Blockchain and how it can change construction
Blockchain has had a short but fascinating history. Though the general concept of the technology was outlined a few decades ago, it has only been practiced for a handful of years. And throughout that brief history of blockchain, the defining achievement has unquestionably been facilitating the launch of cryptocurrency.
Today, it’s common practice to buy or sell cryptocurrency as a means of investment. There are ways to do this without actual direct transactions, such a through CFD or futures trading. For the most part though, cryptocurrency trading occurs over the blockchain, with quantities of different assets being bought and sold in an attempt at financial gain. This alone shows how quickly and profoundly, blockchain’s purpose can evolve, even concerning cryptocurrency. In a matter of years, it has developed beyond being a digital ledger and is now definitely a trading platform.
Even as this change has resulted in the cryptocurrency world, the blockchain has developed to suit other purposes. At this point, numerous industries are being disrupted by blockchain, including banking, real estate, healthcare, and others. And one more industry that doesn’t always get as much thought, but which will be changed by blockchain, is construction.
Upon first thought, particularly if you aren’t especially well-known with blockchain, this might articulate like an odd fit. We study of construction as a very hands-on industry with little to do with the digital world, and so it doesn’t normally come to mind as a fit for blockchain disruption. However, the reality is that there is a lot about this industry that blockchain might be more or less ideally suited for.
One article on this topic examined into blockchain’s potential to affect the construction and pointed out some of the factors that could make the technology especially useful. The article emphasized “contractual processes and paperwork” relating to building codes, safety regulations, and project management — to speak nothing of inventory control and any involved transactions. All of these things are essential to real estate projects, and all of them, in theory, could be transferred to the blockchain. They would be at least partly automated, and a great deal of time would likely be saved (and hassle avoided).
The basic concept here is that blockchain tech can be utilized to perform cause-and-effect functions. For instance, a construction company can input a function that transfers reserves to a supplier when the company gets material; it might organize agreements concerning safety and regulation to be digitally cataloged once all interested parties have signed. From these instances, you can start to see how any number of important functions in a standard construction project might be made more exact and more effective through the blockchain.
For the most part, this disruption hasn’t quite taken effect just yet. With blockchain tech continuing to expand into new industries, and with such clear potential benefits, construction is expected to combine the tech shortly.