3 Ways that NFTs could be used in Smart Cities of the Future

Urban planning has never been so critical as smart cities re-imagine themselves after the shock of the pandemic. Many people believe that younger people have a natural tendancy to move to the big city lights after they finish college. However, a thought provoking 2022 report by Harvard's Ben Sprung-Keyser, Nathaniel Hendren and Sonya Porter found that 80% of young adults migrate less than 100 miles from were they grew up. One key takeaway from the study found that big changes in average wages doesn't lead to mass movement. This indicates that job opportunities in bigger cities are not a motivation for people to move into those cities. If movement of people benefits society and provides more opportunity for the general public the question becomes how to reduce barriers to mobility? An analysis of this report on Vox suggested developing a series of "place-based policies" which is an interesting idea. Furthermore, a city could add smart policy incentives that would encourage various forms of people movement and enrich the communities within cities. Cities are stretching beyond traditional boundaries and becoming more complex with new infrastructure, housing capacity issues and now a hybrid working model that is leaving many wondering where the future of work will end up down the road. A combination of emerging technology that is becoming smarter by the day is offering unique ways for public services to interact with urban environments. Everything from energy consumption to transportation management is being transformed as we tackle urban problems with innovative solutions. Using NFT’s to monitor, manage and incentivise individual behavior is one way that blockchain technology is adding to the smart city of the future. Let’s focus on three ways that NFTs could be integrated into some of our most important public services.

Deconstructing ownership with Property NFTs

The world of property ownership and real estate has long been ripe for disruption, and Non-Fungible Tokens could be just the solution the industry needs. NFTs are a form of digital asset that use blockchain technology to provide unique, verifiable ownership of an asset or piece of content. While NFTs have primarily been associated with the world of art and collectibles, there is growing interest in their potential applications in the property market. At their core, NFTs provide a secure and transparent way to track ownership of assets, which is a critical component of the property market. By using NFTs to represent property ownership, buyers and sellers can avoid many of the headaches associated with traditional property transactions. NFTs can be used to represent property ownership, simplifying the buying and selling process. Additionally, NFTs could be used instead of heavy weighted rental agreements. This would give a secure way to track the rental market of a city. NFTs can also be used for accurately monitoring, forecasting and manpower needed for property management. NFTs may be causing a stir in the artworld but these broader use cases could help to solve everyday administration headaches for public representatives. Streamlining ownership in the complicated world of real estate is a major way to transform a vital sector in society.

Carbon credit NFTs to incentivize less footprints

From engaging the community in environmental degradation issues to helping reduce overall city carbon emissions, NFTs can be used as a tool for tracking and verifying carbon credits. Carbon credits are often used by organizations to offset their carbon footprint but what about the individuals living in a city who are passionate about seeing the greener side of the city come alive. The issue with traditional carbon credits is that it can be difficult to verify that the investment actually resulted in a reduction in carbon emissions. Now, by using NFTs as carbon credits, companies and individuals can ensure that their investment is transparent. Each NFT can represent a certain amount of carbon emissions that have been offset, and the blockchain can be used to track the ownership and movement of each NFT. You could even go a step further and attach those credits to local emissions thereby supporting the local economy. For example, a reforestation project that is funded by NFTs can create jobs for local communities. This not only helps reduce carbon emissions but also supports the economic development of the area. Overall, using NFTs as carbon credits and emissions trading can help smart cities to achieve their sustainability goals and build more resilient, equitable, and livable communities.

NFTs used as access points

Another way to consider the utility of NFTs within smarter cities is by using them to access public services in several ways. The transparency, storage and self custody could eventually saving taxpayers millions with more effective management of under utilized services. NFTs could be used as proof of eligibility and provide personalized services. Imagine walking up to a bus stop or a train and presenting your NFT as proof of identity. This NFT would contain all the necessary information, including your name, address, and any other relevant data required for the service. Streamlining access points for public services could save the government millions and give more control to city center dwellers. They could also allow urban planners to more accurately assess the needs of the public. For example, where access points for disabled people are failing and what would make is easier for them to receive support they need. NFTs could also help to highlight old services or services that are no longer being used by the public, which could save taxpayers money. By tracking usage patterns over time, city planners could identify services that are no longer in demand or are being underutilized. This information could be used to make data-driven decisions about whether to continue funding these services, or to redirect resources to more pressing needs. In traditional monitoring methods, it can be difficult to obtain accurate usage data for every service. Some services may be overlooked or receive less attention due to limited resources, and therefore, it may be challenging to obtain a comprehensive understanding of which services are being used and which are not. Moreover, NFT access cards could also be used for loyalty programs and rewards for using public services. For instance, every time you use a public service, you could receive an NFT that contains rewards or discounts for future services. This would encourage people to use public transportation more often and also spend time in the city, which would ultimately regenerate the community. The data collected via these NFTs would make for fascinating research and allow for more informed policy decisions with regards to urban planning of our cities in the future. .

Conclusion

Matching smart technologies with the economic, societal and environmental needs of a city can be a daunting challenge. However, harnessing emerging blockchain technology to facilitate positive living spaces is worth investing in for the future. For urban planners it will be crucial to develop a strategy that provides the right public services to the cohort that needs them at the right time. Without the right individual incentives in place engaging citizens in a broader smart city vision will be impossible to implement. For an innovative urban planning recipe of the future, take individual NFTs as incentive models for good behavior, mix in advanced IoT that provides feedback on the management of urban infrastructure, add a dash of smart energy solutions and stir in all of the stakeholders required to make up to date decisions.

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