Shubh Patni
Shubh Patni

Shubh Patni

Blockchain Finds Its Home In a $10 Trillion Industry

Blockchain can now have a real-world impact, tackling real-life problems

Shubh Patni's photo
Shubh Patni
·Nov 28, 2020·

6 min read

Blockchain Finds Its Home In a $10 Trillion Industry

A group of new and existing companies are working on AECROS. The result is a new industry called Auto-Construction.

Auto Construction will combine various existing technologies such as IoT, Blockchain, AI, Digital Twin, BIM to create a fully autonomous and most efficient construction method, never fathomable before.

This would not only revolutionize the construction industry — which is currently the least digitized industry — but will also make blockchain mainstream. Finally, Blockchain will find its most useful use case, after being a mere financial instrument for speculators for over a decade.

According to Economic Research Council: The global construction industry is expected to reach an estimated $10.5 trillion by 2023, and it is forecast to grow at a CAGR of 4.2% from 2018 to 2023.

Let’s discuss how everything will play out and why this is such a big deal.

Construction Side of Things

[MBU (Left), Other MBU Blocks For Different Needs (Right)](https://cdn.hashnode.com/res/hashnode/image/upload/v1627505366725/g6-Ev3OaV.html)MBU (Left), Other MBU Blocks For Different Needs (Right)

Because of its enormous size, need for digitization, and global presence, construction is one of those industries which requires disruption.

AECROS is developing Modular Building Units (MBU), which are customizable finished building blocks with embedded IoT sensors and civil requirements.

Design and Engineering of these blocks are simplified and perfected with the help of **Building Information Modelling (BIM) and [Finite Element Modelling](en.wikipedia.org/wiki/Finite_element_method..) (FEM)** — state-of-the-art technologies in construction. Customers can send their design requirements and specifications to the company to get the perfect product.

These standardized blocks are mass produced in factories and then transported to the site of construction. These blocks are self-complete.

The modularity of these blocks allows consumers to replace specific blocks, buy individual blocks, and reuse them or resell them rather than demolishing the building.

By nature, these building blocks provide the most efficient, cost-effective, and green way of construction. The re-use-a-block system allows for a phenomenon unheard of in construction, and this makes the process of building demolition extinct by a new process called deconstruction.

Rather than creating tonnes of waste through demolition, Block Members’ Superblocks can be deconstructed in the same way one would deconstruct a LEGO construct.

This amplifies the emphasis on green buildings while creating possibilities of relocating or reconfiguring a building layout. The entire life-cycle of a building from construction to demolition results in very little to no waste — previously unheard of in the industry.

The used blocks can be reused in developing areas where cost is a huge factor. These blocks can provide shelter to many in the time of calamity/disaster. The modularity of these blocks makes them suitable for various environments.

**(Video of the entire construction process)**

Role of Blockchain, AI, and IoT

Blockchain and IoT are the key ingredients in the whole recipe. With the help of IoT devices/sensors such as LoRa, Infrared, temperature sensors, MBU’s can be easily tracked and detect various calamities such as fire, hurricanes, and earthquakes. This will contribute to the building’s safety and monitor its health.

It might seem like it's a bit too much to put beacons in every block, but this is where blockchain and AI come in. Why Fintech Industry Needs To Leverage Blockchain - 6 Uses Cases of Blockchain | Data Driven… Blockchain is considered to be a revolutionary technology known for a decentralized database. Ever since it was…datadriveninvestor.com

With the help of these IoT sensors, individual blocks can be tracked, monitored, aid home automation, and collect invaluable information. This would enable builders to create **digital twins** of these blocks for further research, performance forecasting, and prevent calamities.

Digital twin device operates and lives throughout its life cycle) is a digital replica of a real world physical object. This physical object can be anything from a human being to a chair. The digital representation provides both the elements and the dynamics of how an Internet of things (IoT) device operates and lives throughout its life cycle.

Construction of buildings is one of the biggest investments a person makes in his lifetime. Traditional construction method requires dependence on multiple middlemen, consultants, partners, lawyers, contractors, and labor. On top of that, the entire process is very time-consuming because of issues in the supply chain, trust amongst stakeholders, lengthy contracts, and timely payments.

Let’s look at an example.

John wants to build a mansion. He consults a contractor who handles subcontractors, architects, labor, lawyers, and suppliers. Everything from brick and mortar to pipes and paint and hundreds of other things must be transported, coordinated, and recorded. Middlemen handle these jobs and overprice everything. After each stage of construction, such as foundation construction, payment must be done to all the workers. Payments like these are often delayed, which can break trust, delay construction, and increase the overall cost and time of the project.

This only gets more tiresome with the scale of the project.

Blockchain can solve these issues. The immutable and decentralized nature of blockchain provides trust, security, and authenticity at every stage of the process.

As soon as a Modular Building Unit is built, its digital twin: Monetized Building Unit is created. Monetized Building Unit is an ERC-20 token that you can buy, sell, rent, and resell from anywhere in the world.

ERC-20 tokens are tokens designed and used solely on the Ethereum platform. They follow a list of standards so that they can be shared, exchanged for other tokens, or transferred to a crypto-wallet.

Blockchain makes the ownership of the property much easier and allows parties from anywhere in the world to contribute. All the stakeholders can access the information available in the blockchain, thus the supply chain can be streamlined, which is the biggest issue in the construction business.

This allows anyone to backtrack the origin of the good, get details on the payment made at every step, and not rely on the middlemen.

It is common in the industry to delay payments which can lead to mistrust, slow down the process, and increase the overall cost of construction. With the use of smart contracts, payments can be made automatically on the completion of tasks.

A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.

There is more to it than just construction. The technology and machinery being developed can be used in many other industries and for other sorts of work.

There is another ERC-20 token called Membership Placeholder (MP), which can be used for wider purposes. AECROS stands for Architecture Engineering Construction Real Estate/Finance Operating System.

This means that owning an MP is owning membership in the industry. This would give you access to housing, block trading, home purchases, and later access to data networks and energy.

References & Resources

**(Project White paper)**

**(Technical Document) [Journey Home - Block Members* Block Members will be the drive for funding 'Auto-Construction' allowing everyone to purchase a stake in this new…*blockmembers.io](https://blockmembers.io/)

 
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