The relationship between Smart Cities and distributed ledger transaction technology (often explained as “Bitcoins”) has never been easy to grasp.

This article attempts to do that.

b     –    26 Jan.

Smart Cities based on IOTA* – what the city of the future will look like

  • The city of the future based on IOTA regulates many procedures and processes completely independently and self-regulating.
  • No more energy would be wasted or a waste container would stand too long when it is already ready for collection.
  • Also the use of means of transport or the filling up of cars and payment is completely autonomous.

Smart Cities are built with new innovative information and communication technology, in which IOTA plays a key role. Sensors connected via the Internet can collect and process data about the cities and a large number of other players can benefit from the automatic evaluation of the data.

What smart cities will look like

One of the objectives of building smart cities is to ensure the efficiency of all its systems. The use of artificial intelligence enables the automation of otherwise complex processes, which can be applied in various areas of human life. IOTA is part of the research project +CityxChange which also explores what the city of tomorrow could look like.

For example, the presence of people in a room can be detected, and embedded sensors will control the temperature to adapt to the residents and reduce the use of light, heat, etc. when no one is in the room.

The city works essentially on the basis of sensors, as street lighting is self-regulating depending on the time of day and whether or not light is needed on the streets. Traffic is also guided by intelligent sensors to ensure smooth operation and driverless transport within the cities, which adapts to people’s needs from time to time.

This transport system, which is more efficient than the current one, will allow the infrastructure to be used for other purposes to improve people’s lives. Public waste bins equipped with e.g. Lidbot sensors can potentially automate waste recycling. These are just a few examples of how Smart Cities will work, based on DLT (Distributed Ledger Technology) and a decentralized peer-to-peer network.

With this technology and the use of artificial intelligence, eGovernance will be streamlined so that paying a fee, transferring taxes, obtaining a license or reporting a problem can be done immediately, privately and without human interference. The use of this technology is already on the advance: by the end of 2020, 50 billion objects are to be equipped with intelligent sensors.

IOTA’s role in Smart Cities

The essential goal of intelligent cities is to improve the standard of living and make life more comfortable for everyone. Therefore, the IOTA project aims to solve a number of major problems facing people around the world.

For example, power supply systems such as solar roofs, buildings, electric vehicles or batteries can easily trace and redistribute electricity so that it is supplied where it is most needed, avoiding waste or lack of energy in a decentralized system. This could be done by using IOTA’s decentralized marketplace, which completely autonomously solves the exchange of electricity and energy between different parties.

Waste recycling will also be automated to ensure a clean environment without the indiscriminate waste disposal that currently prevails. Furthermore, the intelligent deposit system Deposy could be used, which rewards every collector who wants to make a positive contribution to a clean environment.

The Internet of Things (IoT) is also used to make building structures more intelligent. As a result, user information is integrated into such structures to provide better traceability, comfort and maintenance, and to make the best use of space. The use of cars and means of transport can be automated to automatically pay for fuel, and filling stations can also function independently of people.

However, it remains to be seen whether and how quickly the Smart City of tomorrow will actually be habitable and usable by people. The price of IOTA is USD 0.2347 at the time of writing and has shown a small upward trend of + 1.58% within the last 24 hours.


IOTA is not an abbreviation; it’s simply a name, combined from IOT (internet of things) and the word iota, meaning an extremely small amount.

IOTA is a crypto currency which differs significantly from other crypto currencies due to its technology. In contrast to Bitcoin or Ethereum, IOTA does not use the blockchain, but the so-called “tangle”. The tangle is a data structure based on the mathematical concept of the Directed Acyclic Graph (DAG).

The verification of the transactions is not done by the miners, who bundle the transactions into blocks and append them to the end of the block chain. Instead, IOTA achieves consensus on the network by requiring each participant who wants to perform a transaction to approve two previous transactions first. This process ensures that the entire network reaches a common consensus on the current status of approved transactions.


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