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.

 
 
 
 

This app connects strangers in two cities across the world. But can it tackle urban loneliness?

New Delhi, in India, where many of Duet-App's users come from. Image: Ville Miettinen

“You can be lonely anywhere, but there is a particular flavour to the loneliness that comes from living in a city, surrounded by millions of people”. Olivia Laing, The Lonely City

Our relationship to where we live and the spaces we inhabit define who we are and how we feel. But how often do we articulate the emotional impact of this relationship, whether this be loneliness, frustration or even civic pride?

“When I moved to a new city, started living alone, wanted to drink less, stay indoors more, and when I realised that I cannot make any more best friends.”

A new social network, a simple app that connects two individuals from the UK and India, aims to counter some of these issues.  Over the course of a year connected pairs receive one question a day through the app and their responses are exchanged with each other. A simple interaction that gradually builds a series of one-on-one relationships and invites users to imagine, over time, the other person living their life.

Distant geographies are an implicit part of the experience, therefore many of the questions nudge users to explore correlations between their physical and emotional landscapes. The data shows us that many of the Duet-App users are located in populous urban cities like Delhi, Bangalore, Manchester, Leeds and London, places that can just as often discourage feelings of belonging and place-making as much as they foster them.

“I had thought I'd never be able to live here again. but here I am living again at home after almost a decade living elsewhere. Living in Mumbai is a contact sport, and I can't do without it's chaos and infectious energy.”

Mumbai, India. Image: Deepak Gupta

In general cities are getting bigger and spreading wider at the same time as our communications are increasingly being conducted online and via digital gateways.

There is a sense that much of our online personas project an idealised version of ourselves; we increasingly document and express our daily lives through a filter and we are not always comfortable with a spontaneous expression of ourselves. Duet-App seeks to foster alternative digital relationships that through their anonymity allow us to be more honest and free.

“I feel a lot of people assume that I always have a lot going on for me and everything's always happy and amazing. I wish they could appreciate... how much of my own anxiety I swim in every single day. I appear and behave “normal” on the outside, calm and composed but there are always storms going on in my head.”

In exploring the responses to the questions so far, those that often garner the most replies relate directly to how we feel about our personal position in the world around us. Often these questions act as provocations not only to share responses but to reflect and articulate our thoughts around how we feel about what we are doing in the here and now.

Manchester, another popular city for Duet-App users. Image: Julius 

“Sometimes I feel sad about it [getting old] because I saw how easy it would be to feel lonely, and the fact that the world is set up for able-bodied young people is a bit of a travesty.”

Although many social media platforms allow for distant engagement and access into the lives of others we are in the main still curating and choosing our friendship circles. Through Duet-App this is randomised (and anonymised) with the intention of bypassing the traditional mechanics of how we broker online relationships. While directly exploring the digital space as a place for intimacy.


“Where do you go for peace?

“Well the internet, really. I do some mindless browsing, peek into the fandoms, listen to a few songs. Calms me down.”

Snapshots into the lives of someone existing and playing out their lives remotely can highlight shared concerns that break down preconceptions of how life is lived by others. Prompted by the reflections of a stranger exposed to our lives, digital relationships can encourage us to address the physical space we inhabit and the effects that the cities we live out our lives in have on our own well being. 

Catherine Baxendale is director of Invisible Flock.

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