Decentralization Principles of Blockchain and BC Tokenization (NFTs) in the Era of Smart Cities

Abstract

This chapter delves into the fundamental concepts of distributed and non-distributed systems, laying the groundwork for understanding the intricacies of blockchain technology. A comprehensive overview of public, private, and hybrid blockchain networks is provided, highlighting their unique characteristics and applications. The chapter explores the concept of blockchain tokenization, with a particular focus on non-fungible tokens (NFTs) and their potential to revolutionize security, authentication, and asset digitization. A critical analysis of the challenges and future directions of blockchain technology is presented, followed by an examination of existing NFT-based CPS authentication mechanisms and gaps within the Web2 & Web3 architectures. The chapter concludes with a comparative literature review of NFT-enabled solutions for the cyber-physical environment, highlighting their strengths and weaknesses.