Applications of Tokenization in the Architecture, Engineering, and Construction (AEC) Industry
Publication: Construction Research Congress 2024
ABSTRACT
The architecture, engineering, and construction (AEC) industry is widely known for being fragmented. In this situation, blockchain technology has been introduced as a promising solution to bring trust and transparency to the industry. As blockchain technology continues to evolve, it has embraced new capabilities and features, including Fungible-Tokens (FTs) and Non-Fungible Tokens (NFTs), which have recently drawn significant attention in various industries. Tokenization can be seen as a next-generation solution to address challenges in the AEC. However, the application of tokenization for the AEC industry has remained undeveloped. To address this gap, this study provides an overview of tokenization, followed by an investigation of its applications in the AEC industry using a literature review method. By illustrating a clear outlook of the potential advantages and challenges, the study helps to set realistic expectations over the potential improvement that tokenization can bring. This can also serve as a fundamental source for further investigation by researchers and practitioners.
Get full access to this article
View all available purchase options and get full access to this chapter.
REFERENCES
Assaf, S. A., and Al-Hejji, S. (2006). Causes of delay in large construction projects. International Journal of Project Management, 24(4), 349–357. https://doi.org/10.1016/J.IJPROMAN.2005.11.010.
Atlam, H. F., Alenezi, A., Alassafi, M. O., and Wills, G. B. (2018). Blockchain with Internet of Things: Benefits, challenges, and future directions. International Journal of Intelligent Systems and Applications, 10(6), 40–48. https://doi.org/10.5815/IJISA.2018.06.05.
Azhar, S. (2011). Building Information Modeling (BIM): Trends, Benefits, Risks, and Challenges for the AEC Industry. Leadership and Management in Engineering, 11(3), 241–252. https://doi.org/10.1061/(ASCE)LM.1943-5630.0000127.
Bakis, N., Aouad, G., and Kagioglou, M. (2007). Towards distributed product data sharing environments — Progress so far and future challenges. Automation in Construction, 16(5), 586–595. https://doi.org/10.1016/J.AUTCON.2006.10.002.
Bal, M., and Ner, C. (2019). NFTracer: A Non-Fungible Token Tracking Proof-of-Concept Using Hyperledger Fabric. https://doi.org/10.48550/arxiv.1905.04795.
Cong, L. W., Li, Y., and Wang, N. (2021). Tokenomics: Dynamic Adoption and Valuation. The Review of Financial Studies, 34(3), 1105–1155. https://doi.org/10.1093/RFS/HHAA089.
Connolly, G. (2021). Overcoming the obstacles to implementing blockchain technology. Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2021/09/29/overcoming-the-obstacles-to-implementing-blockchain-technology/?sh=618dbcb5d0ea.
Euler, T. (2018, January 18). The Token Classification Framework: A multi-dimensional tool for understanding and classifying crypto tokens. – Untitled INC. Untitled. https://www.untitled-inc.com/the-token-classification-framework-a-multi-dimensional-tool-for-understanding-and-classifying-crypto-tokens/.
Euromoney. (2023). Blockchain Explained: How does a transaction get into the blockchain? | Euromoney Learning. Euromoney. https://www.euromoney.com/learning/blockchain-explained/how-transactions-get-into-the-blockchain.
Finma. (2018). Guidelines for Enquiries Regarding the Regulatory Framework for Initial Coin Offerings (ICOs). Scientific Research Publishing, Inc. https://www.finma.ch/en/~/media/finma/dokumente/dokumentencenter/myfinma/1bewilligung/fintech/wegleitung-ico.pdf.
Freni, P., Ferro, E., and Moncada, R. (2020). Tokenization and Blockchain Tokens Classification: A morphological framework. Proceedings - IEEE Symposium on Computers and Communications, 2020-July. https://doi.org/10.1109/ISCC50000.2020.9219709.
Guo, B. H. W., Yiu, T. W., andGonzález, V. A. (2015). Identifying behaviour patterns of construction safety using system archetypes. Accident Analysis and Prevention, 80, 125–141. https://doi.org/10.1016/j.aap.2015.04.008.
Hamledari, H., and Fischer, M. (2021). Construction payment automation using blockchain-enabled smart contracts and robotic reality capture technologies. Automation in Construction, 132(September), 103926. https://doi.org/10.1016/j.autcon.2021.103926.
Han, D., Zhang, C., Ping, J., and Yan, Z. (2020). Smart contract architecture for decentralized energy trading and management based on blockchains. Energy, 199, 117417. https://doi.org/10.1016/J.ENERGY.2020.117417.
Jaffar, N., Abdul Tharim, A. H., and Shuib, M. N. (2011). Factors of Conflict in Construction Industry: A Literature Review. Procedia Engineering, 20, 193–202. https://doi.org/10.1016/J.PROENG.2011.11.156.
Jiao, Y., Wang, Y., Zhang, S., Li, Y., Yang, B., and Yuan, L. (2013). A cloud approach to unified lifecycle data management in architecture, engineering, construction and facilities management: Integrating BIMs and SNS. Advanced Engineering Informatics, 27(2), 173–188. https://doi.org/10.1016/j.aei.2012.11.006.
Lee, D., Lee, S. H., Masoud, N., Krishnan, M. S., and Li, V. C. (2021). Integrated digital twin and blockchain framework to support accountable information sharing in construction projects. Automation in Construction, 127, 103688--. https://doi.org/10.1016/j.autcon.2021.103688.
Li, J., Greenwood, D., and Kassem, M. (2019). Blockchain in the built environment and construction industry: A systematic review, conceptual models and practical use cases. Automation in Construction, 102(February), 288–307. https://doi.org/10.1016/j.autcon.2019.02.005.
Little, W. (2017). A Primer on Blockchains, Protocols, and Token Sales. HackerNoon. https://medium.com/hackernoon/a-primer-on-blockchains-protocols-and-token-sales-9ebe117b5759.
Liu, S., Xie, B., Tivendal, L., and Liu, C. (2015). Critical Barriers to BIM Implementation in the AEC Industry. International Journal of Marketing Studies, 7(6), 162. https://doi.org/10.5539/IJMS.V7N6P162.
Naderi, H., Shojaei, A., and Ly, R. (2023). Autonomous construction safety incentive mechanism using blockchain-enabled tokens and vision-based techniques. Automation in Construction, 153, 104959. https://doi.org/10.1016/J.AUTCON.2023.104959.
Nofer, M., Gomber, P., Hinz, O., and Schiereck, D. (2017). Blockchain. Business & Information Systems Engineering 2017 59:3, 59(3), 183–187. https://doi.org/10.1007/S12599-017-0467-3.
Oesterreich, T. D., and Teuteberg, F. (2016). Understanding the implications of digitisation and automation in the context of Industry 4.0: A triangulation approach and elements of a research agenda for the construction industry. Computers in Industry, 83, 121–139. https://doi.org/10.1016/J.COMPIND.2016.09.006.
Oliveira, L., Bauer, I., Zavolokina, L., and Schwabe, G. (2018). To token or not to token: Tools for understanding blockchain tokens. International Conference on Information Systems 2018, ICIS 2018, December.
Perera, S., Nanayakkara, S., Rodrigo, M. N. N., Senaratne, S., and Weinand, R. (2020). Blockchain technology: Is it hype or real in the construction industry? Journal of Industrial Information Integration, 17, 100125. https://doi.org/10.1016/j.jii.2020.100125.
Pérez-Sánchez, J. C., Mora-García, R. T., Pérez-Sánchez, V. R., and Piedecausa-García, B. (2017). From cad to BIM: A new way to understand architecture. WIT Transactions on the Built Environment, 169, 45–54. https://doi.org/10.2495/BIM170051.
Pilkington, M. (2016). Blockchain technology: Principles and applications. In Research Handbooks on Digital Transformations (pp. 225–253). Edward Elgar Publishing Ltd. https://doi.org/10.4337/9781784717766.00019.
Scott, D. J., Broyd, T., and Ma, L. (2021). Exploratory literature review of blockchain in the construction industry. Automation in Construction, 132(September), 103914. https://doi.org/10.1016/j.autcon.2021.103914.
Shojaei, A., Flood, I., Moud, H. I., Hatami, M., and Zhang, X. (2019). An Implementation of Smart Contracts by Integrating BIM and Blockchain. Advances in Intelligent Systems and Computing, 1070, 519–527. https://doi.org/10.1007/978-3-030-32523-7_36.
Stapleton, J., and Poore, R. S. (2011). Tokenization and Other Methods of Security for Cardholder Data. Http://Dx.Doi.Org/10.1080/19393555.2011.560923, 20(2), 91–99. https://doi.org/10.1080/19393555.2011.560923.
Turk, Ž., and Klinc, R. (2017). Potentials of Blockchain Technology for Construction Management. Procedia Engineering, 196, 638–645. https://doi.org/10.1016/J.PROENG.2017.08.052.
Wang, Y., Singgih, M., Wang, J., and Rit, M. (2019). Making sense of blockchain technology: How will it transform supply chains? International Journal of Production Economics, 211, 221–236. https://doi.org/10.1016/J.IJPE.2019.02.002.
Wang, Z., Wang, T., Hu, H., Gong, J., Ren, X., and Xiao, Q. (2020). Blockchain-based framework for improving supply chain traceability and information sharing in precast construction. Automation in Construction, 111, 103063. https://doi.org/10.1016/J.AUTCON.2019.103063.
Wu, H., Zhong, B., Li, H., Chi, H.-L., and Wang, Y. (2022). On-site safety inspection of tower cranes: A blockchain-enabled conceptual framework. Safety Science, 153(May), 105815. https://doi.org/10.1016/j.ssci.2022.105815.
Yongfang, J., Lin, L., Khatri-Chhetri, A., Sapkota, T. B., Sander, B. O., Tian, Y., Minchin, R. E., Petersen, C., Moayed, E., and Adriaens, P. (2022). Financing Public-Private Partnership Infrastructure Projects through Tokenization-enabled Project Finance on Blockchain. IOP Conference Series: Materials Science and Engineering, 1218(1), 012027. https://doi.org/10.1088/1757-899X/1218/1/012027.
Zetzsche, D. A., Arner, D. W., and Buckley, R. P. (2020). Decentralized Finance. Journal of Financial Regulation, 6(2), 172–203. https://doi.org/10.1093/JFR/FJAA010.
Information & Authors
Information
Published In
Construction Research Congress 2024
Pages: 269 - 278
History
Published online: Mar 18, 2024
ASCE Technical Topics:
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.