Blockchain in construction

2021: Blockchain platform for construction industry launched in Russia

On November 8, 2021, it was announced the launch of a platform Russia blockchain for the construction industry. " Orlan System It was developed by Orlan together Alfa Bank with and. S7 Techlab More. here

2018: Blockchain will remove corruption in construction - Autodesk

In November 2018, at a conference at Autodesk University in Las Vegas, CEO, Should Andrew Anagnost, stated that blockchain technology could put an end to corruption in the construction industry. He said that the company is considering the integration of the blockchain into its software, but has not officially announced this yet.

What's a good blockchain? This is a distributed reliable registry that cannot be changed and which allows you to track and take into account events, Anagnost argues. - In the construction field, where different people are involved in the process, who do not trust each other, technology like this can be useful.

The company is also working on a digital escrow system to increase confidence in the construction industry. True, Anagnost warned that this development will not be built on the basis of the blockchain. At the same time, the corporation is still considering blockchain for its future developments.

Andrew Anagnost said blockchain technology could end corruption in the construction industry

It is very difficult to track who is responsible and what, and this is one of the largest technological problems that we need to solve. Corruption in construction is common. When people allocate hundreds of millions of dollars to big projects, something somewhere always goes wrong as planned. There is always someone who somehow lowers resources or money for the wrong purpose, "said the head of Autodesk.

But, according to Anagnost, there is a more significant problem in the way of introducing blockchain in the industry. Individuals who do not want clear records to be kept about who, what, when and how they did can interfere with the implementation of the project.

I was on construction sites, and I was with quality specialists. […] And sometimes I noticed that they registered some problems, and some did not. Therefore, I asked why they did not note, for example, this moment. "Oh, because I know this guy, I'll tell him about it." So the subcontractor he knows won't get a problem report, but the subcontractor he doesn't. […] This happens constantly, and it is very difficult to control who is responsible for what. Therefore, one of the most significant technological problems that we have to solve is to make sure that transparency and reporting are not something optional, "Anagnost concluded.[1][2]

He suggests that companies use blockchain  and pay attention to smart contracts and identification systems based on  a distributed registry.

In the code of such a smart contract, the logic of financing construction can be described. For example, after part of the building is completed, the blockchain sends a signal to the bank, which automatically transfers the next tranche of funds to the contractor from the escrow account.

In addition, this will avoid unnecessary links in the chain: professional intermediaries who control the development processes, that is, the developers themselves and construction managers. In this case, the community itself, auditors and curators will be responsible for the construction and delivery of the house according to the standards. Also, the buyer will not incur costs in the form of construction delays and other hidden costs.

As for the use of blockchain to combat corruption, opinions on this matter have been repeatedly heard. It was previously proposed in the Bahamas to combat corruption by introducing blockchain into the work of government bodies. In Denmark, the use of new technology was considered as an opportunity to combat abuse with humanitarian assistance.

In mid-October, World Bank President Jim Yong Kim  drew attention  to the usefulness of using the blockchain to combat corruption and poverty, as well as to improve well-being in general.

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