Blockchain and the Construction Industry 

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While the construction industry has dipped its toes into the water of blockchain in the past unsuccessfully, the recent inroads made warrant reconsideration of the process.  Miami’s growing tech scene and the City of Miami’s Mayor’s offices announcement of the pursuing options for paying, collecting, and investing with cryptocurrency, show only growing popularity for blockchain and its related products. Recent applications, along with increased motivation mean the drive to use and expand blockchain is increasing.  

What is Blockchain? 

While most people associate blockchain with cryptocurrency, there are actually many more uses for it. And for those unfamiliar with the technology behind it, it may seem terribly confusing, but with a bit of research, it doesn’t need to be.  

A blockchain is a decentralized ledger system, which means the ledger itself does not exist in a single location, but in multiple places. This ledger tracks all transactions conducted across a peer-to-peer network.  Users involved in the system have access to the full ledger and can confirm transactions occur or can occur without a centralized authority (when it comes to money, translate that to a bank).  

How Could Blockchain Affect the Future of Construction 

Blockchain can be used throughout the construction process, from initial bid to project completion. Using blockchain can increase the efficiency and ease of the process, increase trust, and enable greater transparency. Blockchain could be used to:  

  • Make project-sensitive documents easily accessible to all parties, so safety consultants can view the entire scope of the project and make suggestions accordingly.  

  • Create a universal ledger of payments, hours logged, and/or materials shipped. 

  • Coordinate business operations and administrations among various stakeholders in the project. 

  • Update and record transactions related to Smart Contracts 

  • Track, accept and make payments in actual currency or in crypto-currency. 

Should You Prepare? 

The construction industry has been around since the dawn of civilization, but taking advantage of technology can make the process faster, more efficient, and less costly. Just like BIM has become increasingly common in the industry, blockchain will become more and more of a regular discussion, it’s only a matter of time before solutions become the norm.  

Christopher Ramos