There’s little doubt that if combined properly, IoT and blockchain have the potential to redefine the entire construction industry as we know it. And this is fantastic news because what has for a long time been plagued with numerous pitfalls could do with a little more transparency, effectiveness and accountability. Here are some of the possible applications of blockchain in the current construction niche.
Streamlining Payments and Financing
Construction is a generally capital intensive venture and it’s not uncommon for transactions to run into hundreds of thousands of dollars at a go. Also considering that contractors and suppliers of building material will typically request advance payments before delivery, late or delayed cash flows can seriously hamper the progress of the project. A blockchain-based payment system will, fortunately, streamline this otherwise cumbersome process by getting rid of the paper trail and reducing lead time for the approval of transactions between parties involved.
Traceability and Provenance
Tracking assets and goods in the current supply chain system using present technology is not just cumbrous but also quite expensive and difficult to replicate regularly. A blockchain-shoehorned system will modernize and straighten out these kinks thereby improving the overall operational impact of the industry. What’s more, it is bound to reduce cases of fraud, increase forecasting accuracy and ease collaborative planning in the industry.
Simplification of Compliance
Submitting and meeting proof of compliance such as NECs, taxes, professional registrations, is presently a time-consuming, arduous and costly process. Implementing a blockchain system that allows parties to put proof-related docs online at the comfort of their homes/offices would ease the administrative burden and lower the overall operational costs for small-to-medium enterprises. What’s more, it will enable real-time processing and gathering of data which makes project implementation and bidding easier.
Smart Contracts
Introducing smart contract technology in the construction industry will eliminate the need for physical follow-ups which are both inefficient and time-consuming. It will also increase accountability and dependability for all parties involved thanks to the increased transparency. What’s more, IoT sensors can double up as a data point for the smart contracts, which translates to fewer human errors and less resource redundancies.
In Closing
Construction is one of the most highly regulated industries employing players from a broad spectrum background. A blockchain-implemented ecosystem will do a lot to streamline and simplify workflow thus enhancing productivity.
References: Plan Radar, Digiteum, Embedded
