This thesis addresses the research question of what impact the use of blockchain technology has on improving sustainability in a smart city. For this purpose, first an insight into the emergence of blockchain technology, as well as its structure, characteristics and various consensus mechanisms is given. This is followed by insights into the different types of blockchain and the advantages and disadvantages of blockchain technology in order to create as comprehensive an understanding as possible.
Due to the continuous progress of urbanization and the associated environmental pollution and destruction, it is becoming increasingly important to find innovative solutions to these problems.
The United Nation's 17 Sustainable Development Goals (SDG) offer countries and cities a basis for improving their sustainability. SDG 11 addresses the development of sustainable smart cities and communities. Smart cities use innovative technologies that are interconnected with each other across all areas of a city to drive sustainable and resource-saving urban development and provide citizens with a high quality of life. These technologies use sensors and other devices to collect data from their immediate environment, which is then analyzed to identify problems in their early stages and make improvements. However, the large amount of sensitive and personal data also increases the risk of security vulnerabilities. One of these technologies that could help improve sustainability in smart cities and also reduce risks is blockchain technology.
Table of Contents
1 Introduction
2 Blockchain Technology
2.1 What is a Blockchain?
2.1.1 Structure
2.1.2 Consensus mechanisms
2.1.3 Characteristics
2.2 Types of Blockchains
2.2.1 Public Blockchain
2.2.2 Private Blockchain
2.2.3 Consortium Blockchain
2.2.4 Hybrid Blockchain
2.3 Benefits
2.4 Challenges
2.4.1 Technical Challenges
2.4.2 Legal Issues
2.4.3 Security Vulnerabilities and Threats
2.5 Brief overview on the use cases of a blockchain
3 Smart City Concept
3.1 What are smart cities?
3.2 Challenges of the Smart City Concept
3.2.1 Technical Risks
3.2.2 Technical risks related to Blockchain
3.2.3 Non-technical Challenges
3.3 Sustainability in Smart Cities
4 Research Method
5 Findings
5.1 Sustainable Development Goals
5.2 Smart Environment
5.2.1 Waste, Water and Air Management
5.2.2 Smart Energy
5.3 Smart Living
5.3.1 Smart Home
5.3.2 Smart Health
5.4 Smart Governance
5.5 Smart Economy
5.5.1 Sharing Economies
5.5.2 Supply Chain Management
5.5.3 Agriculture and Aquaculture
5.6 Smart Mobility
5.7 Smart People
5.8 Smart Tourism
5.9 Challenges of blockchain use in Smart Cities
6 Real-life Use Cases
6.1 Brooklyn Microgrid
6.2 HOPU and PlanetWatch
6.3 Medicalchain
7 Discussion & Conclusion
Research Objectives & Topics
This thesis examines the research question regarding the impact of blockchain technology on improving sustainability in smart cities. It explores the theoretical intersections between decentralization, data security, and urban management to determine how blockchain-based applications can facilitate sustainable development goals in various urban dimensions.
- Theoretical foundations of blockchain technology and consensus mechanisms.
- Analysis of the smart city concept and its core sustainability challenges.
- Integration of blockchain technology within Smart Environment and Smart Governance dimensions.
- Evaluation of real-world use cases (e.g., Brooklyn Microgrid, Medicalchain).
- Linking blockchain capabilities to the United Nation's Sustainable Development Goals (SDGs).
Excerpt from the Book
2.1.1 Structure
After the emergence of BCT and its differences to DLT have been discussed, we will now take a closer look at how exactly a blockchain and its underlying technologies work.
A blockchain is a, P2P-Network based chain, which consists of individual blocks chained together by hash functions (Mittal, 2021, pp. 2–3). It also uses a distributed ledger to ensure the safety of its data by distributing a copy of the current blockchain to every user on the network (Meinel & Gayvoronskaya, 2020, p. 11). To further strengthen the security of the data, the blockchain uses consensus mechanisms and hash values (Chowdhary, 2020, p. 92; Panda et al., 2021, p. 261).
Consensus mechanisms help users of a blockchain network decide whether to validate a block and add it to the chain or not. The decentralized consensus mechanism replaces the need for a trusted third party to confirm the integrity of transactions (Panda et al., 2021, pp. 6 & 83).
There are many different consensus mechanisms, such as PoW or Proof-of-Stake (PoS), which will be introduced in more detail in chapter 2.1.2.
Hash values are large amounts of data that have been converted by hash functions into a hash value, with which blocks, and the data stored in it can be identified. Each hash value is as unique as a human fingerprint and cannot be changed (Meinel & Gayvoronskaya, 2020, pp. 19–20). Any change to the stored data results in a new hash value being created.
Summary of Chapters
1 Introduction: Provides an overview of urbanization trends, the resulting environmental pressures, and the potential role of blockchain technology in enhancing smart city sustainability.
2 Blockchain Technology: Explains the origins, technical structure, consensus mechanisms, and key characteristics like decentralization and immutability of blockchain technology.
3 Smart City Concept: Defines smart cities, their core dimensions, and the various technical and non-technical challenges they face in achieving sustainable development.
4 Research Method: Outlines the systematic literature review process used to identify relevant academic sources regarding blockchain applications in urban contexts.
5 Findings: Details the practical applications of blockchain across dimensions like smart environment, government, and mobility, while linking them to global sustainability goals.
6 Real-life Use Cases: Presents practical examples like the Brooklyn Microgrid and Medicalchain to demonstrate the tangible impact of blockchain technology in real-world scenarios.
7 Discussion & Conclusion: Summarizes the findings, confirms the positive impact of blockchain on smart city sustainability, and suggests directions for future research.
Keywords
Blockchain Technology, Smart City, Sustainability, Sustainable Development Goals, SDG 11, Consensus Mechanisms, Decentralization, Smart Governance, Smart Environment, Smart Mobility, Smart Living, Supply Chain Management, Digital Identity, Data Security, Distributed Ledger Technology
Frequently Asked Questions
What is the core focus of this thesis?
The thesis investigates the impact of blockchain technology on the sustainability and development of smart cities.
What are the primary thematic areas explored?
The study centers on six smart city dimensions including Smart Environment, Smart Living, Smart Governance, Smart Economy, Smart Mobility, and Smart People.
What is the research goal of this work?
The goal is to answer the question of how blockchain applications can influence the sustainability of smart cities based on an extensive literature analysis.
Which scientific methodology is applied?
The author conducted a systematic literature review, screening scientific databases to select and analyze current research on the integration of blockchain in urban areas.
What topics does the main part cover?
The main part covers the technical foundations of blockchain, the conceptual framework of smart cities, and specific findings on how to use blockchain to meet Sustainable Development Goals (SDGs).
Which keywords define this work?
Key terms include Blockchain Technology, Smart City, Sustainability, SDG, Decentralization, and Data Security.
How is blockchain used in the energy sector?
Blockchain enables virtual marketplaces where producers can sell surplus energy directly to consumers, reducing waste and increasing process traceability.
What specific help does blockchain offer in healthcare?
It provides a secure, interoperable platform for patient data exchange, prevents the distribution of counterfeit medication, and allows patients to manage their own medical records.
- Quote paper
- Anonym (Author), 2022, Green Blockchain and Improvement of Sustainability in Smart Cities, Munich, GRIN Verlag, https://www.grin.com/document/1340009
