Why Smart Cities Need Blockchain Technologies

SEP 20, 2022

Smart cities continue to grow across the globe as more governments embrace digitalization. The term smart cities refer to a utopia urban development that uses emerging technologies to run day-to-day activities. All this is being done through Blockchain4Cities, an initiative to coordinate control and integrate different services with transparency, privacy, and efficiency features through blockchain technology.

Smart cities like Wyoming have gone so far as to great regulatory frameworks that help integrate blockchain into the city's systems. On the other hand, Dubai has created over 20 blockchain use cases across eight industry sectors in addition to blockchain policies for its industry.

How blockchain will work in smart cities

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Smart Health

The healthcare industry has seen increased patient data transmitted between healthcare providers and insurance companies. This information is private and requires a high level of security. Blockchain technology ensures data protection, integrity, shared access, and transparency. In addition, blockchain provides decentralization of data, which helps doctors and other health givers get patient information faster in emergencies.

Supply Chains

Blockchain can be used in supply chain processes to manage the flow of goods and services between various networks within the city. The technology can also trace business transactions in real-time to ensure due process is followed in delivering goods and services. Blockchain can help reduce uncertainties, operational inefficiencies, and information asymmetry.

Public Administration

According to records, half of the world's population already lives in cities across the globe. These numbers continue to grow as more and more people move to the cities searching for better opportunities. As these numbers continue to grow, cities will have to turn to blockchain and other better administration technologies. Blockchain has the power to help public administrators widen the scope of the services they offer their citizens. For instance, while responding to citizens' concerns, administrators can use the technology to provide government transparency by sharing the necessary data on how services are provided. Blockchain can also help reduce fraud cases in public offices by recording all transactions on the blockchain.


One of the best use cases of blockchain technology is its ability to simplify various processes. For the education system, blockchain helps with the tremendous amount of student data. Different education institutions can come together to create a centralized immutable database that will make it easy to share and access information.

Increased energy savings

Smart cities can use blockchain for resource conservation as the world strives to reach its sustainability goals by 2030. For instance, authorities can create blockchain-based networks that monitor citizens' energy consumption. Also, the technology can be useful in helping redistribute unused green energy to others within the city in exchange for incentives or additional income.

Improve cybersecurity

A recent report on cybersecurity suggests that companies will lose about $10 trillion by 2025 through cyber-related crimes. Blockchain security features make it the ideal cybersecurity solution to protect user data from unwanted parties. Blockchain also can protect user identity by preventing identity theft, to name just a few.

Better waste management

Smart technologies can use blockchain to maintain high hygiene and a clean overall environment. The technology can provide real-time tracking of various waste management processes. Also, authorities can incentivize the waste management process to ensure more user participation.

In conclusion, as smart cities continue to gain traction, blockchain stances to help improve public strategy, sustainability, energy efficiency, and overall quality of life. In addition to the above use cases, there are a few more use cases, including but not limited to transport management and various government services.

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