Will Blockchain completely change the construction and installation sector?
Blockchain is the new hype. Trendwatchers predict that the impact will be as big as the arrival of the internet. But what is it? And what impact does it have on the construction and installation sector?
Let's assume that blockchain is especially about transparency. Then I can think of some consequences for our industry, as in an average construction project hundreds of parties are directly involved. In this article, in addition to a brief explanation of blockchain, some concrete examples for the sector.
What is blockchain?
Blockchain automates everything traditionally controlling or trusting a third party, such as a bank or notary. The most famous example of blockchain is the digital currency bitcoin.
How it works? Perhaps you ever had a bookshelf as a subject. Blockchain is comparable to a digital ledger. No one can ever delete or change information. Only a rule can be added. By using math and secretary in an open database. That open database creates a copy of (part of) the database on all computers of the people who work with it. Information is therefore no longer available in one instance. This makes fraud more difficult because you have to put information on many computers.
Why would you like that? In addition to this fraud, handling transactions now often takes time and money. Blockchain is faster, cheaper and more reliable. How much time has your organization lost in processing operations in systems? Much happens manually. With blockchain much can be done automatically. And you know immediately where your data comes from and that the information is correct. That saves a lot of hours. Imagine the approval of all of the calculation rules with blockchain. Please say goodbye to complex committees and experts who do a pool every time. Is that the end of the work of the consultants or maybe the beginning?
Also, with blockchain, you have dated evidence for all knowledge as a kind of patent. How would that change the world? Think of innovations that are now secretly kept secret but can mean a lot. And the boost that it can give to science.
Experiment in Rotterdam
The municipality of Rotterdam is working with CIC and Deloitte to experiment for the digital recording of rental contracts in blockchain. Startups thus conclude lease contracts faster and easier. Capturing legally binding contracts is a first step toward the more efficient and transparent management of real estate. The next step is to monitor the rent payments. With a broad application in the real estate sector, transactions can be realized in less time and at significantly lower transaction costs. Future investment decisions on buying, selling and new building data management can also take place.
In a breath of smart contracts
Blockchain is also often called in one breath with smart contracts. A smart contract (smart agreement) is a programmed agreement that is written in a programming language and executes itself.
An example of how that can work. Suppose a corporation offers 50 euros for the repair of a broken door handle. Vakwerker Piet wants to do that for that money. Blockchain is programmed so that when Piet accepts, the transaction is executing itself. Possibly with an intermediate step that the tenant approves first. Piet immediately receives his money immediately. Turns out that for those 50 euros soon it was registered, then it's 45 euros next time. If it lasts longer then the weather is screwed up. You get dynamic pricing based on supply and demand. Think about how many people make this corporation unnecessary. For the payment of the assignment, the price negotiations etc. And what does it mean for the tenant satisfaction? This whole process can take place in seconds. The tenant may, if desired, give a judgment on Piet's quality and that judgment determines whether he can do such a job again next time.
Transparent for everyone
Startups as Provenance work on techniques to capture the way of a product and make it completely transparent to everyone - including the end user. By whom, from where and when are the different parts delivered and assembled. And then preferably to the level of a single unit. The speed of movement, temperatures, moisture, name it. Everything is being followed. Useful for example on liability issues, but also to gain reliable insight into the footprint and ethical issues.
With blockchain, you can also organize fully automated checkout models. KYP is software that organizes building processes. Parties enter, do their work, when done, it is approved by the following and so on. Thanks to automatic access controls on the building, you also know exactly who, for how long, at what construction site. And that without an exporter.
You can go one step further and pay lots immediately when their work is approved by the following. The same goes for suppliers. Once the materials are accepted at the building site, they will be paid. Nobody has to wait for money and nobody is dependent on satisfied customers for the entire project. Everyone gets paid for a little thing by little. That complete transparency also ensures that you can develop whole new insurance models and remove many risks (and therefore margins) from the chain.
The right people
The biggest challenge is whether we can find enough people in the short term with knowledge of cryptography that also have a great dose of abstraction to overcome the consequences. People who translate contract agreements into a programming language, for example. It may all sound much easier, but someone must program that slimness.
The whole world will be no different tomorrow. Step by step we go that way. The most important thing is that we think - purely from the customer's mind - what would contribute to better products and services for less money.
What is now really worthwhile for the customer? Suppose a customer wants an extension. Then, for him, the whole process of drawing, licensing, logistics and building is not of value. Only the result. If you reason so, blockchain can cause major change.
Think about it. Keep an eye on my items . And look critically at your business. In other words. No reason for panic, but especially for an open visor.