Blockchain technology has an interesting history. Though 3 decades old, it reached new heights at a faster rate in the recent past, say a few years ago. The underlying technology of cryptocurrency is being explored in many industries for its benefits. Industrial sectors like banking, insurance, logistics, healthcare, and so forth are already witnessing the benefits of blockchain.
Having said this, blockchain is becoming one of the disruptive technologies of industry 4.0. The blockchain industry is expanding its influence in other sectors too. One such industry which is the discussion topic here is that of construction. Let’s learn more about the application of blockchain technology in construction.
Blockchain in construction
It is anticipated that blockchain would solve many prevailing problems in the industry through the direct witness of its benefits in other industries. The construction firms have realized the benefits of technology in other industries and are exploring it further by implementing the solution in their industry.
The properties of blockchain that attract the industry include immutability, transparency, consistency, and disintermediation. Further, blockchain solves the privacy and confidentiality problems as the systems are decentralized. The data can get viewed by anyone in the network removing the need for trust.
Let’s identify the pressing issues in the construction industry and understand the potentiality of blockchain in addressing them.
Prevailing issues in the construction industry
A few instances, wherein the construction industry is facing issues include –
- Continuity of supply chain
- Lack of trust among stakeholders
- Delay in payments
- Human errors in administrative work, and
- Fraudulence
Blockchain can be applied to these areas successfully. Let’s find out how.
Potential benefits of blockchain in construction
A few of the potential benefits in construction are briefed here.
Supply chain management:
Currently, the industry relies on contractual agreements which may not be feasible all the time as it may have trust issues. As a solution, smart contracts can be used to make purchases, track, and verify materials in the supply chain in real-time. The smart contracts are stored and can get executed in a highly secure manner. This reduces counter-part risks among the suppliers and contractors to a greater extent.
Blockchain improves the management of compliance, settlement of payments, planning pf materials, and other supply chain-related operations with better efficiency and trust.
Managing models:
Currently, the industry has a pre-set information regarding building components. Further, the information is available only with limited persons. It might not get updated always. With blockchain, the building information is made live and vast. It also integrates potential solutions like the Internet of Things (IoT), Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI).
Blockchain brings all the participating parties together to design the project and build trust among them efficiently while meeting the expectations of the client.
Waste management:
Given the global awareness regarding conservation of the environment, it is essential to meet the regulations of the government. Blockchain technology helps to optimize carbon management, carbon trading, and assist in every operation. Also, it can be used to conserve energy, waste trading, and circular economy.
Summary
Blockchain technology is used to perform functions that have loopholes. The main reason to use blockchain is building trust and making processes transparent. Any number of functions in a construction project can be made efficient via blockchain.
If you are a novice or interested to explore the world of blockchain in the construction industry, it is time to learn blockchain principles and its advantages to explore them for industrial benefits. Take this opportunity of COVID-19 self-isolation period and social distancing to upgrade your skills in blockchain by pursuing a blockchain professional certification.
More and more industries are likely to integrate technology in the near future. Get ready yourself to meet the demands of the future by earning a blockchain certification. Make a career in trending technology and carve a successful path in your career.