Blockchain Technology in Construction Supply Chain Management: Enhance Transaction Speed, Cost Effectiveness and Security

Abstract

The traditional construction sector encountered obstacles that prevented it from developing, including knowledge asymmetry, complicated intermediary relationships, and high transaction costs. Blockchain technology offered a more effective, secure, and convenient mode of transaction and management to the construction industry because it was a decentralized, safe, and reliable information transmission and management tool. Blockchain technology could be applied to the construction industry's supply chain to achieve traceability and supervision, enhancing the transparency and dependability of transactions. At the same time, blockchain technology could be applied to the management of the construction supply chain to achieve rapid information sharing and verification, lowering transaction costs, and increasing transaction efficiency. However, the previous study on the use of blockchain technology in the building sector was still in its infancy and required more investigation and study. This study aimed to investigate how blockchain technology could be used in supply chain management for the construction sector to address present issues. The study's goals were to examine how blockchain technology could speed up transactions and improve supply chain management for the construction industry, as well as to examine how it could lower transaction costs and increase data sharing and information transparency. This study used a semi-structured interviewing technique for the purpose of gathering and analysing data. The researcher learned more about professionals and industry experts' thoughts and experiences with blockchain technology in construction supply chain management through in-person or remote interviews with them. The advancement of the construction industry's digital transformation and information upgrading reflected the significance of this study. This study would help the supply chain management in the construction sector in enhancing the effectiveness of supply chain transactions in the construction industry and reducing the transaction cycle; lowering the price of supply chain transactions in the construction industry and boosting the industry's competitiveness; strengthening the security and reliability of supply chain transactions in the construction industry and reducing data compromise and transaction risks.