Advancement of Blockchain Technology in the Construction Industry

 Definition of Blockchain Technology

The Blockchain is made up of a set of technologies that allow a secure, Digital operations record that is decentralized, synced, and disseminated without the use of intermediaries.

Blockchain technology can be applied in different sectors, for example, in the construction industry. It could be likened to a kind of shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.

Through a Blockchain network, it is possible to track and trade anything that has value. Thanks to this, various advantages are generated in terms of costs and time but also terms of risks and security.

On a blockchain network, almost anything of value may be recorded and sold, lowering costs and risk for all parties.

The Blockchain in the Construction Sector

We know that the BIM Methodology consists of managing detailed information on a building that includes aspects related to both its design and its maintenance to avoid the loss of resources and more accurately manage the construction time of the building. structure or avoid unnecessary costs in future remodeling.

On the other hand, through Blockchain technology, we find several benefits for the construction sector. Among them are the so-called Smart Contracts. These are computer programs that run automatically on a Blockchain network. Smart Contracts make transparent each of the movements that are executed around a project since these remain within the reach of all those who intervene in it, and when they are registered, they cannot be canceled.

Another of the uses of the Blockchain in construction is based on scaling financing sources, optimizing the management of loans and credits, by providing new standards of transparency, and reducing the problems of late payments to suppliers. 

• Advantages of using Blockchain in Construction

In the construction sector, the Blockchain not only favors saving time and costs. This technology eliminates intermediaries allowing them to close agreements and contracts more easily. With the use of the Blockchain, the information management subsists during the life of the building, it is also distributed, accessible, and maintains traceability.

Among the main advantages of using Blockchain technology are cost reduction, security, and speed. If we go into more detail, we will see that the benefits are vast. There are so many benefits that the use of Blockchain in the construction sector brings with it that it has become a key tool to add value to the projects that we will continue to analyze. 

• Secure information

Making all the information in a 3D Revit Model reliable and secure, achieving an immutable trace of the changes made throughout the life cycle of work means being able to reach BIM Level 3, which requires full collaboration and integration between the parties with a single source of information in real-time and reliable. 

• Smart Contracts with BIM

Through the development of Smart Contracts, it will be possible to automate the certification of the progress of the project with BIM so that, if necessary, the agreement between the parties involved, can generate payments or collections automatically. 

• Quality and traceability of resources

Through the Blockchain, a complete record of the life cycle of a construction material can be made. From its manufacture to transportation and the moment of use in construction. In addition, through the aforementioned Smart Contracts, problems with poor quality materials or transport can be avoided and will help to solve them more quickly. 

• Safety and risk reduction

The registration in a Blockchain network also serves to record information related to the Safety and Health of workers. For example, when an operator performs malpractice during his day, preventive actions can be automated to reduce accidents. One of them would be not allowing access to work areas at height without having the appropriate training or PPE. 

• Building sustainably

Registering in a Blockchain network all the information related to environmental parameters is one of the most important benefits of so-called Sustainable Architecture Design. This type of information can be about the carbon footprint, the consumption of natural resources, or the recyclability index of materials. This can help directly in the environmental policy of companies and in advancing Sustainability.