The Blockchain promises to revolutionize the transaction data and values. But how this process may affect the segment of Engineering and Construction? Understand more about it in our article.

Although always be aligned with the new features and technology, fundamental solutions to its operational front, Construction and Engineering segment has never succeeded in making this involvement more strategic. Not that there were no attempts or even interest, but the return was never expected. However, everything is changing with blockchain.

Created in 2009, the blockchain is gaining more supporters in various industries, mainly in the Finance and Real Estate, present in processes like bookkeeping and real estate transactions. This is because it has proven to be a tool that provides agility and security to the process that is applied.

However, the question is: what blockchain's relationship with the segment of Construction and Engineering?

The first point is that the blockchain emerges as a modern solution for information security. With it integrated the stages of the process, the team involved is replaced by a thorough overview, updated and encrypted information of a project.

The second point is directly involved with productivity. After all, the relationship of the construction segment with productivity never was, say, exemplary, at least compared to other segments.

according to a study of McKinsey made in 2017, productivity growth of the construction industry, the past 20 years, falls far short of the growth seen both in the Manufacturing industry as to the global economy.

And why safety and productivity are as important anchors?

Well, it's because situations like these (the delay in the execution of a work or the lack of adequate supervision) only discredit the Civil Construction segment's potential, Affecting its employees and direct suppliers (such as Engineering and Project companies).

Moreover, it is not today hanging over the industry some suspicion, because sometimes that illicit financial problems are not rare in a work place, especially in the public sphere.

So it's no exaggeration to say that reverse these metrics and change the work culture It is one of the major objectives of the Civil Construction segment.

It's the block chain You can help in this process.

What is Blockchain?

From a technical point of view, the blockchain may sound a bit complicated. However, your goal is simple: decentralize the process and make the information exchanged safer.

The blockchain is a database of records and information about a project (or market, or currency, as the case of Bitcoin) highly secured through encryptionSeeking to make any transaction (whether values ​​or information) in a direct process between the parties involved, Precluding the need for an intermediary.

In a practical example, we Bitcoin mentioned above.

The whole logic of this is that cryptocurrency, plus 100% digital, your transaction takes place directly from one party to the other, without the need of a traditional bank intermediating movement.

So the blockchain can ensure a secure transaction, fully traceable and transparent, whether public or private.

The Blockchain public x private Blockchain

An extra point is worth commenting on is the difference between public and private blockchains. These two types are often generate doubts about their definitions, applications and uses.

In the case of public blockchain, wallets are open to any user. Therefore, all participants can download the chain blocks and are used as a reference in the mining process. In public blockchains, users can freely read the information, be part of the consensus and conduct transactions. The biggest example is the bitcoin.

In the case of private blockchain, the chain of portfolios is restricted, limited to a group. Its rules and its control are set by a company or a group of them, also to permit the entry of new users.

As the blockchain can be applied in the processes of Engineering and Construction?

The blockchain ensures more security audit of the information and can just act in process "truncated", as the verification of actual deliveries versus what was signed in the contract, for example. Its decentralized and highly secure feature brings greater organization in the flow of information and control of a project, facilitating monitoring and analysis work.

Experts have add this technology in the implementation of key points, integrating them with existing platforms. Below, we address some of them. Check out:

Management processes and surveillance revolution: a new way to interact and to manage engineering documents

With blockchain, functions like processes management gain more autonomy, dynamism e safety.

The technology allows, for example, stakeholders from the same project monitor in real time any changes or approval made in a document of a work.

These changes are recorded in a database, containing information such as date, time and responsible.

Thus, it is possible prevent fraud, increase the confidence of the parties involved and also enable error tracing directly at its source. O MIT Press Journal destaca (On page 10) the pioneering work in this field of Constructive, innovating processes such as supervision of registration and management with use of blockchain.

Smartcontracts: the management of future contracts

One of the major problems of Construction is in the contracts. Many see them the loopholes to commit illegal actions involving values, for example. Therefore, the need for greater clarity and security is urgent.

So, with the addition of blockchain technology to management contracts, came the smartcontracts.

Through them, you can automate the processes involving a contract.

In a work, for example, consider that there is a clause specifying that the payment will be made only when the construction finished his part. With blockchain, you can track and identify the completion of the work and trigger the clause, releasing the payment. All automatically, in real time and without the intermediary of persons.

Information on the progress, completion and other work details would be integrated into the blockchain platform by reading smart sensors, located close or even in place.

A right arm to make BIM more efficient

BIM (Building Information Modeling) is a virtual modeling tool works and buildings. It offers a deep soaking about every aspect of a project, from the smallest to the largest components.

With blockchain and use of intelligent sensors that perform the reading of the progress of the work, it is possible to obtain accurate data of each part of a work.

Thus, there is a faithful integration between physical work and its digital model. This enables the stakeholders monitor the work assertive mode, measuring productivity at every stage.

The blockchain applied to the construction and engineering processes only benefit the segment. Transparency, traceability, reliability of all parts and real-time monitoring are part of a promising reality for those working in construction.

And if you want to meet a Brazilian tool that provides engineering and construction management solutions with blockchain technology, know Collaborative. A collaboration tool, the software concept as a service (SAS), to management processes that pioneered the use of this technology.

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2 thoughts on “The Blockchain in Construction and Engineering: Understand the impacts

  1. Hello!!!
    I would like information about Construtivo's Blockchain solution.

    Is there a trial version ?? How can I get material to study and understand this solution ???

    Thank you.

    1. Dear José Ricardo,

      Grato pelo contato e interesse por nossa solução de registro/auditoria em blockchain. Ela foi inicialmente desenvolvida para ser utilizada em conjunto com nossa solução de gestão de projetos e obras, a plataforma Colaborativo. O objetivo é permitir uma auditoria 100% confiável e independente da plataforma, garantir a independência do sistema em caso de consórcios e onde dados do sistema são utilizados de forma direta na gestão contratual (medições, bônus e multas). Nasceu para o mercado de infraestrutura, especialmente para o mercado de energia. Trata-se de uma solução baseada em padrão aberto e no conceito de blockchain permissionário. O conceito de blockchain permissionário é muito combatido em função da falta de segurança, justamente pelo pequeno número de carteiras, mas para o caso de obras é uma característica ótima, pois a distribuição das carteiras entre os stakeholders gera o controle e ao mesmo tempo garante a segurança e sigilo que são necessários.

      Currently the scope goes beyond the Collaborative data storage, it is possible to store data from other sources that are also related to the project, such as ERP reports or financial transactions. Unfortunately there is no demo version, as the solution is tailor-made and adapted on a case-by-case basis through web services.

      Attached paper that mentions our application for the engineering sector - https://www.mitpressjournals.org/doi/pdf/10.1162/inov_a_00267

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