With this idea, each city can have its own coin, a separate NFT with a record that is kept continuously on the blockchain, making running cities more transparent and easier to control.
Vitalik Buterin, co-founder of Ethereum has just released a document titled “Crypto Cities”, describing the growing interest of many governments around the world in a variety of new technologies, especially cryptocurrencies. In the document, Buterin proposes integrating many of the best technologies of these cities with cryptocurrency technologies to build crypto cities.
Buterin states: “Another interesting trend of the last year has been the rapid mainstreaming of crypto ideas such as coins, non-fungible tokens, and decentralized autonomous organizations (DAOs). So what would happen if we combine the two trends together? Does it make sense to have a city with a coin, an NFT, a DAO, some record-keeping on-chain for anti-corruption, or even all four?”
Integrating instead of creating new
Source: Crypto Daily
One example of cryptocurrency integration experimented in cities is the Miami Coin, a cryptocurrency token built on Bitcoin for the purpose of developing the city of Miami. Likewise, Reno – a city in the state of Nevada – is also testing RenoDAO and NFT projects.
The crypto cities proposal comes just days after Facebook changed its name to Meta – a move that shows its focus towards building a truly digital world using blockchain technology.
On the contrary, rather than aiming to create new virtual worlds, Buterin’s proposal is about using decentralized technologies in existing cities to turn them into autonomous crypto cities. Metaverse – Facebook’s idea of a super digital universe – is where people can interact and do whatever they want in the form of their avatar. But the idea was not well received because of Facebook’s scandal in its history of managing user data.
In Awe of CityDAO
In his document, Buterin also highlights his most attracted projects – CityDAO. Unlike Miami Coin or RenoDAO which was built from the ground up and is still not operational, CityDAO is a DAO company with legal status, existing under Wyoming DAO law, in an effort to create new towns from scratch.
Unlike other companies, the company’s regulations and laws are encrypted with blockchain, instead of paper as usual. In this way, instead of a CEO running the organization, the rules are formed by consensus among a group of individuals. This is the attraction of CityDAO.
A common vision and specific use of blockchain technology
Sharing the same vision with Buterin are also other names in the world of cryptocurrency, such as Brian Armstrong, co-founder and CEO of cryptocurrency exchange Coinbase, billionaire Mark Cuban, who has always been enthusiastic about potential cryptocurrency projects
Vitalik Buterin said while the above examples show the growing influence of the cryptocurrency market, it also illustrates the potential of many other cities to integrate blockchain technology into their existing systems. He paid special attention to two specific use: Applying blockchain to existing processes to create a more reliable, transparent and easily verifiable version and to implement new and experimental forms of ownership of land and other scarce assets, as well as new forms of governance.
Metaverse discussion is growing, but Buterin’s crypto cities proposal could prove to be a viable solution in the short term.