- Infrastructure and Administration Gap
The infrastructure and administration systems of construction are not fully prepared to adopt the Blockchain technology. They are still not capable enough for implementing crypto-technology in a way that its full potential is utilized. Remember that we are discussing the least digitized industry here; the industry where about 95 percent of the data produced is thrown away.
- Lack of Digitization
The current practices of the industry have made it quite evident that before we introduce Blockchain technology, we will have to build a suitable setting to accommodate it. For example, we really need to reconstruct the building processes and bring them closer to the needs of supply chain. If that happens, only then we will be able to introduce smart contracts as supportive measure, otherwise it will only be a waste of resources.
Is the construction Industry Ready for the Blockchain Technology?
The construction industry is often criticized for its resistance to change. A lot of research that has been carried out on this subject indicates that a bad mix of practical and cultural barriers is present in the industry that hinders change and discourages adoption of new technologies. Considering these facts, it’s quite possible that the potential impact of Blockchain on construction will be undermined. A major obstacle that holds back change is the sheer number of regulations that the governments has imposed on the industry. Similarly, there are several other issues that serve as a barrier between construction and change. Due to these reasons, the introduction of Blockchain technology in construction may not be as beneficial as we think.