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Blockchain Technology: Is it Hype or Real in the Construction Industry?
فناوری بلاکچین: آیا اعتیاد به مواد مخدر در صنعت ساخت و ساز واقعی است؟-2020 The dawn of the 21st century has seen the advent of many technologies targeting commercial
and financial sectors. These include Big Data, Internet of Things and FinTechs such as
blockchain. Blockchain is a type of a distributed database that is used to replicate, share, and
synchronise data spread across different geographical locations such as multiple sites,
countries, or organisations. The main property of blockchain is that there is no central
administrator or centralised data storage mechanism. Consensus algorithms govern the peerto-
peer decentralised network. Numerous benefits and applications of blockchains have
resulted in it becoming popular among a broad spectrum of businesses, but is it the case in the
construction industry? Given, the backward nature of the construction industry in
digitalisation and its reticence to change it becomes important to analyse the potential impact
of Blockchains as a potential disruptive technology.
Although there exists a significant research gap and the potential possibility to test
blockchain in the construction sector, the construction industry is historically reported as the
second lowest sector to have adopted information technology. This leads to a conundrum
whether blockchain is a pure technological hype or whether there is a real potential
application in construction. The paper is aimed at critically analysing the application potential
of blockchains in construction through a use case analysis and comprehensive literature
review to resolve whether it is pure hype or real. The exploration revealed that due to the
exponential uses of blockchain, investments involved, and a number of start-up businesses
contributing to Industry 4.0, blockchain indeed has a credible potential in the construction
industry. Keywords: Blockchain | Smart Contracts | Blockchain Applications | Construction Industry | Industry 4.0 | Digitalisation |
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