Green Chain Project: Blockchain technology for a Sustainable Management of Supply Chains in the Construction Industry

Published on September 5, 2022

In contrast to a world that lives the era of integration, transfer and interpretation of data and values almost simultaneously, the construction industry is the second least computerized industrial sector in the globe. Thus, concepts, such as Industry 4.0, Society 5.0, and Blockchain Technology, are yet to be fully adopted by the construction sector, bring relevant windows of opportunities for developers that understand the pains, desires and the complex context of this industry. The Green Chain Project aims to sole this real file problem: the lack of efficient, auditable and distributed systems to foster Circular Economy in the Construction & Demolition Industry (C&D industry). The major pains points to be addressed by the Green Chain Project are: (1) inefficient mechanisms for registration, trade and traceability of all construction systems used in a building; (2) the search for a decentralized system to promote the best results with the lowest possible cost, creating a favorable environment to flourish Circular Economy business opportunities. The aim of the project is to develop a platform that will connect, in a sustainable way, buyers, suppliers and waste managers, automatizing the quotation, trading and waste destination processes. It aims to guarantee trust, transparency and social responsibility, through the use of blockchain technology.

The platform will allow the registration and traceability of all construction systems used in a project. This will support the transformation of the buildings into banks of materials that can be reused after its disassembly, leading to higher levels of economic circularity of the C&D sector. So far, the project has carried out a systematic review of the literature, a process mapping through interviews and field observations and a proposal of framework. Algorithms for smart contracts are being developed to implement the model. The performance of the framework will be evaluated through simulation and quantitative and qualitative indicators. The project is still under development. Our vision is to have a MVP (Minimum Viable Product) developed, tested, improved and launched and to reach the one-year timeframe with at least 30 clients in the State of Bahia in Brazil (5 free trails and 25 first adopters). In a one-year picture we expect to have a solid performance indicators and apply for funding (i.e. venture capital, etc), in order to grow and expand to new markets.

This case study is directly related to the work of the OPN SBC programme.