Cryptocurrency and Blockchain have been integrated into our society whether you like it or not. By the day, different sectors have begun to take on different ideas and possibilities it can offer. This article, brought to us by Coin Central, touches on how Blockchain and Construction will help build us a new world.
When we think about industries set for disruption by blockchain, construction probably isn’t top of the list. After all, the traditional image of a building site seems far removed from crypto, coding, and hackathons. But there are potentially enormous benefits for putting blockchain and construction together.
This article will round up some of the possible use cases for blockchain in the construction industry.
Blockchain and Construction Supply Chains
A bad workman blames his tools, right? Maybe that’s a bit harsh, though. After all, the construction industry is dependent on the availability of quality supplies and tools, at the right time and in the right place. Given that the sector is highly fragmented with many different players, big and small, supply chains are a big deal.
Purchase orders, delivery notes, and invoices are often still paper-based. Firms frequently don’t know if the supplies they need are in stock when they start a project, which leads to delays and incurs costs.
These aren’t even the worst consequences. UK government contract Carillion collapsed at the start of 2018, affecting the jobs of around 43,000 people as a result. Sources pointed to its poor supply chain management as being a critical factor in the collapse, through lousy credit management and a lack of visibility over projects and required supplies.
The blockchain is already proving its ability to transform supply chains, in one instance through the partnership between Walmart and IBM. Using blockchain to manage construction supply chains could create a single source of truth regarding the availability and provenance of construction supplies, as well as tracking payments.
The industry is taking notice of this use case for blockchain and construction. Recent announcementshave now confirmed that Probuild, one of Australia’s largest building firms, has partnered with US blockchain construction innovator Brickschain for managing its global supply chain. The announcement confirms that “Probuild has the vision that Blockchain, IoT and Big Data can revolutionize the construction supply chain.”
Blockchain and Construction Project Management
Construction projects rely on various parties to work together to complete a building based on pre-defined specifications. Each party expects payment based on work done. Therefore, the peer-to-peer connectivity of blockchain, combined with smart contract functionality, brings excellent opportunities to streamline construction project management.
One study into the potential of blockchain in construction project management found that “[o]n the construction site blockchain can improve the reliability and trustworthiness of construction logbooks, works performed and material quantities recorded.”
Industry publication Construction Manager (they don’t mess around with fluffy, ambiguous names in this business) also reported on the development of two prototype applications combining blockchain and construction.
TraderTransferTrust is a payment system built on blockchain that triggers payment only on the completion of work done. Physical proof of work, if you will. ConstructCoin is another project from the same development team. It aims to create a marketplace of information about the construction industry.
Again, this article was shared with us by our friends at CoinCentral. Go check out some of their other work we’ve published here.
Have a question for us? Did we miss a detail? Let us know! Send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter, Facebook, Instagram, LinkedIn, or even connect with us directly on our website! We look forward to hearing from all of you.