Blockchain is a distributed ledger technology that enables the creation of a decentralized, secure, and immutable digital record of transactions and data. Each block in the chain contains a list of transactions and is cryptographically linked to the previous block, forming a continuous chain of blocks that is consensually updated among multiple nodes in the network.
Applications in Smart Cities: In the context of smart cities, blockchain can be used for:
- Data Management: Ensuring the integrity and transparency of data collected by sensors and IoT systems in the city.
- Transparency and Security: Improving transparency and security in government processes, such as electronic voting and digital identity management.
- Energy and Resources: Facilitating energy trading between citizens through microgrids, where residents can sell excess solar power directly to their neighbors.
- Mobility and Transport: Managing and verifying transactions related to transportation, such as payments for shared vehicle use or toll systems.
- Circular Economy: Implementing more efficient and transparent waste management and recycling systems.
Relation to Smart Contracts: Smart contracts are self-executing computer programs that run automatically when predefined conditions are met. These contracts are stored and executed on a blockchain, ensuring their immutability and transparent execution. In the context of smart cities, smart contracts can:
- Automate Processes: Facilitate the automation of administrative and commercial processes without intermediaries, reducing costs and time.
- Promote Transparency: Ensure that transactions and agreements between citizens, businesses, and the government are conducted transparently and reliably.
- Improve Efficiency: Optimize the management of public services, such as water and electricity distribution, through the automation of contracts based on actual consumption.
