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. Malfuzi, A. & Mehr, A.S. & Rosen, Marc A. & Alharthi, M. & Kurilova, A.A., 2020. "Economic viability of bitcoin mining using a renewable-based SOFC power system to supply the electrical power demand," Energy, Elsevier, vol. 203(C).
    2. Anatolyy Dzyuba & Irina Solovyeva & Dmitry Konopelko, 2023. "Managing Electricity Costs in Industrial Mining and Cryptocurrency Data Centers," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 76-90, July.
    3. 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.
    4. Devon McAslan & Farah Najar Arevalo & David A. King & Thaddeus R. Miller, 2021. "Pilot project purgatory? Assessing automated vehicle pilot projects in U.S. cities," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-16, December.
    5. Kummitha, Rama Krishna Reddy & Crutzen, Nathalie, 2019. "Smart cities and the citizen-driven internet of things: A qualitative inquiry into an emerging smart city," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 44-53.
    6. Johannes Stübinger & Lucas Schneider, 2020. "Understanding Smart City—A Data-Driven Literature Review," Sustainability, MDPI, vol. 12(20), pages 1-23, October.
    7. 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.
    8. Inessa Tyan & Mariemma I. Yagüe & Antonio Guevara-Plaza, 2020. "Blockchain Technology for Smart Tourism Destinations," Sustainability, MDPI, vol. 12(22), pages 1-11, November.
    9. 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.
    10. 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).
    11. 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.
    12. Chiara Certomà, 2020. "Digital Social Innovation and Urban Space: A Critical Geography Agenda," Urban Planning, Cogitatio Press, vol. 5(4), pages 8-19.
    13. Julsrud, Dr. Tom Erik & Krogstad, Dr. Julie Runde, 2020. "Is there enough trust for the smart city? exploring acceptance for use of mobile phone data in oslo and tallinn," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    14. Han, Dong & Zhang, Chengzhenghao & Ping, Jian & Yan, Zheng, 2020. "Smart contract architecture for decentralized energy trading and management based on blockchains," Energy, Elsevier, vol. 199(C).
    15. Solis, Miriam & Bashar, Samira Binte, 2022. "Social equity implications of advanced water metering infrastructure," Utilities Policy, Elsevier, vol. 79(C).
    16. 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.
    17. 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.
    18. 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.
    19. 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.
    20. Kuo-Shing Chen, 2024. "Investigating the Impact of Financial Reporting for Cryptocurrencies on Company Value," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 14(3), pages 1-6.

    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.