Blockchain technology is often associated with cryptocurrencies such as Bitcoin, but has many more applications, particularly in the area of mobility. Blockchain is a decentralized database that records transactions transparently and tamper-proof. In mobility, this technology opens up new opportunities to optimize transport networks, prevent fraud and increase efficiency. Blockchain provides a secure platform for managing the data and transactions that occur daily in complex transportation systems. […]

Blockchain technology is often associated with cryptocurrencies such as Bitcoin, but has many more applications, particularly in the area of mobility. Blockchain is a decentralized database that records transactions transparently and tamper-proof. In mobility, this technology opens up new opportunities to optimize transport networks, prevent fraud and increase efficiency. Blockchain provides a secure platform for managing the data and transactions that occur daily in complex transportation systems.

Fun fact: According to a study by Deloitte, blockchain technologies in the transport sector could generate global savings of up to 30 billion US dollars by 2030.

Blockchain is based on several principles that make it particularly suitable for use in mobility.

Decentralization

Instead of a central database, information is stored in a network of nodes. This decentralization makes the system resistant to failures and manipulation.

Transparency

Every transaction is recorded in the blockchain and can be viewed by all network participants. This promotes trust and prevents fraud.

Security

Cryptographic encryption and consensus mechanisms make the blockchain virtually tamper-proof. This is particularly important for sensitive data such as ticketing information or payment details.

Smart contracts

Smart contracts are self-executing contracts that are executed automatically when certain conditions are met. They automate processes such as payments, bookings or insurance claims.

Practical example: A blockchain-based car sharing system could use smart contracts to only grant access to vehicles once payment has been confirmed.

Blockchain offers a wide range of applications that can make mobility safer, more efficient and more transparent.

Digital ticketing and payment processing

Blockchain enables a tamper-proof and transparent ticketing system for public transportation. Users can purchase their tickets digitally without having to rely on central providers.

Car sharing and ridesharing

Decentralized platforms could make carsharing and ridesharing services more efficient by enabling the booking, payment and handling of journeys directly between users.

Logistics and supply chains

In logistics, blockchain can be used to track the transportation of goods and prevent manipulation in the supply chain. Every movement of a delivery is recorded in the blockchain, which increases transparency.

Traffic management and parking systems

Blockchain can make traffic management systems more efficient by providing real-time data on traffic flows and parking options. Users could reserve and pay for parking spaces via decentralized platforms.

Practical example: a pilot project in Vienna is using blockchain to securely manage parking tickets and make the process more transparent.

The introduction of blockchain in mobility offers numerous advantages that benefit both users and operators.

Transparency and trust

Blockchain increases transparency by making all transactions publicly visible. This creates trust between users and providers and reduces fraudulent activities.

Fraud protection and security

Cryptographic encryption makes the blockchain secure against manipulation. This protects users from fraud and operators from financial losses.

Increased efficiency

Blockchain automates processes such as payments and bookings, saving time and costs. Smart contracts make it possible to minimize administrative tasks and speed up processes.

Data integrity

Data stored in the blockchain cannot be subsequently changed. This ensures that all information remains correct and trustworthy.

Expert opinion: According to a study by PwC, blockchain-based systems could reduce operating costs in the transportation sector by up to 15 %.

Despite its advantages, there are also challenges that need to be overcome when introducing blockchain in mobility.

Scalability

Blockchain technology reaches its limits with high transaction volumes. Cities with busy transportation systems need to ensure that the technology can be scaled.

Energy consumption

Blockchain systems, especially those with proof-of-work consensus mechanisms, consume significant amounts of energy. This is at odds with the sustainability goals of many cities.

Legal and regulatory issues

The introduction of blockchain in mobility requires a clear legal framework, particularly with regard to data protection, liability and contract law.

Acceptance by users and operators

The implementation of new technologies requires time and acceptance from users and operators. Transparent communication about the benefits and functionality of blockchain is crucial.

Expert opinion: According to a survey by Gartner, 40% of companies consider regulatory uncertainty to be the biggest obstacle to the introduction of blockchain.

Vienna: Blockchain for parking systems

In Vienna, blockchain is being used to digitize parking management. Users can reserve and pay for parking spaces and extend their parking times, all via a decentralized platform.

Seoul: blockchain for local public transport

In Seoul, the city is testing a blockchain-based platform for public transportation that makes ticketing and payment processing more secure and transparent.

Rotterdam: logistics with blockchain

Rotterdam is using blockchain to make logistics chains in the port more efficient. Every movement of containers is recorded in the blockchain, which increases transparency and prevents fraud.

The further development of blockchain technology will continue to revolutionize mobility in cities.

1. Integration with IoT: IoT devices could be connected directly to the blockchain to capture and analyze traffic flows and vehicle data in real time.
2. AI-powered analytics: AI could use blockchain data to analyze traffic flows and create predictive models for more efficient mobility
3. Smart contracts for insurance: Insurance claims could be automated and processed faster by relying on blockchain-based smart contracts.
4. Decentralized mobility platforms: Blockchain could serve as the basis for platforms that connect users* directly with providers* and eliminate the need for centralized intermediaries.

Future outlook: In Dubai, a blockchain system is being developed that integrates traffic management, insurance and ticketing into a single platform to make the city’s mobility more efficient and transparent.

Blockchain technology offers enormous opportunities to make mobility in cities safer, more efficient and more transparent. From digital ticketing and car sharing to logistics and traffic management – blockchain creates trust and optimizes urban processes. Despite the challenges, particularly in terms of scalability and legal issues, blockchain has the potential to fundamentally transform mobility and make cities smarter and more sustainable.

Concluding thought: Blockchain is more than just a technical trend – it is a transformative force that will shape the mobility of tomorrow. A future in which transportation systems are transparent, efficient and connected starts with blockchain technology.

By the way: the first woman is now at the head of the DGGL Presidium.

After an extension, the COP27 global climate conference in Sharm El-Sheikh ended in the early hours of November 20. There was one major breakthrough, but overall the outcome is rather disappointing. Read everything you need to know about the COP here.

The Sharm El-Sheikh climate agreement

It is now common for climate conferences to end in overtime. The often tough, complex negotiations took a little longer than planned this year too. In the morning hours of November 20, 2022, the time had come and the expected climate agreement was adopted by almost 200 countries.

The COP27 breakthrough

Expectations for COP27 were not too high, although the consequences of climate change, inflation and the war in Ukraine meant that the stakes were particularly high in 2022. Despite many doubts, a breakthrough was achieved: support for victims of climate change was officially agreed. These financial benefits, which are intended to remedy climate damage, are known as “loss and damage”. The best example of the need for such financial resources is the devastating floods in Pakistan. Climate justice is required here: those who are most responsible for the drastic consequences of climate change are obliged to make compensation payments to the countries that often emit little and are severely affected.

After a long struggle and a lot of pressure from the G77 group, which includes over 130 poorer countries, an agreement was reached. The EU played a leading role in this. However, it demanded that the financial burden of the climate damage fund should not fall solely on richer countries. Details on who pays how much are to be decided by COP28 in 2023.

By the way: You can find our article on expectations for COP27 here.

Fossil fuels

Last year’s COP26 in Glasgow focused on fossil fuels and coal in particular. For the first time, the reduction of dependence on coal was included in an international climate agreement. This year, there was a draft that called for all types of fossil fuels to be phased out. However, this was rejected.

And that’s not all: representatives of major oil and gas companies were present in large numbers at COP27. The exhibition area was partly dominated by companies whose goals were in stark contrast to the content of the COP27 negotiations. The Egyptian hosts even negotiated new gas contracts during the conference.

As a result, although the final document emphasizes that renewable energy should be promoted, it also contains references to “low-emission energy”. This refers, for example, to gas, which as a fossil fuel produces fewer emissions than coal. The vague term also provides loopholes for the use of other fossil fuels, whose emissions can be offset by mechanisms for carbon capture and storage.

1.5 degrees at the COP27

The famous goal of the Paris Climate Agreement from 2015 to limit global warming to 1.5 degrees can also be found in the COP27 final declaration from Sharm El-Sheikh. The text repeats the statements from the Glasgow Pact of 2021 to limit global warming. However, the agreement does not go any deeper than “The 1.5C target requires rapid, deep and sustained reductions in global greenhouse gas emissions reducing global net greenhouse gas emissions by 43% by 2030 relative to the 2019 level”.

Last year in Glasgow, it was decided to take a much more ambitious approach to climate protection measures in a mitigation program. Here, too, many rich countries resisted making commitments. They insisted on making climate protection measures optional and in line with national circumstances. Further discussions are to be held annually until 2026.

Financing

The Prime Minister of Barbados, Mia Mottley, gave an impressive speech in Sharm El-Sheikh. In it, she spoke of the loss of human life, livelihoods and dignity. Among other things, she proposed the “Bridgetown Agenda” to finally make progress in financing green, resilient investments. This agenda proposes reforming the international financing system. According to estimates by the International Energy Agency, 4 trillion US dollars will be needed every year until 2030. This is the only way to invest enough in renewable energies by 2030 to reach net zero by 2050.

International development banks such as the World Bank are called upon here to increase climate financing and make it more easily accessible. This was also recommended at the G20 summit taking place at the same time, at which Germany and the USA, among others, advocated a reform of the World Bank. However, the proposal was not included in the COP27 final declaration. It is to be discussed further at IMF and World Bank meetings in the spring.

Before the COP is after the COP

The next COP will take place in Dubai in the United Arab Emirates at the end of 2023. Countries should submit their adjusted Nationally Determined Contributions (NDCs) by then at the latest. The EU has also promised to develop details of the planned financial shield for climate damage by then and to publish a precise figure for the funds available. Under the leadership of a country whose economy is 30 percent oil-based, no official move away from fossil fuels is to be expected at the COP in 2023 either.

The disappointment surrounding COP27 is great. At the same time, however, there is a growing awareness that climate policy is also happening on many other stages. Civil society keeps a closer eye on the climate conference every year and is now demanding that governments keep their promises.

Despite all the negative news, there is still a glimmer of hope: 10 years ago, the world was still on course for global warming of 6 degrees. About five years ago it was 3 degrees. At present, we can expect 2.4 to 1.8 degrees of warming. This is still significantly more than 1.5 degrees, but the review also shows what is possible. Now we need to demonstrate with action what the implementation of climate conferences looks like.

Speaking of COP28 in Dubai: Stefano Boeri presented the latest project at COP27 in Egypt. Does this first prototype for the MENA region address sustainable urban planning? Doubtful. Read more from our colleagues at Baumeister: Dubai Vertical Forest.