In my most recent article for Construction Executive I discuss what blockchain is and explore how it can (and likely will) be used in the future to automate the performance and administration of construction contracts and how it could be used to automate legal notices. The possibilities are endless!
What is Blockchain?
At its core, a blockchain is a type of database that stores information in such a way that it is chronologically stamped and essentially impossible to alter. Data is gathered in “blocks” and once a block is full, nothing else can be added and it is “chained” to the most recently filled block. This database is then typically viewable by all the parties to the transaction so that at any time any party can confirm or verify the status or completeness of a given transaction.
How Does This Benefit the Construction Industry?
Most of the construction industry already uses some form of database for information and project management. Whether it is a simple spreadsheet or a more advanced project management or accounting system, those are all essentially databases that store information as it is added. In many instances data entered into the system can be updated or changed by anyone at any time. People are often required to review and make decisions about data being entered, which can slow down the process. In worst cases, the wrong decision can lead to additional costs, delays, or even breaches of a contract.