Could blockchain be the operating system of the cities of the future?

Servers, of the sort which you might need for blockchain, maybe. Look this is quite hard to illustrate, okay? Image: Getty.

Many trends on the horizon offer opportunities that could transform our cities. From self-driving vehicles and the sharing economy through to cloud computing and blockchain technologies, each of these trends is quite significant on its own. But the convergence of their disruptive forces is what will create real value and drive innovations.

Take blockchain and the sharing economy as an example. Bringing these two forces together can potentially disrupt established companies like Uber and Airbnb. The success of these companies is largely due to their ability to make use of existing assets people owned, that had been paid for, but from which new value could be derived.

Effectively, these companies set up digital platforms that harnessed “excess capacity” and relied on other people to deliver the services.

The same applies to other so-called “sharing economy” companies that merely act as service aggregators and collect a cut off the top. In the process, they gather valuable data for further commercial gain.

But can this business model be challenged and enhanced for the benefit of those who are delivering the service and creating the real value? Can technology be used to bypass the third party and allow direct peer-to-peer collaboration within a distributed governance structure? What could a “peer-owned” and “peer-run” marketplace look like?

Blockchain technology could just be the answer.

What is different about blockchain?

You can think of blockchain as the second generation of the internet – a transformation from an internet of information to an internet of value.

Blockchain allows suppliers and consumers – even competitors – to share a decentralised digital ledger across a network of computers without the need for a central authority.

The assets that can be described on the blockchain can be financial, legal, physical or electronic. No single party has the power to tamper with the records – sophisticated algorithms keep everyone honest by ensuring data integrity and authentication of transactions.

Image: Zenobia Ahmed/The Conversation.

But the impacts of blockchain go well beyond financial services and transactions. Its real value is in establishing trust-based interactions and accelerating the transfer of governance from centralised institutions to distributed networks of peer-to-peer collaboration.

The impact can be profound: a centralised institution acting as intermediatory in a transaction of value is now at risk of being disrupted because the same service can be provided on the blockchain through peer-to-peer interaction.

Blockchain gives service providers a means to collaborate and derive a greater share of the value for themselves. Smart agents on a blockchain could do just about everything provided by a service aggregator.

The technology’s trust protocol allows autonomous associations to be formed and controlled by the same people who are creating the value. All revenues for services, minus overheads, would go to members, who also control the platform and make decisions. Trust is not established by third parties, but rather through an encrypted consensus enabled by smart coding.

The transformation has already begun

We already have examples of this technology in action.

Arcade City, a global community of peer-to-peer services, is planning to offer a ride-sharing service on the blockchain. To catch a ride, the user buys digital currency (known as tokens), creates an offer and commits funds for the ride. A driver claims the offer, matches the funds to signal their commitment to provide the service, and picks up the passenger. The blockchain releases the funds as soon as the user acknowledges completing the ride.

Arcade City has a city council, which will overlook the system for three years until it is fully decentralised and up and running.

The same concept of using distributed public record technology can be applied to a wide range of urban applications.

For example, an energy startup in Perth is looking to trial a peer-to-peer technology solution that would allow consumers to offer excess energy, available through their solar panels, on the blockchain. Clever code matches the suppliers with consumers without the need to go through the energy provider.


Still more questions than answers

The blockchain technology and ecosystem around it are evolving rapidly, and are probably raising more questions than answers. How do we establish a system of transparent governance to ensure the longevity of the blockchain? What about security, speed, cost and, more importantly, regulations?

As with other disruptive technologies, there will be winners and losers. If the technology is successfully managed for scalable growth, it could very well disrupt established norms and transform our societies. Large layers of data generated by consumers today, which are controlled by hubs, can become public. In a world driven by blockchain, consumers can monetise their own data to derive greater value.

By knowing when and how to take advantage of this technology, we have an opportunity to transform the digital platforms for tomorrow’s cities. The blockchain becomes the city’s operating system, invisible yet ubiquitous, improving citizens’ access to services, goods and economic opportunities.

Today, the technology is yet to mature. It remains to be seen if the expectations can live up to reality.

But, in many ways, this is quite reminiscent of the internet in the mid-1990s. Not many people would have predicted its significance back then. Had we understood the impacts of the internet 20 years ago, what could we have done differently to create more value?

That is where we stand today with blockchain. The power of this transformation will become more compelling as the hype settles down and we begin to unleash the possibilities.The Conversation

Hussein Dia is an associate professor at Swinburne University of Technology.

This article was originally published on The Conversation. Read the original article.

 
 
 
 

Which pairs of capital cities are the closest together?

Vienna, which is quite close to Bratislava, but not quite close enough. Image: Thomas Ledl

It doesn't take long to get from Paris to Brussels. An hour and a half on a comfortable Thalys train will get you there. 

Which raises an intriguing question, if you like that sort of thing: wich capital cities of neighbouring countries are the closest together? And which are the furthest away? 

There are some that one might think would be quite close, which are actually much further part. 

Buenos Aires, Argentina's capital, sits on one side of the estuary of the Río de la Plata, while Montevideo, Uruguay's capital lies on the other side. 

Click to expand: Image: Google Maps

But at 207km apart, they're not really that close at all. 

Similarly, Singapore – capital of, er, Singapore – always sticks in the mind as 'that bit on the end of the Malaysian sticky-out bit'. But it's actually pretty far away from Kuala Lumpur, Malaysia's capital. A whole 319km away, in fact:

Click to expand: Image: Google Maps

Thinking of 'countries that cause problems by being close together', you inevitably think of South Korea and North Korea. 

Click to expand: Image: Google Maps

And while Pyongyang in the North and Seoul in the South are pretty close together, 181km just isn't going to cut it. 

Time to do some Seoul-searching to find the real answer here.

(Sorry.)

(Okay, not that sorry.)

Another place where countries being close together tends to cause problems is the Middle East. Damascus, the capital of Syria, really isn't that far from Beirut, in Lebanon. Just 76km:

Click to expand: Image: Google Maps

Seeing as Lebanon is currently host to millions of refugees fleeing the horrors of Syria's never-ending civil war and the atrocities of Daesh, or Isis, this is presumably something that authorities in Beirut have given a certain amount of thought to.

Most of the time, finding nearby capitals is a game of searching out which bits of the world have lots of small countries, and then rooting around. So you'd think Central America would be ripe for close-together capital fun. 

And yet the best option is Guatemala and El Salvador – where the imaginatively named Guatemala City is a whole 179km away from the also imaginatively named San Salvador.  

Click to expand: Image: Google Maps

Another obvious place with lots of small-ish countries is Europe – the site of the pair of capitals that drove me to write this nonsense in the first place. 

Click to expand: Image: Google Maps

And in fairness, Vienna and Bratislava do make a pretty good showing of it. Austria's capital sits on the Danube; drift downstream, and you swiftly get to Slovakia's capital. As the crow flies, it's 56km – though as the man swims, it's a little longer. 

There are more surprising entries – particularly if you're willing to bend the rules a little bit. Bahrain and Qatar aren't really adjacent in the traditional sense, as they have no land border, but let's just go with it. 

Click to expand: Image: Google Maps

Manama, Bahrain's capital, is 140km away from Doha, the centre of the world's thriving local connecting-flight-industry which moonlights as Qatar's capital. 

Sticking with the maritime theme, Port of Spain in Trinidad and Tobago is 152km from St George's, Grenada. 

Click to expand: Image: Google Maps

Good, but not good enough. 

Castries, the capital of the Carribbean country of St Lucia, is 102km north of Kingstown, the capital of St Vincent and the Grenadines. 

Click to expand: Image: Google Maps

Better, but still not good enough. 

Basseterre, the capital of St Kitts and Nevis, inches ahead at 100km away from St John's, the capital of Antigua and Barbuda.

Click to expand: Image: Google Maps

But, enough teasing: it's time to get down to the big beasts.

If you ask Google Maps to tell you the distance between the capital of Congo and the Democratic Republic of the Congo, it comes up with a rather suspect 20km. 

 

Click to expand: Image: Google Maps

A short distance, but considering the only thing separating the two is the River Congo, something's up: Google places the centre of Brazzaville a little north of where it should be, and the centre of Kinshasa many many miles south of where it should be, in some sort of suburb.


So, in true CityMetric style, we turn to train stations. 

Though such transport hubs may not always perfectly mark the centre of a city – just ask London Oxford Airport or London Paddington – in this case it seems about right. 

Kinshasa's main train station is helpfully called 'Gare Centrale', and is almost slap-bang in the middle of the area Google marks as 'Centre Ville'. On the other side of the river, 'Gare de Brazzaville' is in the middle of lots of densely-packed buildings, and is right next to a Basilica, which is always a good sign. 

 

Click to expand: Image: Google Maps

And when marking that distance, you get a more realistic 4.8km. If you want to be really keen, the ferry between them travels 3.99km, and the closest point I could find between actual buildings was 1.74km, though admittedly that's in a more suburban area. 

Pretty close, though. 

But! I can hear the inevitable cries clamouring for an end to this. So, time to give the people what they want. 

Click to expand: Image: Google Maps

If you ask Google Maps to tell you how far away the Holy See, capital of the Vatican, is from Rome, capital of Rome, it says 3.5km. 

Click to expand: Image: Google Maps

If you set the centre of Rome to be the Palatine Hill, the ancient marking point for roads leading out of Rome, that narrows to 2.6km.

 

Click to expand: Image: Google Maps

Fiddle a bit and put the centre of the Vatican as, well, the middle bit of the roughly-circular Vatican, that opens up a smidge to 2.75km.

Click to expand: Image: Google Maps

Mark the centre of point of the Vatican as the approximate location of St Peter's Tomb within St Peter's Basilica, which is after all the main reason the Vatican is a thing and not just a quirky suburb of Rome, and 2.67km is your answer. 

Though obviously in practice Rome and the Vatican are as far away as one single step over the railings at the entrance of St Peter's Square, which fairly blatantly makes them the closest capital cities in the world. 

But that would have been a very boring thing to come out and say at the start. 

Oh, and if you hadn't worked it out already, the longest distance between a capital city and the capital of a country it shares a land border with is 6,395km. 

Click to expand: Image: Google Maps

I know it's tough for you, Vladimir and Kim. Long-distance relationships are a real struggle sometimes.

I can't make a pun work on either Moscow or Pyongyang here, but readers' submissions more than welcome. 

Jack May is a regular contributor to CityMetric and tweets as @JackO_May.

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