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.

 
 
 
 

Ottawa-Gatineau, the national capital which language differences nearly split into two countries

The Canadian parliament, Ottawa.

There are many single urban areas with multiple, competing local identities: from the rivalry of Newcastle and Sunderland in Tyne & Wear, to the Wolverhampton residents who resolutely deny that they are part of Birmingham, despite being in the same urban conurbation and sharing a mayor.

However, no division is quite as stark as that of the Ottawa-Gatineau metropolitan area in Canada. Often referred to as the National Capital Region, Ottawa and Gatineau lie directly opposite each other on either side of the Ottawa River, a hundred miles from Montreal, the nearest other significant population centre. Because the conurbation straddles a provincial boundary, the two cities literally speak a different language, with Ottawa in predominantly Anglophone Ontario and Gatineau in Francophone Quebec.

This is reflected in their populations. According to the 2011 census, French was the mother tongue of 77 per cent of those in Gatineau, a percentage maintained by policies intended to keep French as Quebec’s dominant language. Similarly, although Ottawa provides some bilingual services, 68 per cent of its residents are predominantly Anglophone; Franco-Ontarians frequently complain that the city is not officially bilingual.

Although there are similar divided cities, such as the Cypriot capital of Nicosia, Ottawa-Gatineau is unique in that the city was not divided by a war or major political event: its two halves have been part of the same political territory since the British defeated the French in the Battle of the Plains of Abraham in 1759, before either of the cities were even established. Indeed, the oldest part of Gatineau is actually an Anglophone settlement with the name of Hull (it was merged into the Gatineau municipality in 2002).


Today, the two cities facing each other across the Ottawa river have separate services, and elect difference mayors to run them: OC Transpo serves Ottawa, the Société de Transport de l’Outaouais (STO) serves  Gatineau, and few tickets are transferrable between the two systems.

OC Transpo is currently constructing a light rail system to many parts of Ottawa; but proposals to expand the route into Gatineau, or to merge the two transport systems have been fraught with obstacles. The City of Ottawa owns a disused railway bridge, connecting the two cities, but arguments about funding and political differences have so far prevented it from being used as part of the light rail extension project.

The divisions between Ottawa and Gatineau are made all the more unusual by the fact that Ottawa is the federal capital of Canada – a country where bilingualism is entrenched in the Charter of Rights & Freedom as a bedrock principle of the Canadian constitution. As a result, while all proceedings within the Canadian legislature are bilingual, this principle of bilingualism is not reflected on the streets surrounding the building.

The inevitable map. Image: Google.

These linguistic, as well as political, differences have been a long-running theme in Canadian politics. Quebec held independence referendums in both 1980 and 1995; in the latter, the separatists were defeated by a margin of less than 0.6 per cent. Quebecois independence would be made all the more humiliating for Canada by the fact it would be losing the Canadian Museum of History in Gatineau, while its parliament was forced to look out across the river at its new neighbours.

While Quebec as a whole only narrowly rejected independence in 1995, 72 per cent of Gatineau residents voted against the separatist proposal. The presence of many federal employees living in the city, who commute to Ottawa, meant that the city was rather unenthusiastic about the prospect of independence.

So, with Quebec nationalism currently at a low ebb, Gatineau seems set to remain a part of Canada – albeit while retaining its independent from the other half of its conurbation, across the river. While recent challenges such as flooding may have been better tackled by a unitary authority, the National Capital Region seems set to remain a tale of two cities.

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