A blockchain-based adaptable framework for achieving construction supply chain information authentication, integrity, and timeliness (AIT)

Abstract

The construction industry heavily depends on efficient supply chain management (SCM) for timely project completion, quality outcomes, and budget control. Information management (IM) is key to construction SCM. However, effective IM is often hindered by the large number of parties involved, who are dispersed in different geographic locations. Moreover, the principal-agent problem exacerbates these challenges, where conflicting interests and information asymmetry can lead to three classic conundrums in managing construction information: falsification, tampering, and untimely delivery.

To address these challenges, this study explores blockchain, an emerging technology characterized by decentralization, immutability, and traceability. Blockchain offers a unique value proposition to break down the principal-agent problem by providing transparent, immutable, and real-time ledgers that improve the timeliness and reliability of information flow. However, blockchain can only protect information on-chain, not off-chain. There is an urgent need for a theoretical framework that integrates blockchain and other technologies to ensure authentication, integrity, and timeliness (AIT) of information in SCM. We notice, on the other hand, that existing information protection practices, such as watermarking and signatures, can help handle information off-chain and ensure effective management from information generation.

The overall aim of this research is to propose a blockchain-based framework adaptable to address AIT challenges. Specifically, there are four objectives: 1) understanding the persistent IM problems in construction SCM; 2) establishing a blockchain-based adaptive framework for information AIT; 3) implementing the framework into a system prototype; and 4) evaluating the performance in terms of safeguarding AIT and exploring its implications for wider industrial operations.

Four research stages are designed to achieve research objectives. Initially, literature review, archival and field research are adopted to identify persistent IM problems within construction SCM. The second stage establishes a blockchain-based framework for achieving construction supply chain information AIT using the design science research (DSR) method. The third stage implements a system prototype through DSR to instantiate the framework. Leveraging the case study method, the fourth stage evaluates performance and explores broader industrial implications.

The results show that the framework ensures information AIT by providing four assurance mechanisms, i.e., (i) watermark or signature-enhanced oracles, (ii) cross-validation with public data, (iii) cross-validation between oracles, and (iv) blockchain incentives. Multiple mechanisms work together to protect AIT to provide reliability. The framework demonstrates its adaptability to various information types and requirements for scalability, control, etc.

This research makes significant contributions by integrating blockchain with digital watermarking and signatures to enhance information AIT in construction SCM. Theoretically, it provides a blockchain-based framework that addresses information asymmetry through a combination of incentive-based, monitoring, and cooperative mechanisms. Technically, it introduces novel schemes for watermarking and signing various construction information and reduces the “oracle problem” by adding security layers. Practically, the framework’s adaptability is validated in real-world scenarios, offering a flexible tool for construction professionals.

This study faces limitations such as the inability to fully prevent source corruption, interoperability challenges among diverse oracles, and privacy risks from increasing oracle numbers. Future research should address these gaps and investigate more effective combinations of monetary and non-monetary incentives.