Could Bitcoin’s Blockchain Run An Entire City?

The smart city is not a pipe dream, but it is a big, intimidating problem. We’ve become very good at networking together devices and their people.

But modern cities are uniquely monstrous entities, often with millions of individuals creating billions of variables each and every day. It’s not just about tracking and coordinating all these variables in an efficient way; it’s also about doing so safely and securely. If you think cyber war is a threat today, wait until it could shut off power to whole areas or individual homes, bring all transportation to a grinding halt, and even mess with the city gardeners! As we inherit the advantages of automation in civil planning, we gain the disadvantages as well.

But there’s one up and coming software technology that was specifically designed to coordinate lots of things safely and securely: the Blockchain, which was first brought to the public’s attention through its use in the Bitcoin cryptocurrency. Also known as a cryptographically secured distributed ledger, a Blockchain keeps a cloud-based copy of organized information (basically a spreadsheet) and continually performs the tough computational work of encrypting it all in close to real time. That sounds like exactly what we need, and in fact cities in China, the United Arab Emirates, (UAE), and elsewhere have been eyeing the technology to deal with their smart-city needs.

The idea is that by using a cryptographically secured and totally decentralized authority that can work at the speed of a computer, we should be able to keep power distribution, water treatment, self-driving transportation, and much more from ballooning beyond all practical limits as cities continue to grow. With a robust public Blockchain in place, cities could provide payment options for every business — why use your old plastic card, losing a fraction of the payment to an intermediary like a bank or credit card company and driving up the price, when you can transfer money quickly and securely, directly to a business owner?

However, in many ways the true promise of the smart city is what it could do to shrink the communities of modern urban environments, bringing people together with well-designed enhancements to the city’s level of interactivity. Smart coordination could let people intentionally organize much more easily by providing geolocated digital services, or easy event promotion to local citizens. It could also, under a more aggressive model, intentionally funnel people through their day so they end up being exposed to more social interaction, or more community culture.

At this point, it seems more likely that personal objections to the invasiveness of the programs will do more to block smart city functionality than technological barriers.

There are basically three reasons to turn to the Blockchain for a smart city: You’re an insurgent power in search of distinguishing features and the capacity to somehow continue your current, enormous rate of growth indefinitely (China); you’re a holiday destination with an economic incentive to stay ostentatiously futuristic (Dubai, in the UAE); you’re becoming so unwieldy that the concept of continuing to organize via old-world systems is just absurd (Los Angeles, maybe?).

It’s a risk, certainly, since any new technology  can fail or, at least, fail to live up to long term projections. There are many in the Blockchain world who think it may not be able to live up to its incredible disruptive potential, and that it could be incapable of expanding much beyond its current scope. It takes an incredible amount of computing power to secure all those transactions and, more importantly, running all that computation requires an ungodly amount of electricity — by one estimate, running Bitcoin could soon take as much energy as Denmark.

Not just for smart cities, there are multiple pushes to avoid this fate — from the enormous open source collaboration  of the Open Ledger Project to the more closed academic approach of bsafe.network, there are plenty of bids to fix the Blockchain before it breaks, potentially tanking it. Their main goals are to figure out how to achieve all the block chain’s core functionality, with no downgrade to security , much, much more quickly and efficiently.

Even with a hypothetical Blockchain 2.0, however, one efficient enough to allow millions of transactions per day, we’re going to need a method of power, both computing and electrical. The city could just provide all this and run the Blockchain as a pure social service, of course, but that would be extremely expensive. It would also centralize power, undoing some of the distributed nature of the service and potentially undoing one of the block chain’s core appeals to security.

The basic trade-off of all current Blockchain designs is that someone has to donate the time and money necessary to process changes and secure them cryptographically. Classically, that has been achieved by coupling the Blockchain to a cryptocurrency — in a sense, the Blockchain needed Bitcoin just as much as Bitcoin needed the Blockchain. This means that if you’re going to make and maintain a Blockchain, you’ll need to provide some equivalent incentive. It could be simpler when dealing with a government and non-anonymous transactions, and could in principle come in regular US dollars, rather than fancy crypto-bucks like Bitcoin or Ether. It could also come in the form of tax breaks or similar economic advantages, perhaps offloading the burden to corporations with the most to gain by exploiting such schemes.

In any case, the Blockchain is simultaneously one of the only software technologies that could possibly provide for the needs of a truly smart city, and a potential dead-end that accomplishes little while breaking the municipal bank. But regardless of the tech  behind it, we need to move to more efficient and successful models of living: As is often pointed out by smart city advocates, about half the world’s population currently lives in cities, but by 2050 that number is projected to increase to 66%.

How will cities — both existing ones growing to all new sizes and new ones springing up in developing nations — manage their ballooning organizational problems and stay competitive in the global market? The answer might just be the Blockchain. And if not, the answer might be nothing at all.

Ein News

« Cyber Insurance: Security Tool or Hype?
As Pentagon Dawdles, Silicon Valley Sells It’s Hottest Technology Abroad »

ManageEngine
CyberSecurity Jobsite
Check Point

Directory of Suppliers

ZenGRC

ZenGRC

ZenGRC (formerly Reciprocity) is a leader in the GRC SaaS landscape, offering robust and intuitive products designed to make compliance straightforward and efficient.

Practice Labs

Practice Labs

Practice Labs is an IT competency hub, where live-lab environments give access to real equipment for hands-on practice of essential cybersecurity skills.

CSI Consulting Services

CSI Consulting Services

Get Advice From The Experts: * Training * Penetration Testing * Data Governance * GDPR Compliance. Connecting you to the best in the business.

TÜV SÜD Academy UK

TÜV SÜD Academy UK

TÜV SÜD offers expert-led cybersecurity training to help organisations safeguard their operations and data.

IT Governance

IT Governance

IT Governance is a leading global provider of information security solutions. Download our free guide and find out how ISO 27001 can help protect your organisation's information.

IronScales

IronScales

IronScales combines human intelligence with machine learning to automatically prevent, detect and respond to email phishing attacks.

Cybraics

Cybraics

Cybraics nLighten platform implements a unique and sophisticated artificial intelligence engine that rapidly learns your environment and alerts security teams to threats and vulnerabilities.

RCMP National Cybercrime Coordination Unit (NC3)

RCMP National Cybercrime Coordination Unit (NC3)

As set out in the Government of Canada's National Cyber Security Strategy, the RCMP has established the National Cybercrime Coordination Unit (NC3).

NeuroChain

NeuroChain

NeuroChain is an intelligent ecosystem that is more secure, more reliable and much faster than blockchain.

OriginalMy

OriginalMy

OriginalMy is a cybersecurity startup, focussed on digital governance and information authentication. Its mission is to prove authenticity using state-of-the-art cryptography and blockchain technology

Axur

Axur

Discover and eliminate digital fraud and risks on the web. Utilize Axur’s entire AI potential, along with thousands of bots dispersed throughout the surface web as well as the deep and dark web.

Cythereal

Cythereal

Cythereal is the leader in predicting and preventing advanced malware attacks. Security Automation for the Overwhelmed Administrator.

PCS Security (PCSS)

PCS Security (PCSS)

PCS Security provides secure, reliable and state-of-the-art security solutions to help our customers address their security concerns.

SharkStriker

SharkStriker

SharkStriker is a US based managed security services provider with SOCs and offices across the globe.

Security Risk Advisors (SRA)

Security Risk Advisors (SRA)

Security Risk Advisors deliver cybersecurity services to leading companies in the Financial Services, Healthcare, Pharmaceuticals, Technology and Retail industries.

TraitWare

TraitWare

The TraitWare mission is to increase user and company security while simplifying access to digital and physical resources through the elimination of the need for usernames and passwords.

Keeran Networks

Keeran Networks

Established in Edmonton in 1999, Keeran specializes in delivering comprehensive IT support and solutions aimed at optimizing technology investments for businesses.

Cypheria

Cypheria

Cypheria harness the expertise of elite military units and combine it with extensive digital combat experience to deliver unparalleled security solutions for organizations.

UltraViolet Cyber

UltraViolet Cyber

UltraViolet is an industry leading tech-enabled managed security services company.

Ciena

Ciena

Ciena is a global leader in optical and routing systems, services, and automation software. We build the world’s most adaptive networks to address ever-increasing digital demands.

Forrit

Forrit

Forrit is the secure and scalable Content Management System (CMS) built specifically for large enterprises in highly regulated sectors.