In essence, blockchain can enable a registry and a sequence of smart contracts that are all traceable and almost impossible to manipulate because of the distributed nature of the infrastructure.
“In the construction context, it could well represent a paradigm shift by unlocking immense efficiency in aspects such as contract processing and payments, as well as supply chain management,” says Skudder.
Smart contracts represent a fundamental shift for the industry. “Automated contracts reduce the necessity for intermediaries, who would have to be paid. The system of smart contracts, built into the blockchain, will automatically enforce the rules such as regulations, deliverables or penalties. Besides the efficiency, the real-time nature means discrepancies or anomalies will be flagged much earlier and disputes resolved faster,” says Skudder.