Smart cities: How blockchain and AI are changing urban living
Global urban populations have left most cities around the world struggling to provide those with some of the most basic services: transportation, waste, and energy. The urban population is projected to rise above 80% in the European Union by the year 2050, and unless innovative solutions come about, many standards will degrade. According to Statista, by the year 2050, 7 out of 10 people will be inhabiting urban areas globally. In the United States alone, the number of people projected to reside in urban areas are estimated at 89% by 2050. Technologies that are poised to play a leading role in improving urban management for sustainable smart city projects building long-term resilience include Artificial Intelligence (AI) and blockchain.
A look at some urban challenges
Traffic Congestion
Traffic congestion is among the burdens that contribute extra strain to urban areas. The related economic cost in EU member states has hovered at about 110 billion EUR annually. Real-time data analytics-driven insights can help city planners identify the knowledge they need to continuously improve routes so that congestion can be avoided and commuting time is minimized.
Air Pollution
With enhancement in air quality monitoring, pollution management still affects most cities. Growing urbanization typically comes at the expense of environmental sustainability and therefore public health crises among other issues. For instance, the UK alone stands to incur an air pollution cost of up to £18.6 billion in 2035. The adoption of new methods in pollution monitoring and control will be necessary in mitigating such effects.
Waste Management
Convenience-oriented urban lifestyles are going to plunge human civilization into a global waste crisis, with over 720 billion tons of waste produced every year. By and large, conventional waste management is based on an end-of-pipe approach rather than investigating the possibilities of recycling or resource conservation. AI-driven smart waste management systems can be installed for novel routes toward effective sustainability.
Energy Management
Traditional energy approaches are characterized by a centralized generation and long transmission involving energy losses of up to 6% in the United States. The European Comission estimates that 85% of the world's electricity is predicted to emanate from renewable sources by 2050, there is a room for deployment of more intelligent and decentralized solutions.
AI and blockchain integration for urban management
Intelligent Traffic Management
AI technologies are applied to problems of urban mobility. From collecting data from sensors, cameras, and traffic lights, the pattern can be analyzed using AI systems further for real-time optimization in flow. Smart contracts can further enable on-the-fly changes to traffic lights and auto-routing of vehicles for maximum efficiency in transportation.
AI applications also form the backbone for reformation in public transport systems. Real-time navigation apps help citizens navigate through congested areas with ease. Further, these applications can alert drivers about hazardous road conditions to help travel safer.
Sustainable Energy Solutions
AI and blockchain work together to revolutionize the management of energy within cities. Blockchain makes peer-to-peer energy trading a reality, wherein residents with solar panels can sell excess energy back to the grid. It allows for smart contracts that automatically validate production, calculate the amount payable in return, and make the monetary transfer possible. Such forms of decentralized systems democratize not just energy usage but also community-wide participation and investment in renewable energy sources.
Waste Management Efficiency
Intelligent waste management systems leverage AI and blockchain to increase recycling rates and decrease the level of waste. Sensors with AI capabilities installed in the bins could evaluate the type of waste and its fill level to optimize routes and collection schedules. Embedding blockchain solutions will also allow cities to provide incentives for proper waste management by citizens through smart contracts that will later reward such behavior.
Data Security and Urban Governance
In this respect, blockchain leads the pack for better governance due to its enhanced transparency and security. It allows for a secure space for sharing data, thereby availing the integrity of public records, permits, and services to the city administrations. Automation of bits and pieces of governance is possible through smart contracts; this would speed up such processes as permitting for construction, while AI can achieve streamlining administrative tasks through predictive maintenance models.
Citizen Engagement
Both AI and blockchain go a long way in ensuring effective citizen engagement. Blockchain technology provides secure voting systems, public consultations, and surveys that guarantee anonymity and integrity. AI-powered chatbots also enable smooth and quick communication between citizens and government agencies by enhancing the overall interaction.
Inclusivity and participation are thus the hallmarks of smart cities with these innovations. Indeed, with increased access to information and more efficient procedures, the role of the citizen shifts from mere passive recipient to active participant in city services.
Environmental Management
AI technology can also be applied to provide responses with only a fair level of environmental monitoring in air quality control, management of water resources, and greening of the urban area. Application of AI analytics combined with verification through blockchain for the collection of environmental data enables cities to maintain strict standards for sustainability.
For instance, real-time air quality monitoring, when augmented by data on urban activity, can provide insights for city planners regarding the efficiency of their environmental policy decisions that have never been possible before. AI is helpful in keeping track of and managing urban green spaces so that cities stay sustainable and in ecological balance.
How Fetch.ai, a Cambridge based startup is harnessing the power of AI and blockchain
Fetch.ai is addressing a very important challenge of the near future: the demand for charging stations with ever-growing popularity of electric vehicles. Because their innovative technology allows an easier navigation to locate and avail stations, the convenience factor is what benefits users. At the heart of that solution lies the smart agent: just like the digital assistant in your car, when your battery is running low, it automatically detects charging stations along your route and even can book a place for you to ensure there is no wait at at the nearest charging station. These smart agents will go further and optimize that stop for you by recommending charging stations near particular services like a coffee shop or playground- o make your wait time less of a hassle.
The technology developed by Fetch.ai is such that, on the energy management side, these agents can communicate with energy suppliers to establish the lower cost of charging and further optimize the supply of electricity without overloading the grid when demand peaks. Moreover, the system also incentivizes renewable energy sources, like solar or wind power, by orchestrating charges at times when green energy is in abundance. Overall, Fetch.ai is making electric vehicle charging convenient and fun while ensuring the reliable supply of electricity and sustainability best practices. To learn more about AI agents, check out one of our older articles on the subject matter.
Conclusion
Uniting the collaborative potential of AI and blockchain technologies brings thoughtful answers to many grappling with questions that afflict modern cities: streamlining urban management, optimizing energy consumption, providing sustainable waste practices, and better civic engagement.
Although challenges persist regarding data privacy and public acceptance, a more efficient, more transparent, and more sustainable urban future is at hand given that the regulatory compliance with local directives like MiCA are met. Moreover AI and blockchain form part of an overall approach to creating robust smart cities. Placing the focus on the juncture of governance, technology, and public needs, smart cities can pave the road toward a cleaner, smarter, and more inclusive urban environment.
