Blockchain and infrastructure are both news, but how are they connected?

Blockchain and cryptocurrencies are booming and as the conversation about infrastructure investments increases, the question needs to be asked; how can blockchain improve current and new infrastructures?

While the conversation about blockchain and cryptocurrencies might seem to some abstract or more conceptual than relevant on a daily basis, the ongoing debate over investment and infrastructure rehabilitation is more tangible. Regardless of the statistic cited, there are concrete and quantitative benefits that come from improving infrastructure. These include reduced commuting times (and pollution), lower risk of breakdowns during high-stress situations, and adaptation to climate-induced changes. These benefits, significant as they are, tend to focus primarily on the benefits of investing in physical infrastructure; what about digital infrastructure?

Especially as the focus on green investments continues to accelerate and the importance of digital infrastructure comes to the fore in a remote environment, the development of a digital infrastructure framework is of paramount importance. As we have seen repeatedly, however, the security and data protection policies relating to digital infrastructure and development have not kept pace with the enormous volume of information handled by these networks. Blockchain technology, as a digital technology tool developed to secure and transfer information between different network members, appears well positioned to anchor the continued growth and development of the digital infrastructure.

Let’s take a look at some aspects of digital infrastructure that can benefit from greater blockchain integration across the board.

Broadband expansion. When the term infrastructure is mentioned, what often comes to mind are highways, trains and other physical structures. Important to be sure, but these are only part of the larger infrastructure conversation. As digitalization and remote working become more and more a part of everyday life around the world, access to reliable and secure broadband is crucial for personal and professional success. Particularly in the age of data breaches and other network failures, blockchain has an important role to play in the continued development of the internet and fair access to online resources.

The increase in the percentage of work, education and personal life that moved online during 2020 simply highlighted how important access to secure, high-speed broadband is for economic and social progress.

Intelligent infrastructure. Much has been written, and much is expected, about the emergence of smart cities, smart infrastructure and smart grids. Whether it’s focused on the emergence of the Internet of Things (IoT) or simply on increasing existing infrastructure and technology tools, the idea of ​​smart infrastructure is promising. Starting from the first point, however, for these advantages to materialize and manifest as promised, the underlying technology platform must be secure and scalable. The risk of misinformation, intentional or unintentional, spread across a digitally enabled infrastructure is significant, but it’s something a blockchain-based system can help address.

Even simply having autonomous vehicles, which in themselves offer cost savings and benefits, requires a virtual network to be scalable, responsive and secure to function as advertised.

Solar energy networks. The rise of solar panels, both for environmental reasons and for reasons of cost savings by individuals and companies who have adopted these tools, has generated a wider interest in the renewable or green economy than any other initiative. By removing the layers, however, there are more problems that require integrated, safe and reliable solutions to function effectively. Whether it’s the process by which energy is sold to the existing grid, the credits issued for the adoption of solar panels or simply the monitoring and (hopefully) improving the performance of these panels, data integrity is essential. The green economy has significant promise, but to operate sensibly and sustainably, having tools to help prevent green washing is imperative.

On paper, the idea of ​​reselling electricity to the existing grid and having a more democratized energy generation and transmission process makes perfect sense. This means, however, that the already complicated process of power transmission and distribution will be further complicated and the integrity of this process is absolutely essential.

Infrastructure financing. Infrastructure may be a popular voting measure and benchmark tool in the policy toolkit, but when it comes to paying for these projects, there tends to be less consensus. Funding usually comes from government sources through voting initiatives, special taxes, and valuations such as air rights taxes or some sort of public-private partnership. These methods will surely remain, but introducing blockchain into the broader infrastructure conversation allows tokenization to come to the fore. The ability to tokenize and, in essence, crowdfund, some infrastructure projects opens the door to new investors looking to capitalize on the growing interest and appetite for infrastructure projects.

Two of the hottest and most discussed topics and ideas in modern conversation are blockchain and infrastructure, but the connection between these two topics has not seemed – until now – made in a high profile way. Infrastructure is a widely recognized economic stimulus, but has routinely been subject to inefficiencies, a lack of transparency and an inability to consistently measure the impact and data generated by these projects.

Blockchain is not a magic solution to infrastructure problems, but by integrating blockchain-based or blockchain-enhanced tools into infrastructure projects, the ability of such initiatives to deliver sustainable, quantifiable and equitable benefits will only increase.