A major challenge in the construction industry is to streamline productivity by taking advantage of cutting-edge technology. The advent of cryptocurrencies offers numerous opportunities to revolutionise this sector, but how can companies identify and benefit from these opportunities?
What is blockchain?
Basically, blockchain is a digital ledger that can store chronological information such as contracts or transactions. The recorded data is distributed across a computer network rather than being kept in a single location and can be accessed by a defined set of users.
Blockchain is best known as the technology that underpins Bitcoin; however, its functions have multiple possible applications as a business tool. According to the BBC, its potential has already been recognised in a number of sectors, which could easily extend to construction.
For example, blockchain could provide a single location to store every transaction in a construction project. This information is secure on its network, can be viewed by all interested parties, and cannot be changed or deleted. This improves a process where every party has to maintain its own version of information, removing possible miscommunications, eliminating redundancy and enhancing both efficiency and transparency however large the project. If you are considering construction companies Manchester has many that can handle projects of all sizes.
Blockchain technology can effect change in the construction industry in several ways. Project management can be remodelled with smart contracts, enabling the automation of business tasks and processes that are always in line with contractual agreements and considerably lowering margins. Payment systems can increase transparency for all parties, reducing delayed payments and potential disputes and improving cash flow.
Procurement can also be transformed, using accountability and predictability to drive an increase in product quality and a decrease in waste. By combining a single valid source of information with technology such as BIM, companies such as Piggott and Whitfield Manchester construction company and specialists in engineering and design services can streamline a complex project and support efficient, cost-effective delivery.
Although it has been around for a decade, blockchain technology is a new concept for the construction sector and there will be initial challenges to overcome. As construction is one of the world’s biggest industries and plays a vital role in economic growth, it is important to meet these challenges and pioneer a digital revolution that keeps up with 21st-century innovations.