Smart city and blockchain: buzzword or paradigm shift?

Abstract

The McKinsey Global Institute estimates that by 2025 cities will account for 60% of global GDP, and the number of smart cities will reach 600 by 2020. In addition, according to the International Data Corporation (IDC), more than 60% of global GDP will be generated as digital income by 2022, resulting in a redesign of existing business and administrative models. As a result, within 5 years we will also see completely new technological advances at the municipal level that can greatly enhance our ‘user experience’. We will be able to obtain services also at the municipal level that simplify and facilitate our everyday urban life. This process will be largely supported by the blockchain technology. Blockchain technology will have a significant impact on our city lives, economic life will undergo a paradigm shift and many local ecosystems will change for the better as it can provide free access to values and capital in a digital, secure and traceable way. In the future, for example, a Smart City will be able to raise new funds for its development through asset tokenisation. This study explains what makes blockchain technology cutting edge and what development ideas for smart cities can arise from it.