With Kodak recently confirming that it would be launching its own cryptocurrency to support digital photographers to sell their work online, now is a good time to explore the possible role of cryptocurrencies in construction.
With most contractors and subcontractors still preparing their payment applications and lien waivers by hand and using pen and paper, how can any cryptocurrency improve industry efficiency and productivity? Below is a list of ways that blockchain technology can have a positive effect sooner rather than later.
Building Information Modeling (BIM)
There are several ways that blockchain can dramatically improve the security and reliability of BIM. They can log infinite amounts of data about a particular BIM model component and ensure that it cannot be changed or, if changes are made, instantly communicate who made them. If an issue arises, there will be no confusion over ownership.
Supply Chains and Scheduling
The construction sector has experienced challenges in increasing its productivity and efficiency because the supply chains to build infrastructure assets and buildings are fragmented. Materials can be specified by a designer in one country, sourced in a different one, and then installed by a subcontractor under the guidance of a construction manager.
Blockchain has the potential to streamline the supply chain. When a piece of equipment is delivered to a job site, the transfer of digital cash could automatically trigger a connected obligation, such as the supplier shipping a pallet of materials. These obligations would be coded into the intelligent contracts in this form of the blockchain.