resource consumption and overall cost.

In short, smart cities use technology to enhance livability. Such a city can not only meet the needs of citizens, but also improve operation efficiency and environmental sustainability to the greatest extent.

Creating a smart city is not easy and requires sufficient resources. Blockchain technology can help the government easily create a smart city.

Why does blockchain go hand in hand with the concept of smart city?

Blockchain is a decentralized and immutable ledger. It is not only safe, reliable and transparent, but also an excellent tool to eliminate corruption and inefficiency in smart cities.

The following are the important roles of blockchain in building a smart city:

Data is transparently shared among multiple parties to ensure the accuracy of information

Data is secure - there is no risk of tampering

The data is decentralized and has verification requirements

With the transformation from manual services to digital services, these blockchain functions can reduce the risks related to data security and ensure that information and transactions are processed in an effective, transparent and honest manner.

Eight areas of blockchain Technology

In the process of simplifying a series of industry processes, blockchain technology plays a vital role in the development of smart cities. It is mainly reflected in the following eight areas:

Payment and remittance

The payment solution supported by blockchain is very suitable for some companies with remote collaboration. Similarly, small business owners can use blockchain to transfer funds to anyone safely and quickly without paying any additional transaction fees to intermediaries.

Government agencies can also use this transfer method, including but not limited to urban project assistance, welfare, pension, salary, etc.

Urban governance

Blockchain can help promote urban governance with the help of a series of active smart contracts. From the openness of voting to automatic approval procedures, tax declaration, tracking asset ownership, etc., blockchain can make the whole system run smoothly.


The insurance industry has been hardest hit by online fraud. It is estimated that by 2020, insurance companies will lose $4 for every $1000 in revenue due to fraud. So far, this figure sounds very small, but it is predicted that it may cause global enterprises to suffer losses of more than $25.6 billion.

The technical application of blockchain in this field is a digital signature based on public key cryptography (rather than a system based on conventional password), which can help track and manage digital identity.

supply chain management

With the support of smart contracts and other related applications, blockchain can easily help manage the supply chain. From food and agriculture to logistics and other industries, blockchain can improve the transparency between producers and consumers in the system.


Healthcare is another industry that can benefit from blockchain. A decentralized ledger can be used to store the patient's personal details, which can be shared by the hospital with other entities, but the specific information depends on who the patient wants to share with.

This will not only facilitate the effective submission of insurance claims, but also exclude any data tampering.


Blockchain not only helps to simplify the process, but also controls the environment as much as possible. It can be used to track the carbon footprint of electrical appliances, vehicles, etc. Records cannot be modified so that they can be used to determine the amount of carbon tax charged at the point of sale.


The blockchain based P2P energy trading solution can help communities easily use solar energy and other sustainable alternative energy. Thanks to its invariance, the blockchain eliminates the need for intermediaries and individuals can produce, buy, sell and trade energy.

In addition, blockchain can be integrated with IOT sensors and artificial intelligence (AI) to promote better garbage collection management.


Blockchain provides a secure mechanism to store and verify user identity in the form of decentralized identity management system. Such a solution not only facilitates easy storage, but also helps governments detect identity theft and other related fraud.

Smart city: application example of blockchain

Dubai: "the happiest person on earth"

As the enterprise blockchain solution is still in its early stage, the management expenditure may be high initially. Compared with traditional it upgrades, the distributed nature of the blockchain reduces the necessity of audit, redundant backup processes and disaster recovery projects.

"Smart Dubai plan" is widely known in the blockchain field because of its innovative and revolutionary characteristics. The cooperation between the Dubai government and private enterprises began in 2013 and aims to achieve a wise transformation to "provide residents and tourists with an efficient, safe and influential urban experience."

Their goal is to make their people the happiest people on earth. Similarly, Dubai 2021 smart city is a road map, which envisages that Dubai will become the world's leading smart city by 2021.

Dubai is not the only country in the region committed to building a smart city. According to the vice president of the United Arab Emirates, 50% of government transactions will be processed through blockchain by 2020. This can not only transfer quickly, but also save resources.

Sweden: "intelligent solutions for sustainable cities"

"Swedish smart city" is a national platform for smart and sustainable urban solutions. The funds are funded through public and private channels, focusing on air quality, bioenergy, biogas, smart grid, smart travel, waste management, energy control and water.

In Sweden, "smart city" is a development trend. The horizontal management process is considered to be more productive for long-term construction, and the interdisciplinary approach is preferred to build trust.

They also need to comply with the United Nations global sustainable development goals, which goes hand in hand with the country's collective consciousness. It is not surprising that Stockholm was recognized as the first green capital of Europe in 2010.

Smart city initiative in Estonia

Estonia's smart city initiative stems from its political and economic background. At independence in 1991, the establishment of a new government brought information and communication technology (ICT) solutions. Residents receive an ID card with a chip that can access all data on their digital identity.

This means that 97% of schools are online, voting has been digital since 2007, and in 2017, tax returns took three minutes to complete.

Estonia, which has 1.3 million residents, has made every effort to ensure the integrity of data in medical records. This may be why the Estonian e-health foundation has launched a project to store the health records of all patients and similar personnel.

Singapore - a "smart country"

The goal of Singapore's "smart country" is to create a "government with digital as the core and serving wholeheartedly". The former means changing the way citizens and businesses are served, which involves the use of data, connectivity and computing.

The digital government blueprint was launched in 2018, outlining the government's five-year road map of "using digital technology to change the way it serves the public". Singapore follows three main pillars: digital economy, digital government and digital society.

Transforming a city into a "smart city" requires a long-term plan and integration of various technologies, including blockchain. However, it is crucial to highlight artificial intelligence (AI), Internet of things (IOT) and big data as key components of smart cities.

Source: Yongqi technology R & D Center

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