How Blockchain Will Change Construction.
Blockchain; A digitized, distributed ledger that immutably records and shares information — could enable the commercial real estate (CRE) industry to address these inefficiencies and inaccuracies, according to consultancy firm Deloitte.
In the dynamic world we live in, our industry is constantly striving to develop ways to improve efficiency. Blockchain has recently come up on our radar as something of interest, and worth noting its implementation in construction.
Benefits of Blockchain.
These are some more general benefits to introducing Blockchain technology. To list some;
Near real-time: Blockchain enables near real-time settlement of recorded transactions, removing potential conflicts and reducing risk.
Direct transactions: Blockchain technology is based on a digital signature, allowing any two parties to transact directly with each other without the need for a trusted third party, such as a regulatory or government authority.
Distributed ledger: The peer-to-peer distributed network records a history of all transactions. Blockchain retains a secure source of proof that the transaction happened.
Fraud proof: Blockchain contains a certain and verifiable record of every transaction ever made and prevents deleting of past information, which alleviates the risk of double-spending, fraud and manipulation of transactions.
Blockchain in the U.A.E
These some keys elements that contribute to the incorporation of Blockchain more generally in the UAE. Initially, the UAE intended to be the first country to conducts all of its transactions through Blockchain technology. A core element of the efficiency that Blockchain will provide the UAE is the conversion of all visa applications, bill payments and license renewals, to an electronic encrypted database. This will save an annual 100 million documents from having to be printed. This will equate to a saving of c.$1.5 billion.
Something that has already reaped the benefits of Blockchain technology, is the introduction of the local blockchain-based cryptocurrency, emCash. This can be used for payments of coffee, school fees, and even utility bills.
Blockchain in construction
Blockchains implementation in construction has recently become a topic of talks amongst construction industry players. Now realizing that Blockchain-based contracts could transform the core operations of the sector, in areas such as property transactions sales, purchases, leasing, management, and financing.
Smart contracts that identify accountabilities and trigger milestone-based payments could automate agreements
Blockchain-enabled applications that aggregate data into a shared project management dashboard could help to manage workflow
A distributed ledger that keeps an end-to-end chronicle of the construction process could record all building inputs and assets, including warranties and maintenance checkpoints
Blockchain-enabled apps that track materials, testing, and results against building codes and standards could streamline inspections
With its ability to manage, execute, and distribute crypto-currency, could the same technology be used to enable the clean/automatic execution of strategic projects in a conservative sector like construction? The U.A.E is heavily pushing to incorporate Blockchain technology in as many areas as possible and has already initiated the said process. The potential for this uncharted territory of Blockchain technology just makes us even more excited for the future of our industry.
