Global smart city market to reach $1.29 trillion by 2025: Blockchain leads
Blockchain and smart contracts revolutionizing urban development
While blockchain is often associated with cryptocurrencies, its potential extends far beyond finance, offering innovative solutions and opportunities for managing urban systems, now referred to as smart cities.
According to Merrill Lynch, part of Bank of America, the global smart city market is projected to reach $1.29 trillion by 2025. Cities like Singapore and Dubai have already begun leveraging blockchain to enhance services such as mobility, energy management, and data transparency.
One of the most effective applications of blockchain in urban development is smart contracts, which automate complex city processes like procurement, utilities, and energy distribution among consumers.
Dubai has invested $300 million in blockchain projects, aiming to integrate the technology across all government services. By 2030, the city plans to reduce administrative costs and save up to 20% in operational expenses.
In the Gulf region, the green building market is expected to exceed $66 billion by 2029. Blockchain could support cities like Dubai and Abu Dhabi in achieving net-zero emissions goals. For instance, smart contract-enabled energy distribution automation could reduce waste and emissions, contributing to a more sustainable urban environment.
Enhancing the environment and quality of life
Beyond optimizing city management, blockchain can also boost citizen engagement. By implementing blockchain-based platforms, cities can enable secure and anonymous voting in public consultations, referendums, or community projects.
For example, Chicago is exploring blockchain applications for waste management. Residents can access data to track collection schedules, improving accountability and service quality.
Although successful implementation of blockchain in urban development requires strategic planning, compatibility with existing infrastructure, and regulatory alignment, the momentum for adopting smart city solutions is strong.
Platforms like DownTown, already in use in cities such as London and Dallas, help scale experiences that municipalities can adopt to improve urban services.
As blockchain technology continues to evolve, its potential to optimize city governance will only grow, making cities more efficient and better adapted to the needs of their residents.
The Blockchain Association, a lobbying group comprising over 100 member organizations, has sent a letter to Donald Trump outlining key steps the U.S. president could take to support the crypto industry during the first 100 days of his administration.
The letter highlights five measures designed to create a favorable environment for crypto companies and users:
