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[[File:Architecture-of-the-IoT-for-home-care-systems.jpg|thumb|Architecture of the [[IoT]] for home care systems]]
A [[smart city]] is an urban area where collected surveillance data is used to improve various operations. Increase in computational power allows more automated decision making and replacement of public agencies by algorithmic governance.<ref>{{cite journal |last1=Brauneis |first1=Robert |last2=Goodman |first2=Ellen P. |title=Algorithmic Transparency for the Smart City |journal=Yale Journal of Law & Technology |date=1 January 2018 |volume=20 |issue=1 |pages=103 |url=https://www.questia.com/library/journal/1G1-544510684/algorithmic-transparency-for-the-smart-city |access-date=20 September 2020 |archive-date=15 August 2022 |archive-url=https://web.archive.org/web/20220815021439/https://www.gale.com/databases/questia |url-status=dead }}</ref> In particular, the combined use of artificial intelligence and blockchains for [[Internet of things|IoT]] may lead to the creation of [[sustainable]] smart city ecosystems.<ref>{{cite journal |last1=Singh |first1=Saurabh |last2=Sharma |first2=Pradip Kumar |last3=Yoon |first3=Byungun |last4=Shojafar |first4=Mohammad |last5=Cho |first5=Gi Hwan |last6=Ra |first6=In-Ho |title=Convergence of blockchain and artificial intelligence in IoT network for the sustainable smart city |journal=Sustainable Cities and Society |date=1 December 2020 |volume=63 |article-number=102364 |doi=10.1016/j.scs.2020.102364 |bibcode=2020SusCS..6302364S |s2cid=225022879 |url=https://www.sciencedirect.com/science/article/abs/pii/S2210670720305850 |access-date=24 March 2021 |issn=2210-6707|url-access=subscription }}</ref> [[Intelligent street lighting]] in [[Glasgow]] is an example of successful government application of AI algorithms.<ref>{{cite news |last1=Gardner |first1=Allison |title=Don't write off government algorithms – responsible AI can produce real benefits |work=The Conversation |url=https://theconversation.com/dont-write-off-government-algorithms-responsible-ai-can-produce-real-benefits-145895 |access-date=1 April 2021}}</ref> A study of smart city initiatives in the US shows that it requires public sector as a main organizer and coordinator, the private sector as a technology and infrastructure provider, and universities as expertise contributors.<ref>{{cite book |last1=Morrow |first1=Garrett |title=The Robot in City Hall: The Limitations, Structure, and Governance of Smart City Technology Regimes|date=2022 |url=https://www.proquest.com/openview/6785af5e14f63d5e91d47b76337e4aec
The [[cryptocurrency]] millionaire Jeffrey Berns proposed the operation of [[local governments]] in [[Nevada]] by tech firms in 2021.<ref name=nevada>{{cite news |title=Nevada smart city: A millionaire's plan to create a local government |url=https://www.bbc.com/news/world-us-canada-56409924 |access-date=24 March 2021 |work=BBC News |date=18 March 2021}}</ref> Berns bought 67,000 acres (271 km<sup>2</sup>) in Nevada's rural [[Storey County]] (population 4,104) for $170,000,000 (£121,000,000) in 2018 in order to develop a smart city with more than 36,000 residents that could generate an annual output of $4,600,000,000.<ref name=nevada/> Cryptocurrency would be allowed for payments.<ref name=nevada/> Blockchains, Inc. "Innovation Zone" was canceled in September 2021 after it failed to secure enough water<ref>{{Cite web |last=Independent |first=Daniel Rothberg {{!}} The Nevada |title=Blockchains, Inc. withdraws 'Innovation Zone' plan for Storey County |url=https://www.nnbw.com/news/2021/oct/12/blockchains-inc-withdraws-innovation-zone-plan-sto/ |access-date=2022-11-07 |website=www.nnbw.com}}</ref> for the planned 36,000 residents, through water imports from a site located 100 miles away in the neighboring [[Washoe County, Nevada|Washoe County]].<ref name="thenevadaindependent.com">{{Cite web |title=Months before a company lobbied the Legislature to create its own county, it purchased faraway water rights that could fuel future growth |url=https://thenevadaindependent.com/article/months-before-a-company-lobbied-the-legislature-to-create-its-own-county-it-purchased-faraway-water-rights-that-could-fuel-future-growth |access-date=2022-11-07 |website=The Nevada Independent |date=12 February 2021 |language=en}}</ref> A similar water pipeline proposed in 2007 was estimated to cost $100 million and would have taken about 10 years to develop.<ref name="thenevadaindependent.com"/> With additional water rights purchased from Tahoe Reno Industrial General Improvement District, "Innovation Zone" would have acquired enough water for about 15,400 homes - meaning that it would have barely covered its planned 15,000 dwelling units, leaving nothing for the rest of the projected city and its 22 million square-feet of industrial development.<ref name="thenevadaindependent.com"/>
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