Blockchain and cryptocurrency are both revolutionary pieces of innovation that have helped digital currency achieve its growing popularity. However, both advancements have gone beyond their initial purpose, helping business sectors improve their processes. Learn how blockchain and crypto help multiple industries, specifically the construction industry.
4 Areas in Construction That Should Leverage Blockchain
Blockchain technology has the potential to bring significant benefits to the construction industry by improving transparency, accountability, and efficiency in various aspects of the construction process. Here are specific ways blockchain can help the construction industry.
1. Contract management
Contract management is essential to any business, especially in large-scale projects requiring coordination between multiple parties. In the construction industry, it can be challenging to keep track of different parties who are part of a project and even harder to ensure they’re following through on their commitments.
The use of blockchain technology in contract management is an excellent solution for this issue because it’s a secure way to store and share information with other parties.
Blockchain makes it simple to track all relevant data, including each entity’s progress or updates. Besides giving everyone access to the same information, blockchain ensures no one can alter or remove anything without permission from everyone else involved.
2. Supply chain management
Supply chain management is one of the most useful blockchain applications in the construction industry. In this process, a product or its raw materials go through each production stage. It then ends up at its final destination with all relevant information attached to it, including proof of origin and other documentation.
Blockchain helps eliminates problems like fraud or mislabeled products and ensures you know where your supplies came from and how recent their production was. Additionally, blockchain lets you help cut down on waste by tracking material usage at every production stage.
3. Project management
The most obvious way blockchain can help improve project management is by making it easier to track progress. Blockchains are public ledgers that record all actions so you can see each team member’s activities at any time.
With all information in one consolidated source, it is much easier to monitor how things are going, who is responsible for what task and when, and what to do next. Another benefit of using blockchain is that it’s easier for people from different teams working together on a project to communicate with each other.
Since everyone involved in the process knows who they should contact when they need something or have an issue to discuss, there’s no more guesswork about who is responsible for a particular task and its status. Blockchain ensures everyone in the project is in the loop.
4. Compliance
Blockchain is a digital ledger that can record transactions between parties efficiently and transparently. In the case of construction, you can use the ledger to record everything from supplies ordered to permits received, making it easier for contractors and regulators to verify that the project fulfilled all regulations.
This transparency prevents you from committing lapses as you try to comply with industry and authority standards in your construction projects.
The Significance of Blockchain for the Construction Industry
Blockchain and cryptocurrencies are still relatively new. However, their impact is undeniable, and even industries outside the digital currency sphere are taking notice. Blockchain and crypto provide many benefits like security, efficiency, and more. These technologies can make significant contributions to expediting various processes within the construction industry.