Smart cities are steadily gaining attention around the world. As these cities became an ambitious point for many jurisdictions. There is a very clear relationship in these urban utopias between the citizens they create and the systems, networks and devices that enable safe, secure and efficient operations. Most importantly, they will be built on an entirely new financial technology infrastructure that supports the flow of micropayments over the financial “water supply” in the same way that other essential utilities (water, energy, data, etc.) flow. through pipes, cables and fiber .
The main goal of smart cities is to optimize city performance and promote economic growth by leveraging cutting-edge technology. Smart cities try to increase operational efficiency. Achieve sustainability goals such as energy efficiency and resource scarcity management. and above all is to improve the quality of life of the people within
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Early but promising smart cities include Singapore, Dubai and Oslo, in Singapore, one of the most densely populated cities in the world. Sensors are used to digitize collect Traffic traffic and pedestrian activity information The data is then sent to the agency for analysis to decide on the appropriate action in terms of real-time flow redirection. Other areas of focus include the use of smart home technology to address issues such as waste management and energy efficiency.
It is therefore important to collect accurate and reliable data from connected devices. And the best way to get townspeople actively involved in providing this information from their devices is to incentivize them to do so. Obviously, there are some basic concepts that are required for the safety and welfare of citizens, such as digital identity. privacy and consent to sharing information And that will be a topic for another article.
Smart cities have a responsibility to their citizens to operate and report on sustainable infrastructure. and create environmental, social, and governance (ESG) determinants. In its design, the implementation of incentive plans to promote positive behavior tends to play a key role in solving the most important environmental, social and economic problems that people in these cities. that must face In fact, while cities continue action United Nations 2050 Climate Goals Under the Paris Agreement Such incentive schemes could be an important part of helping cities Reduce emissions and achieve a carbon neutral future
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Smart cities with integrated services are still a few years away. Implementation of an incentive system based on the ability to transfer small amounts of value. or micropayments It can accelerate the creation of smart cities. Simply put, micropayments are transactions for very little value. which is usually a fraction of a cent This is done in real time as the user or device actively interacts with the system or process. A specific example of this is the spread of the COVID-19 check-in and tracking process. We currently do not receive rewards for signing up at public establishments. But there may be a higher level of compliance if we do so. Any smart city initiative that require data collection for processing by the city’s analytics system. This responds by “stimulating” community behavior through rewards. will benefit from a payment infrastructure that supports micropayments citizens and all their equipment became “City informant (producers and consumers)” effectively. And get real-time rewards with micropayments for their contributions.
Smart cities need to buy from the public.
A successful smart city will have incentives at its core. Although in general People may support advances in technology to improve their quality of life. But in the past few years The misuse of personal data by centralized “Big Tech” platforms has created a public reluctance to engage in technology-driven data collection.
Amid the COVID-19 outbreak, data breaches have grown exponentially. Only confirmed data breaches in the healthcare industry. more A 58% increase in 2020, according to the same report. Overall web application breaches doubled between 2019 and 2020. Smart city initiatives need to address these data privacy and security concerns. This would be hampered by public concerns about how their data was used when the technology was adopted.
Related: Smart city is the future But it may threaten your privacy.
Consent-based incentives and trust building, therefore, are essential to driving smart city public recognition. If performed correctly with citizen privacy in system design Behavioral incentives can guarantee that a city runs smoothly and safely. People may be gently nudged to encourage them to respond in a particularly beneficial way, such as to promote road safety or waste recycling. In these examples Micropayments can be paid directly and in real time for compliance with variable speed limits. Reward the child for crossing the road in a safe place. or as a reward for properly disposing of different types of waste.
Decentralized Device Based Infrastructure
smart city People (and their citizens) depend on sensors and devices built into their fabrics. Connected Internet of Things (IoT) devices will be the eyes, ears, and hands of the city. It automatically collects everything from traffic movements to environmental factors, weather conditions, supply chain tracking. and management of urban resources (water, energy, waste, etc.). This information is used to inform and adjust policies and make real-time decisions to keep the city system running smoothly.
As new high-speed networks such as 5G or LoRaWAN grow, adoption and use of connected IoT devices for essential services and utilities grow. The demand for automated and device-to-device micropayments will also increase. Use cases include electric vehicles that automatically pay tolls. Automatic payment when delivered by drone or IoT network gateway providers that are paid by devices enabled within the scope of use. The main requirements for the mesh network of these devices are size, speed, and security. as well as delegated powers supported by digital identity.
Related words:No more pushing and pushing back: Digital ID solves the problem of privacy.
Today’s payment infrastructure cannot support the tens of billions of always-connected IoT devices. Infrastructure that connects data points, devices, and different stakeholders is key to success for a smart city’s motivation and overall integrity system. Distributed ledger technology promises to be the underlying network layer for many of these systems supporting financial services. supply chain Compatible identification systems In addition, the decentralized ownership of data ledgers and data storage at the core of smart cities makes fraud almost impossible. Because there is no central authority controlling access to the ledger.
First-generation distributed ledger technology, or DLT, cannot scale to meet these needs without compromising on security or decentralization, but next-generation DLTs are emerging that can meet the demands of high workloads. a lot without compromising on safety, therefore, the reliability of is necessary
If we consider that smart cities need a new kind of financial “plumbing” that supports all their services and is likely based on a distributed ledger. We have to consider the type of cryptocurrency they will use as public DLT, traditional token economy or cryptocurrencies is written about And it may be the case that some smart cities have their own CityCoin currency, but we might have to consider a new type of currency: machine money.
In Germany, financial regulators are openly discussing the creation of a special currency to support their “Industry 4.0” initiative, which is machine money in the euro-denominated digital cash. but optimized for the ultra-fast transactions required by the device. This doesn’t require the sophistication of the “wholesale” CBDCs offered to national financial institutions, or the completely offline requirement of using a “retail” CBDC wallet, the digital cash equivalent. smart city This “machine money” is less complicated. This is because the transaction will be a more straightforward tokenized central bank transfer. and may only intermittently connect to financial institutions. The architecture for these must be robust against cyber attacks. network failure and equipment malfunction but may require less regulatory intervention.
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DLT-based infrastructure will be a whole new ‘smart’ city finance channel.
These may seem like futuristic ideas. But smart cities are already being planned, designed and implemented around the world. And they all need to consider sustainability and ESG factors in their design as global populations grow and as we try to correct and adapt to climate change. food security The transformation of renewable energy and financial consolidation Technology will dominate the planning and development of our cities.
From Dubai, Beijing and Singapore, and upgrading existing urban centers to large new cities in Africa. We are likely to see rewards-based incentives using micropayments to motivate and guide civic behavior in order to balance optimal performance and measurable sustainability. this Fast and secure DLT-based financial infrastructure is deployed, such as pipes, cables, and other utilities’ fiber optics. Make micropayment flow the lifeblood of all new commercial and urban behavior.
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Rob Allen An entrepreneur residing in Electronic Funds Transfer at Point of Sale (EFTPOS), Australia, Rob has been involved in a number of DLT projects, serving as a Governing Council Member of Hedera Hashgraph and Director at DLT Supply Company Datahash. Shane Rob is also the CEO and founder of Nodl, a consultancy focused on implementing sustainable development of blockchain technology. Increase the expertise he has in this sector.