In recent years, blockchain has increasingly been involving discussions of digitalization, innovation, and the modernization of traditional industries. In practice, however, the real use of blockchain in the construction sector remains quite limited. Often, the term is used in contexts that do not involve authentic implementation but rather aim to create the impression of digital transformation – a phenomenon increasingly common, known as digital washing.

Even so, it is worth analyzing the potential of this technology in a complex industry such as construction. With numerous stakeholders, complex contracts, complicated approval workflows, and a large volume of information, this sector is one where transparency and automation could deliver significant benefits.

One of the most promising tools developed in blockchain technology is smart contract. Essentially, a smart contract is a set of coded rules that automatically execute when predetermined conditions are met. In a construction project, these conditions might include, for example, completing a particular stage of work, delivering materials, or issuing a permit. Once the condition is verified and validated (either manually or through an integrated digital system), the corresponding action – such as releasing a payment tranche — is executed automatically, without the need for human intervention or additional approvals.

An analysis conducted by Autodesk on the applicability of blockchain technology in construction shows that it has the potential to create a “single source of truth” for all parties involved in a project. Information is no longer fragmented across multiple databases, spreadsheets, or platforms. Still, it is instead recorded on a distributed ledger that is immutable and verifiable by anyone who has access to it. Moreover, all changes and updates are recorded chronologically, making the auditing process simpler and more secure.

The benefits of blockchain have also been analyzed in the supply chain. According to an analysis published by Building Radar, full traceability of materials – from their point of origin to their actual use on the construction site – can be achieved by recording each stage on the blockchain. This not only improves quality control but also reduces risks related to fraud, theft, or the use of non-compliant materials.

In addition, a relevant example of blockchain application in practice is the Hitachi Electronic Signature Service project, developed by Hitachi, which can guarantee the authenticity of documents and facilitate integration between digital systems through APIs or biometric mechanisms, opening relevant perspectives for the construction industry as well.

Although specific international examples show that blockchain can bring greater transparency and control to construction projects, the widespread adoption of this technology remains difficult. As highlighted by Bernard Marr, a globally recognized expert in the intelligent use of data and artificial intelligence in business, in his analysis of this technology’s limitations, many of blockchain’s fundamental challenges become even more evident in industries where processes are already sensitive, slow, or difficult to standardize.

The first obstacle is technological complexity. Blockchain requires advanced expertise in distributed ledgers, cryptography, and consensus mechanisms, making it a complex solution to implement in a field where basic digitalization is still developing. In the absence of a robust digital infrastructure, the risk of costly, inefficient implementations is high.

Added to this is the issue of scalability. Blockchain networks slow down as transaction volume increases, and construction projects involve a high volume of approvals, updates, and verifications. A technology that loses speed when heavily used cannot sustain the pace of a complex project.

The fragmentation of blockchain ecosystems represents another major obstacle. Existing platforms are not standardized and do not communicate with one another. In an industry with numerous stakeholders – designers, suppliers, contractors, authorities – the lack of interoperability makes it impossible to establish a unified data flow.

Finally, high costs and security risks limit adoption. The required infrastructure, specialized maintenance needs, and potential vulnerabilities in smart contract implementation make blockchain an investment difficult to justify for most companies.

All of this explains why, despite numerous promises and studies, blockchain remains a technology that is rarely used in practice. In the absence of clear conditions for application, the term often ends up being used merely declaratively to suggest innovation – a phenomenon increasingly recognized as digital washing.

In this context, although blockchain has the potential to bring transparency, automation, and safety to the construction industry, Ubitech specialists believe that its large-scale implementation in Romania is unlikely, at least for now.