IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v16y2023i9p393-d1231726.html
   My bibliography  Save this article

Blockchain in the Smart City and Its Financial Sustainability from a Stakeholder’s Perspective

Author

Listed:
  • Hossein Hassani

    (Research Institute of Energy Management and Planning, University of Tehran, Tehran 1417466191, Iran)

  • Kujtim Avdiu

    (Department of Statistics, Nationalbank Austria, Otto-Wagner-Platz 3, 1090 Vienna, Austria)

  • Stephan Unger

    (Department of Economics and Business, Saint Anselm College, 100 Saint Anselm Drive, Manchester, NH 03102, USA)

  • Maedeh Taj Mazinani

    (Department of Management, University of Tehran, Tehran 1417466191, Iran)

Abstract

In this paper, we take a city’s budget, which represents the resources that need to be allocated, and test how many blockchain users need to join a voting process of how the city’s resources should be allocated in order to best represent their preferences. This voting process can be tracked very well through the utilization of IoT and smart technology in a smart city. Therefore, we showed that the budget resource allocation of a smart city can be significantly optimized through the utilization of blockchain technology. We found that just a tiny fraction of 0.12% of the population of blockchain participants is needed to significantly represent the spending behavior of the total population. This has significant implications as it shows the strength and importance of a required blockchain in a smart city and its minimal energy consumption requirements.

Suggested Citation

  • Hossein Hassani & Kujtim Avdiu & Stephan Unger & Maedeh Taj Mazinani, 2023. "Blockchain in the Smart City and Its Financial Sustainability from a Stakeholder’s Perspective," JRFM, MDPI, vol. 16(9), pages 1-21, September.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:9:p:393-:d:1231726
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/16/9/393/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/16/9/393/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Li, Jingming & Li, Nianping & Peng, Jinqing & Cui, Haijiao & Wu, Zhibin, 2019. "Energy consumption of cryptocurrency mining: A study of electricity consumption in mining cryptocurrencies," Energy, Elsevier, vol. 168(C), pages 160-168.
    2. Igor Calzada & Cristobal Cobo, 2015. "Unplugging: Deconstructing the Smart City," Journal of Urban Technology, Taylor & Francis Journals, vol. 22(1), pages 23-43, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin William Cong & Zhiguo He & Jiasun Li & Wei Jiang, 2021. "Decentralized Mining in Centralized Pools [Concentrating on the fall of the labor share]," The Review of Financial Studies, Society for Financial Studies, vol. 34(3), pages 1191-1235.
    2. Ernest Barceló & Katarina Dimić-Mišić & Monir Imani & Vesna Spasojević Brkić & Michael Hummel & Patrick Gane, 2023. "Regulatory Paradigm and Challenge for Blockchain Integration of Decentralized Systems: Example—Renewable Energy Grids," Sustainability, MDPI, vol. 15(3), pages 1-27, January.
    3. Michael L. Polemis & Mike G. Tsionas, 2023. "The environmental consequences of blockchain technology: A Bayesian quantile cointegration analysis for Bitcoin," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1602-1621, April.
    4. Ahl, A. & Yarime, M. & Goto, M. & Chopra, Shauhrat S. & Kumar, Nallapaneni Manoj. & Tanaka, K. & Sagawa, D., 2020. "Exploring blockchain for the energy transition: Opportunities and challenges based on a case study in Japan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    5. Bipashyee Ghosh & Saurabh Arora, 2022. "Smart as (un)democratic? The making of a smart city imaginary in Kolkata, India," Environment and Planning C, , vol. 40(1), pages 318-339, February.
    6. Chiara Certomà, 2020. "Digital Social Innovation and Urban Space: A Critical Geography Agenda," Urban Planning, Cogitatio Press, vol. 5(4), pages 8-19.
    7. Trencher, Gregory, 2019. "Towards the smart city 2.0: Empirical evidence of using smartness as a tool for tackling social challenges," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 117-128.
    8. Lim Seng BOON & Jalaluddin Abdul MALEK & Mohd Yusof HUSSAIN & Zurinah TAHIR, 2020. "Understanding the trends and characteristics of smart urbanism across continents," Smart Cities and Regional Development (SCRD) Journal, Smart-EDU Hub, Faculty of Public Administration, National University of Political Studies & Public Administration, vol. 4(1), pages 23-35, March.
    9. Jin Woo Jung & Md. Mainul Islam & Hoh Peter In, 2024. "Proof of Work with Random Selection (PoWR): An Energy Saving Consensus Algorithm with Proof of Work and the Random Selection Function," Sustainability, MDPI, vol. 16(21), pages 1-27, October.
    10. Ali Khosravi & Fanni Säämäki, 2023. "Beyond Bitcoin: Evaluating Energy Consumption and Environmental Impact across Cryptocurrency Projects," Energies, MDPI, vol. 16(18), pages 1-23, September.
    11. Ghabri, Yosra & Ben Rhouma, Oussama & Gana, Marjène & Guesmi, Khaled & Benkraiem, Ramzi, 2022. "Information transmission among energy markets, cryptocurrencies, and stablecoins under pandemic conditions," International Review of Financial Analysis, Elsevier, vol. 82(C).
    12. Kazeem Abimbola Sanusi & Zandri Dickason-Koekemoer, 2022. "Cryptocurrency Returns, Cybercrime and Stock Market Volatility: GAS and Regime Switching Approaches," International Journal of Economics and Financial Issues, Econjournals, vol. 12(6), pages 52-64, November.
    13. Tianyi Li & Xiaoquan (Michael) Zhang, 2024. "Development Trajectory of Blockchain Platforms: The Role of Multirole," Information Systems Research, INFORMS, vol. 35(3), pages 1296-1323, September.
    14. Helder Miguel Correia Virtuoso Sebastião & Paulo José Osório Rupino Da Cunha & Pedro Manuel Cortesão Godinho, 2021. "Cryptocurrencies and blockchain. Overview and future perspectives," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 21(3), pages 305-342.
    15. Mingbo Zheng & Gen-Fu Feng & Xinxin Zhao & Chun-Ping Chang, 2023. "The transaction behavior of cryptocurrency and electricity consumption," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-18, December.
    16. Negar Noori & Thomas Hoppe & Martin de Jong, 2020. "Classifying Pathways for Smart City Development: Comparing Design, Governance and Implementation in Amsterdam, Barcelona, Dubai, and Abu Dhabi," Sustainability, MDPI, vol. 12(10), pages 1-24, May.
    17. Justyna Przywojska & Aldona Podgórniak-Krzykacz & Justyna Wiktorowicz, 2019. "Perceptions of Priority Policy Areas and Interventions for Urban Sustainability in Polish Municipalities: Can Polish Cities Become Smart, Inclusive and Green?," Sustainability, MDPI, vol. 11(14), pages 1-24, July.
    18. Raimundo Díaz-Díaz & Luis Muñoz & Daniel Pérez-González, 2017. "The Business Model Evaluation Tool for Smart Cities: Application to SmartSantander Use Cases," Energies, MDPI, vol. 10(3), pages 1-30, February.
    19. Yahya Algül & Deniz Erenel, 2024. "The Impact of R&D Expenditures on Regional Energy Intensity in Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 546-557, September.
    20. Oluwaseun Fadeyi & Ondrej Krejcar & Petra Maresova & Kamil Kuca & Peter Brida & Ali Selamat, 2019. "Opinions on Sustainability of Smart Cities in the Context of Energy Challenges Posed by Cryptocurrency Mining," Sustainability, MDPI, vol. 12(1), pages 1-20, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:16:y:2023:i:9:p:393-:d:1231726. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.