۱- Introduction

۲- Research methodology

۳- Technologies behind blockchain

۴- Blockchain architecture

۵- Salient features of blockchain

۶- Drivers, barriers and risks in blockchain

۷- Applications of blockchain

۸- Conclusions

References

Abstract

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.

Introduction

Blockchain is considered a potential disrupter of the status core in the commercial sector innovating in transactions, revolutionising industries and driving economic change on a global scale. Blockchain technology is predicted to completely overhaul the digital economy [1]. Blockchains attracted attention from various industries such as finance, insurance, logistics, energy and transportation in experimenting its applications [2]. Though blockchain is a potent disruptor in different industries, it is important to understand whether this is just hype or real when applied to real-life problems. This paper is aimed at critically analysing whether blockchain is pure hype or whether there is credible application potential in the construction industry. The 4th industrial revolution (Industry 4.0), follows Industry 1.0 (water and steam power), Industry 2.0 (electricity) and Industry 3.0 (internet, electronic devices). It is characterised by the seamless integration of cyber-physical environments propelled by an array of technologies that enable the development of a digital and automated industry as well as the digitisation of the value chain [3-5]. Blockchain follows the egalitarian ideologies of the modern society where equality, direct dealing, openness, consensus and mutual trust play a vital role. Sikorski, et al. [6] states that blockchain technology has the potential to revolutionise the engineering industry by changing its production and procurement methodologies. A recent global report by McKinsey ranked the construction industry as the second lowest sector to have adopted information technology during Industry 3.0 [7]. Hence, there lies the conundrum, whether blockchain will create just hype or real disruption in construction, similar to the digital revolution that is taking hold in other industries.