Construction industry also known as Real estate sector is one of the major sectors in economic context. Every nation has its own construction industry; it is a high investment intensive industry. At the same time it is also a most corrupted sector due to its high investment intensive nature.
It is very easy to do corruption in this sector as compared to other sectors for many people it is a money making sector. In country like India, Brazil, china and so on, if you ask which sector is suitable for corruption then the most frequent answer will be Real estate sector. At every step of construction whether you are constructing a building or resort, supply of money and material should not get stopped.
Therefore, from Indian context emergence of Blockchain in construction industry will change the dynamics of Real estate sector in many ways.
To be precise emergence of Blockchain will revolutionize the Real estate sector.
Let’s understand about Blockchain
Blockchain is the kind of innovation that offers backing to advanced monetary standards like Bitcoin, Ethereum, and so on. It records the information in blocks and dispersed it in all systems connected with blockchain.
This dispersed data is typically put away in squares and not possessed by any single individual. Each and every square has a cryptographic hash of the prior square, alongside timestap and exchange information.
Now come to the point how block chain impact the construction industry. In many ways it impacts the construction industry. Let me explain how
1. Blockchain helps in reducing corruption
It is a major impact; Blockchain will make on Real estate sector if integrated properly. The integration of Blockchain technology with Real estate sector will make it more accountable.
It will make the construction industry accountable by digitalizing the payment supply and data between the subcontractors who are working on the sites. As everyone knows Blockchain supports the use of digital currencies.
Ultimately when contractors and workers make payments in digital currencies then every digital payment or transaction get recorded and can be tracked easily.
In previous mode of payment such as cash manipulation in cost off construction materials, equipment’s, labour, etc. is happened quite easily.
The reason behind this there is no one to keep an eye on them neither the conclusive evidence regarding payment and transaction was available even if it’s available it gets destroyed or lost easily.
While doing transaction with digital currencies even if the record of transaction gets lost it can be recovered quickly. We can say that if integration of Blockchain will be accepted, then we can reduce the level of corruption to a greater extent.
2. It promotes sustainable construction
This is also the major impact of Blockchain technology will made on construction industry. It will promote sustainable construction means the construction takes place without the overutilization of resources.
A single construction project consumes large percentage of natural resources.
The sustainable construction will encourage quality, productivity and resource saving. It is not like that only the criticisers of construction industry are urging for sustainable construction but also the professional like engineers, architects, etc. who are working in the industry or related with it is looking for options to add sustainability in this sector.
Apart from blockchain technology there are also other technologies available to make the construction industry sustainable like AR/VR, 3D printing, IOT robotics and so on but they are not being getting utilized efficiently.
Other important benefits of Blockchain technology in construction industry
- In Blockchain data get stored in blocks so a single block has the capacity to make an authentic and historical record of exchange data. Also allowing information and data to be stored and shared with everybody in the network. This way risk of permanent loss of data get eliminated because data is in digital format can be recovered from more than one source.
- Blockchain technology promotes shared exchanges, trust-based cooperation and Transferring the administration from focal organizations to circulated systems of distributed effort of P2P (peer to peer) alliance.
- Since every blockchain has a particular structure and standards making it significantly a more unique as compared to a common database. It promotes transparency in real estate sector as accessed to facts and figures become possible.
By going through above-mentioned points, we can say that Role of Blockchain becomes very crucial for the growth and advancement of construction industry.
Although, the problem is that the Blockchain technology has not been used commonly or adopted by the Real estate professionals worldwide.
The reason behind this is that people don’t understand about how to properly utilize Blockchain technology. So, more awareness should be disseminated regarding the Blockchain technology to the Real estate stake holders. This is all about Blockchain in construction industry, to know more about anything else kindly comment below. Till then get in touch with us for more updates.