A framework for smart construction contracts using BIM and blockchain

Poor payment practices are perceived as one of the biggest challenges facing the construction industry. Since payments are issued according to project contract terms, the project's cash flow is inherently affected by the contract and how parties fulfill their obligations. This research proposes a framework for payment automation in construction projects to achieve smart construction contracts. Payments are automatically issued upon satisfying contract conditions using blockchain. Cryptocurrency is proposed to be utilized in the framework to execute the contract terms with no need for a third party to process project payments. 5D BIM is used to model the geometry of buildings and visualize project progress together with payment status using Autodesk Revit, Navisworks, and Primavera P6. The developed framework has the potential to reduce the consequences of poor payments. An actual case study for a construction project in Cairo, Egypt is worked out to demonstrate the main features of the proposed framework. The results of the case study reveal that project cash flow is secured and payments are instantly issued. Moreover, electronic records of payments are kept on the blockchain.

Blockchain-smart contracts for sustainable project performance: bibliometric and content analyses

Blockchain-smart contracts have emerged as a new value proposition in improving certain aspects of sustainability in projects. However, there is little knowledge on how smart contracts can be leveraged to stimulate sustainable project performance from the integrated perspective. This study aims to capture the latest research development and applications of smart contracts for sustainable outcomes throughout the project lifecycle. Bibliometric and content analyses were conducted to critically review smart contracts and sustainable project performance. The results show that various new applications of smart contracts for sustainability have become more popular in the architecture, engineering, construction, and operation (AECO) industry. A smart contracts-sustainable project performance framework has been developed to fill up the research gaps for improving each dimension of sustainability and the integrated dimensions of sustainability during the project lifecycle. This study renders important implications for promoting sustainable project performance in the context of the engineering, construction, and operation industry, particularly for the required interdisciplinary research and practice in smart contracts.

The Flash Loan Attack Analysis (FAA) Framework—A Case Study of the Warp Finance Exploitation

Decentralized finance (DeFi) has exploded in popularity with a billion-dollar market cap. While uncollateralized lending, known as a flash loan, emerged from DeFi, it has become a primary tool used by attackers to drain investment tokens from DeFi networks. The existing countermeasures seem practical, but no comprehensive quantitative analysis framework was available to test them. This paper proposes the Flash loan Attack Analysis (FAA) framework, which aids security practitioners in understanding the DeFi system’s effects on preventative methods when various factors change. The quantitative predictions can help security professionals in identifying hidden dangers and more efficiently adopting countermeasure strategies. The simulation predicts that the existing strategy, fair reserves, can fully protect the platform in a typical market environment; however, in a highly volatile market where the token price drops by 60% in a single hour, it will be broken, causing more than $8 million in damage.

Blockchained Industry Information Handoff Based on Internet of Things Devices with Intelligent Customized Object Recognition

To determine the quality and safety of each product used in manufacturing, the exchange of measured data between machines, operators, production lines, and manufacturing companies is crucial. In this study, we developed a system with customized object recognition capability for the secure blockchain-based transfer of industry information through Internet of Things (IoT) devices. In the proposed system, product history data are transferred through blockchains through artificial intelligence (AI)-based object recognition. Individual objects are recognized and represented using a unique number sequence for use as a private key on a blockchain. The data history can be automatically secured, and all the data are traceable and trackable. The reliability and validity of the proposed system were verified using the Jetson Nano Developer Kit. The proposed AI-based system is a low-cost embedded system. Based on the open-source cloud computing platform, the required computing resources for blockchain computing and storage are available. In an experiment, the proposed system achieved >99% accuracy within 1 s. Furthermore, the computational cost of the proposed system was 10% that of traditional AI systems. The proposed device can be rapidly connected to IoT devices that require limited manual operation and can be adopted in manufacturing and production lines.

Exploring the Barriers against Using Cryptocurrencies in Managing Construction Supply Chain Processes

Various stakeholders are involved in managing supply chain processes in construction. Suppliers can hardly tolerate upfront costs when faced with flaws in the payment pipeline. This is a serious problem in building construction that uses a large variety of materials as opposed to civil construction that requires fewer types of materials. Alternative secure payment systems are needed, and the use of cryptocurrencies can be an option. However, cryptocurrencies are seldom used in building construction projects due to several challenges that are mostly ignored in the existing literature. To fill this gap, this study investigates the use of cryptocurrencies in construction supply chains as an alternative payment solution to improve the financial performance of the stakeholders by taking advantage of this economical and traceable financial transaction system. The study involves exploratory, descriptive, and empirical survey research. Accordingly, a literature review, focus group discussions, and statistical analyses (Friedman test, Wilcoxon test, and Mann–Whitney U test) were performed. The results imply that a lack of technical knowledge about cryptocurrencies, fluctuations in the value of cryptocurrencies, limited market opportunities, security gaps, personal information required by cryptocurrency systems, no assurance of permanent use, and government actions limiting the use of cryptocurrencies were the most significant barriers against using cryptocurrencies in construction supply chain management. The findings are expected to provide critical information to construction professionals and regulatory agencies about the potential advantages and shortcomings of cryptocurrencies, hence motivating policymakers to create strategies that minimize the concerns of construction professionals about using cryptocurrencies in the building construction industry.

Blockchain-Based Trusted Property Transactions in the Built Environment: Development of an Incubation-Ready Prototype

Blockchain can be introduced to use cases in the built environment where reliability of transaction records is paramount. Blockchain facilitates decentralised, cryptographically secure, trustworthy, and immutable recordkeeping of transactions. However, more research is urgently required to understand the process and complications in implementing blockchain solutions in the built environment. This paper demonstrates a methodology for developing a blockchain system starting from problem analysis, selection of blockchain platform, system modelling, prototype development, and evaluation. The evolutionary prototyping model was selected as the software development methodology for the use case of property transactions. A systematic process protocol involving the multi-criteria decision-making method, Simple Multi Attribute Rating Technique (SMART), was used to select Hyperledger Fabric as the most suitable blockchain platform for the prototype. The system architecture facilitates a simplified, lean property transaction process implemented through chaincode (smart contract) algorithms and graphical user interfaces. System evaluation through test cases allowed iterative improvements, leading to an incubation-ready software prototype. The contribution to knowledge of this paper is in the demonstration of the process to follow to implement a blockchain solution for a specific domain. The findings provide the foundation for developing proofs of concept for other potential applications of blockchain in the built environment.

Modifying the Unified Theory of Acceptance and Use of Technology (UTAUT) Model for the Digital Transformation of the Construction Industry from the User Perspective

Inefficient and ineffective practices in the construction industry have hindered productivity even though it is considered as one of the largest sectors in any county. One best solution to overcome these inherent problems in the construction industry is to move forward with digital technologies. For that, organizational structure, technical aspects, and, most importantly, human factors need to be considered. The aim of this research is to find out human behaviors that affect the digital transformation of the construction industry based on the well-accepted model Unified Theory of Acceptance and Use of Technology (UTAUT). An in-depth literature review was carried out using fifty-five journal papers to develop a conceptual model for the acceptance of digital transformation, and it was validated and further reviewed using ten expert interviews. The model consists of seven constraints: Personal Benefits, Perceived Usefulness, Perceived Risk, Facility Conditions, Attitudes, and Subjective Norms. The analytical hierarchy process (AHP) was carried out to rank these seven factors according to individual priorities in the construction industry. Further, the model was extended and modified using factors derived from literature review and expert feedback. It is proved that “Perceived Personal Benefits” is the major consideration of an individual who is willing to move towards digital transformation. This research fulfills the lack of knowledge in the digitalization of the construction industry as per a human perspective, and it provides a prerequisite to finding the solutions for the issues which emerged within the industry towards digitalization. Further, the framework developed in the research can be used to systematically adopt the human factor for the digital transformation of the construction industry. In addition, this enables the analysis of changing demands for humans in digitally transformed environments, such as Industry 4.0 environments, and contributes towards a successful digital transformation that avoids the pitfalls of innovation performed without attention to human factors. The paper concludes by highlighting future research directions on the human factor in digital transformation as well as managerial implications for successful application in practice.

The Quality Control System of Green Composite Wind Turbine Blade Supply Chain Based on Blockchain Technology

Nowadays, blockchain technology is expected to promote the quality control of traditional industry due to its traceability, transparency and non-tampering characteristics. Although blockchain could offer the traditional industry new energy, there are still some predictable difficulties in the early stage of its application, such as the structure of the blockchain-based system, the role of regulators in the system and high transaction fee by block packing. In this paper, we establish a pioneering quality control system for the green composite wind turbine blade supply chain based on blockchain technology. Firstly, the framework of this system is proposed to ensure that the quality of the product could not only be examined and verified by regulator, but also be monitored by other related nodes. Next, we develop a new way to store the data by hash fingerprint and the cost of transaction fees is significantly reduced in the case of a large amount of data. Then, the information on-chain method is developed to realize the data traceability of each node. At last, the tests of this system are carried out to prove its validity, the satisfactory results are obtained and information supervision and sharing role of the regulators are discussed.