World Economic Forum: Hello blockchain, goodbye traffic jams

Traffic congestion is a common problem in all cities around the world, seriously affecting economic development and the physical and mental health of office workers. The losses caused by traffic congestion amount to billions of dollars, increasing the stress of office workers, endangering their health, and even leading to premature death in severe cases.

Traffic congestion affects health and economic development

Office workers are wasting more and more time commuting every day, which increases their fatigue and stress, and also makes them deeply exposed to the harm of pollution.

Air pollution caused by traffic congestion is deadly. Traffic jams expose office workers to toxic gases. According to statistics from the Harvard School of Public Health, in 83 major urban areas in the United States, more than 2,200 people die prematurely each year due to traffic jams.

In addition, the economic losses caused by traffic congestion are staggering. INRIX, the world's leading provider of road traffic information and driver services, predicts that from 2013 to 2030, the losses caused by traffic congestion in France, Germany, the United States and the United Kingdom can be said to be an astronomical figure - 4.4万亿美元.

The economic impact of traffic congestion on the United States is staggering. By 2030, the cumulative losses will reach 2.8 trillion US dollars. This figure is roughly equal to the total amount of taxes paid by American citizens last year.

Self-driving cars, Bitcoin and blockchain could end traffic jams

In order to alleviate traffic problems, the government has taken a lot of measures in recent years and spent billions of dollars, but traffic congestion has never been solved.

Today, thanks to the technologies brought about by the Fourth Industrial Revolution, experts and futurists are optimistic that cities can once again rid themselves of the cancer of traffic congestion.

The World Economic Forum (WEF) reports that urban transportation reforms rely primarily on two specific technologies: driverless cars and Bitcoin blockchain technology.

The authors, Thomas Birr and Carsten Stöcker, believe that blockchain technology plays an important role in this:

1. In a blockchain system, fares can be deducted directly from the passenger’s digital wallet or credit card and paid to the car owner instantly.

2. Identity authentication and acquisition as well as P2P transactions can not only make vehicle information public, but also enable safe and convenient sharing of infrastructure such as toll roads, gas stations and parking lots.

3. The blockchain-based identity authentication system can prove each user’s identity, age, insurance coverage, payment ability and other information, while also ensuring the user’s anonymity, keeping their travel information and payment methods confidential.

4. Regardless of the passenger’s destination, transactions governed by standard templates of smart contracts ensure accuracy, enabling instant taxation and regulatory reporting.

Several teams are already working on specific solutions. In October, a team of PhD students from the Cooperative Research Centre for Spatial Information (CRCSI) proposed a market-based system concept to solve traffic congestion using Bitcoin blockchain technology.

During their research, the students came up with an innovative solution: drivers can reserve a space on a road in advance. The route the driver chooses depends on the urgency of the passenger's trip. Usually, a more popular road (a busier road) has a higher reservation fee than an unoccupied road.

Since the roads chosen by passengers are controlled by different organizations, our system can achieve reasonable distribution of value by executing contracts. Once the specific terms are completed (for example, the trip is completed), the contract in the blockchain can automatically start executing commands, transferring the value (tolls) in the hands of users to the hands of road holders, which is also a reform of the traditional road charging model.

In addition, some startups have begun deploying blockchain solutions to ease traffic conditions.

For example, La'Zooz has developed a decentralized smart transportation platform based on the Bitcoin blockchain, which is a social carpooling platform. La'Zooz's official website states that this platform can "synchronize vacancies and transportation needs in real time, providing passengers with an excellent carpooling experience at a reasonable price."

Bitcoin and its blockchain technology can help developers and entrepreneurs develop innovative solutions to traffic congestion. The combination of Bitcoin's blockchain technology with ride-sharing and driverless technology can completely change urban traffic conditions and provide new solutions to eradicate traffic congestion.