This article originally appeared on BUILDER’s sister site, Concrete Construction.
To the average layman, the words blockchain technology are practically synonymous with cryptocurrency and bitcoin – not that even above-average laypeople could likely pass a pop quiz on any of those terms. But Alpha Corporation Market Strategist Andrew Lindsey, who could write and grade that quiz, says it’s dangerous to confuse blockchain’s definition with its nefarious currency origins. And when he talks about blockchain’s promise for the AEC industry, he says he’s not just at the edge of his seat, he’s leaping out of it.
Since this spring, Andrew has been on the steering committee for the Construction Blockchain Consortium (CBC), an extension of the University College London, and thus the aforementioned seat from which he leaps is actually a front-row chair at the dramatic, disruptive performance of a lifetime: the collaborative convergence of new technologies, STEM leaders, policymakers and the built environment.
Andrew’s session at the Infrastructure Imperative conference Nov. 13-15 in Cleveland is titled, “How Rapidly Changing Technology is Impacting Infrastructure Design and Construction.” Our interview with him this week is but an opening prelude to the exciting, real-life tale that’s unfolding real-time in our industry.
Concrete Construction (CC): Would you mind breaking down blockchain to its simplest definition?
Andrew: It is a digital ledger of transactions between two or more parties that is immutable, tamper proof, decentralized and encrypted.
What you often see now in the era of digital communications, there is value exchange that is reflective of a value exchange happening outside of the digital landscape; by that I mean, if I make a trade on the stock market, that’s not actually the trade that’s happening – that’s a cue on a digital interface that tells a bank to make that trade.
That’s Web 2.0. And the people who hold the keys to that digital interface now control all the power. You’re seeing that with Google, with Facebook, Verizon. Whoever controls the flow of data and the information that comes from that data controls everything.
CC: How do you help people make the mental separation between blockchain and bitcoin?
Andrew: Using blockchain interchangeably with cryptocurrency and bitcoin is a very dangerous ground to play on. I say that because the original use for bitcoin was for nefarious purposes – so now there’s a thought association that comes with it, and that could be the reason why the technology is delayed. Decision-makers may see it as a deviance tool rather than a high-utility streamlining tool.
CC: So how exactly can blockchain improve streamlining for building and infrastructure projects?
Andrew: If you want to understand who holds what when and where, you can see a 30,000-foot view of everything that’s happened. It’s all time stamped, it can’t be touched, it can’t be broken into, and it’s irreversible. That’s the core basis for the technology, the jump off point for all the applications in construction.
In the first level, we’re likely to see the value exchange of the ‘handover’ specifically – handing you my design specs, for example.
One of the easiest ways for a claim to come up is over who held what when and who handed what over when. When you have a very clear snapshot on all of that information, you can see what would happen to claims. You’ll only be interpreting the why rather than the what, which is half the battle.
Also, if you also look at supply chain management, the flow of materials, that is really big. In construction management, if you look at the cost estimating, scheduling, or other project controls, whoever can see what is where best has the best service.
Right now, it’s done off a data spread sheet that says X is going to arrive here within this timeframe with this level of error … but, if you have an immediate, encrypted and immutable ledger of the flow of items, you can identify exactly what is going to be where, when and you can reflect that in things like your schedules, cost estimates and then more broadly in your phase engineering.
This could be the kicker: If I can tell you better information than a major corporation, give a 100 percent more accurate snapshot, well now you’ve given the keys to a completely different party.
What’s funny is that’s just Level 1 of this technology!
CC: Will you cover Levels 2, 3, and 4 at Infrastructure Imperative?
Andrew: Yes … when we get to 4, it’s a big but impactful pill to digest, which is exactly what this industry needs.
CC: What are the obstacles blocking blockchain adoption in this industry?
Andrew: It’s inevitable that it will be adopted – but there are five things that will slow it down:
- The first is technological innovation. To be able to use this technology at scale, there’s another level of technology needed. The real-time processing power isn’t there yet; but it’s coming.
- The second is the regulation side of things. It’s possible to use the technology independently but then the value is not there; the best case for using it is when everybody’s using it. Third is the market disruption – the inflexion point at which this takes hold. When people say yes, we have to switch over to our neighbor’s technology because they’re the ones that are feeding us financially. And that takes time.
- Third is the market disruption – the inflexion point at which this takes hold. When people say yes, we have to switch over to our neighbor’s technology because they’re the ones that are feeding us financially. And that takes time.
- The fourth is educational integration – people have to know how to use this thing if they’re going to be using it between parties.
- Finally, it’s just the social willingness. If people don’t want it they won’t use it.
With this technology, immediate returns don’t happen. For it to actually get traction, multiple parties will have to be committed to its use.
CC: Andrew’s not only passionate and articulate about blockchain’s potency within the built environment – he told us he’s eager to channel the synergies of technology, STEM research leaders, AEC industry leaders, and educators toward one specific problem: the $46 billion gap in U.S. educational infrastructure. He ultimately envisions easier accessibility to resources for all K-12 students. Today, Andrew and his mother, Kate Lindsey, CEO of Alpha Corporation, are focused on their newly created International Education Infrastructure Alliance.
Like blockchain itself, the future good of Andrew’s work is immutable. The opportunity to hear this inspiring thought leader in person should not be missed.
