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.

 
 
 
 

The Delhi Metro: How do you build a transport system for 26m people?

Indraprastha station in 2006. Image: Getty.

“Thou hath not played rugby until thou hath tried to get onto a Delhi Metro in rush hour,” a wise Yogi once said.

If you’ve never been on New Delhi’s Metro, your mind might conjure up the the conventional image of Indian trains: tawdry carriages, buckets of sweat, people hanging out of windows and the odd holy cow wandering around for good measure.

Well, no. The Delhi Metro is actually one of the most marvellously sophisticated, affordable, timely, and practical public transportation systems out there. On a 45C day in the Indian summer, many a traveller has shed tears of joy on entering the spacious, air-conditioned carriages.

Above ground, Delhi is a sprawling metropolis of the scariest kind: 26m people, three times the population of London, churn and grind through Delhi itself.

The National Capital Region, an area which includes Delhi and its surrounding satellite cities – now victim of its never-ending urban sprawl – has an estimated population of almost 50m. So how do you tie such a huge population together?

The map; click to expand. Image: Delhi Metro Rail.

Motorised vehicles won’t do it alone. For one, air pollution is a horrific problem in Delhi, as it is across India. Last November, the government declared a state of emergency when the Indian capital was engulfed by a toxic, choking fog so thick that you could barely see several metres in front of you, drawing allusions to the great Victorian fogs in London.

Then there’s Delhi’s famous traffic. Twenty-five years ago, the travel writer William Dalrymple observed that you could reduce the Delhi’s road laws to one simple idea: the largest vehicle always had the right of way. The traffic has tamed somewhat in the 21st century, but the number of vehicles has multiplied again and again, and it’s not uncommon for people to be stuck in four-hour traffic jams when they try to traverse the mighty city.

Enter the Delhi Metro – a huge network of 164 over- and underground stations – and by any account, a titan of civil engineering and administration.

The numbers are simply colossal. Every day the metro serves on average almost 3m people. Annually, it carries around 1bn.

In a country where intercity trains still turn up a day late, the Delhi Metro is extraordinarily timely. On the major lines, trains will come every several minutes. The trains are extraordinary speedy, and you’ll reach your destination in a fraction of the time it would take for you to drive the distance.

The minimum fare is 10 rupees (12p); the maximum fare, to and from the airport, is 50 (60p).

The evolution of the metro. Image: Terramorphus/Wikimedia Commons.

Construction of the metro system began in 1998, with the first section completed in late 2002. Keen to avoid the catastrophic corruption and bureaucratic mismanagement which plagued eastern city of the Kolkata Metro, developers took advice from Hong Kong’s high-tech system There have been several stages of development to add extra lines; more is planned. By 2020, it is hoped that the 135 miles of line will have increased to over 300.  

One thing quite striking about the metro is its women’s only carriages at the rear and the front of the train, marked by pink signs. Sexual assault and harassment has been a horrific problem on Delhi’s transport systems. Women can of course go anywhere on the train – but men who violate the carriage system will have to deal with the scathing anger of the entire pink carriage.


One of the under-discussed impacts of widespread and well-used public transportation systems is their propensity to break down social and class barriers over time. As the London Tube began to be used more and more in early 20th century London, people from completely different walks of life and classes began to brush shoulders and share the same air.

The story is similar in Delhi. The necessity of the metro helps to break down old caste and class divisions. Of course, many elite Delhiites would not be seen dead on the metro, and choose their private chauffeur over brushing shoulders with the common man. But slowly and surely, the times are a changing.

What’s more, the Delhi Metro system is one of the greenest around. Six years ago, the Metro was the first railway system in the world to be awarded carbon credits from the United Nations for helping to reduce pollution in the capital by an estimated 640,000 tonnes every year.  

All praises sung and said, however, at peak times it’s less mind the gap and more mind your ribs – as a fifth of humanity seems to try to get on and off the train at once.

Want more of this stuff? Follow CityMetric on Twitter or Facebook