Blockchain technology for governmental supervision of construction work: Learning from digital currency electronic payment systems

Lu, W; Wu, L; Zhao, R; Li, X and Xue, F (2021) Blockchain technology for governmental supervision of construction work: Learning from digital currency electronic payment systems. Journal of Construction Engineering and Management, 147(10): 02148, ISSN 0733-9364

Abstract

Blockchain technology has been explored for governmental supervision of construction work (GSCW) due to its merits of traceability, immutability, and transparency. However, its decentralized nature is seemingly incompatible with GSCW, which is a type of centralized governance per se. This research aims to find a network topology with a proper level of (de)centralization and, based on this topology, to develop a blockchain-based model for GSCW. First, a literature review is conducted to identify problems in GSCW. Then, a cross-sectoral learning is performed between GSCW and digital currency electronic payment systems. Next, a design science research method is adopted to develop a dual-layer blockchain-based GSCW model integrated with an incentive mechanism. Finally, the model is illustrated in Hyperledger Fabric and its strengths and weaknesses evaluated. It was found that the model can enable an information-sharing, tamper-proof, and privacy-preserving mechanism without affecting the current status and routines of GSCW units and project teams. The model developed in our study can serve as a valuable reference for policymakers, practitioners, and researchers to develop governance policies or blockchain applications.

Item Type: Article
Uncontrolled Keywords: blockchain; central governance; construction supervision; digital currency electronic payment; dual-layer blockchain network
Index terms: topology, routine, practitioner, blockchain, traceability, project team, supervision, literature review, transparency, design science research, construction work, governance, privacy
Subjects: data analysis and analytics, sociology, practitioner, computing systems, design practice, control systems, professional development, operations management, business, geometry and topology, project delivery, professional ethics, supplier oversight
Topics: Organizational Design, Roles and Professions, Supply Chain Management, Project Management, Legal Issues, Information Management, Governance, Research Practice, Digital Applications, Design Practice
Descriptive scope: 4 PCTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here