Every new building should begin with a solid foundation, everyone knows that, but how the people who build those foundations are paid, may be changing dramatically as cryptocurrency continues to grow along with the technology it was built on.
Blockchain technology holds the potential to change how builders hire and pay subcontractors and suppliers, but the how of the technology is less important than why it is needed in the industry, says the founder of BuilderChain, a company setting out to drive some of that change, writes Allison Nagel for biznow.com.
Dan Bowden, who has decades of experience in the homebuilding space, has set out to bring blockchain technology — the use of distributed, secure information and validation through a public record or “ledger” — to companies looking to better streamline the process. That could mean getting the right subcontractors on a job quickly or expediting how those subcontractors or suppliers are paid. While he plans to start with small homebuilders, Bowden said the technology has potential to create a faster, better system for larger companies in both the residential space and in commercial real estate construction.
Blockchain is best known in conjunction with cryptocurrencies — it is the underlying technology for digital coin exchanges like bitcoin — but can be applied in many different ways. The first trick is encouraging the adoption of something new, which Bowden knows can be a challenge in the construction space.
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