Is the construction Industry Ready for the Blockchain Technology?
Is the construction Industry Ready for the Blockchain Technology?
The construction industry is often criticized for its resistance to change. A lot of research that has been carried out on this subject indicates that a bad mix of practical and cultural barriers is present in the industry that hinders change and discourages adoption of new technologies. Considering these facts, it’s quite possible that the potential impact of Blockchain on construction will be undermined. A major obstacle that holds back change is the sheer number of regulations that the governments has imposed on the industry. Similarly, there are several other issues that serve as a barrier between construction and change. Due to these reasons, the introduction of Blockchain technology in construction may not be as beneficial as we think.
    Here are a few major issues that the construction industry will have to overcome in order to reap the benefits of Blockchain technology:
      • Infrastructure and Administration Gap The infrastructure and administration systems of construction are not fully prepared to adopt the Blockchain technology. They are still not capable enough for implementing crypto-technology in a way that its full potential is utilized. Remember that we are discussing the least digitized industry here; the industry where about 95 percent of the data produced is thrown away.
          The companies still find it more convenient to continue with their traditional methods without realizing the long term benefits of the new technology. Lack of investment in technological innovations, structural fragmentation, and limited collaboration are few issues in the construction industry that are underestimated. If not addressed timely, these issues may pose a serious threat to the future of construction.
          • Lack of Digitization The current practices of the industry have made it quite evident that before we introduce Blockchain technology, we will have to build a suitable setting to accommodate it. For example, we really need to reconstruct the building processes and bring them closer to the needs of supply chain. If that happens, only then we will be able to introduce smart contracts as supportive measure, otherwise it will only be a waste of resources.
              Similarly, in order to use Bitcoin or any other established cryptocurrency it is important to create a smart contract. To make this happen, the companies would need data derived by a real-time project management software, a checklist application for inspection, and a drone for monitoring and certifying that the building is being constructed as its 3D design. With all these problems being present, it is evident that for an all-inclusive implementation of Blockchain technology in the construction industry, we first need to heavily invest in technological innovations. When the industry will become sufficiently digitized, only then Blockchain will be beneficial for it.
                We should remember that all industries are different from one another. The fact that Blockchain technology has been successfully implemented in other industries such as E-Sports and accounting does not necessarily mean that it will be the same for construction industry. This statement can become stronger if we take some of the advantages like data-driven decision making and real-time project updates etc. that Blockchain technology is providing into consideration. It is because these advantages can be acquired through other construction software as well. In that sense, Blockchain isn’t really necessary for construction industry.
                  Blockchain technology is undoubtedly an incredible technology regardless of the industries in which it is implemented. When it comes to construction, there is no doubt that this technology could help the industry improve its processes through bitcoin and smart contracts. However, it’s important to consider whether the construction companies are ready to adopt crypto-technology and whether it is really that necessary for the industry.