Smart cities are getting constant attention all over the world as they have become attractions for many jurisdictions. In these utopias, there is a very clear relationship between the population they are built for and the systems, networks, and devices that make them safe, reliable, and efficient. Most importantly, it will be built on an entirely new fintech infrastructure that supports the flow of micropayments for financial plumbing, just as other critical tools (water, energy, data, etc.) flow through pipes, cables and optical fibres. …
The main objective of a smart city is to improve city functions and promote economic growth through the use of advanced technology. Smart cities seek to improve operational efficiency, achieve sustainable development goals such as energy efficiency and management of scarce resources, and above all improve the lives of city residents.
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Some of the oldest and most promising smart cities include Singapore, Dubai and Oslo. In Singapore, one of the most populous cities in the world, sensors are used to digitally collect data on traffic and pedestrian activities. The data is then sent to analysis agencies to determine appropriate measures, both in terms of real-time energy redirection and policy improvement and planning. Other areas of focus include the use of smart home technologies to address issues such as waste management and energy efficiency.
Therefore, it is critical to collect data from connected devices accurately and reliably, and the best way to get people actively involved in delivering this data from their devices is to encourage them to do so. It is clear that there are some very basic concepts that also need to be implemented to ensure the security and well-being of citizens, such as digital identity, personal privacy and consent to data sharing, and this will be the topic of another article.
A smart city is accountable to its citizens for operating and reporting sustainable infrastructure, and for incorporating environmental, social and governance (ESG) considerations into design. The introduction of incentive schemes to reward positive behavior is likely to play an important role in addressing the major environmental, social, and economic problems facing residents of these cities. As cities move toward meeting the United Nations’ 2050 climate goals under the Paris Agreement, these incentive schemes may be critical to helping cities reduce emissions and achieve a carbon-neutral future.
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Although integrated service smart cities are still a few years away, the use of incentive systems based on the ability to transfer small amounts of value or small payments can accelerate the creation of smart cities. Simply put, micropayments are transactions in very small amounts, often fractions of cents, that occur in real time when a user or device actively interacts with a system or process. A good example is the spread of COVID-19 logging and tracing. We do not currently get rewards for entering public institutions, but perhaps if we did, we would meet higher requirements. Any smart city initiative that requires data collection to be processed by urban analytics systems that respond to behavioral shocks from society through rewards will benefit from payment infrastructure that supports micropayments. In effect, all residents and entities become “consumers of city data (producers and consumers)” and are rewarded in real time with small payments for their participation.
Smart cities need public support
Motivation is at the core of successful smart cities. Although people can generally advocate for technological advances to improve the quality of life, the misuse of personal data from “high-tech” central platforms has undoubtedly made the public reluctant in recent years to engage in technology-based information gathering.
In light of the COVID-19 pandemic, the number of data leaks is increasing exponentially. Confirmed data breaches in healthcare alone increased by 58% in 2020.