Blockchain Technology for Governmental Supervision of Construction Work: Learning from Digital Currency Electronic Payment Systems

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.