One of the primary objectives of the current administration of the United States of America, is to renew the country’s infrastructure. They mainly talk about inland waterways, fundamental for the transport of basic necessities such as wheat, steel, coal, and oil products.
Recently, the blockchain technology has been introduced in the debate on infrastructure policies as one of the new crucial solutions.
In which way can the blockchain technology improve American infrastructures?
The Federal Government has already started to invest in possible applications of the blockchain technology, to streamline the infrastructure renewal process.
Last year, the State of Utah has approved the contract from Petroteq Energy, which integrates the blockchain in its operations.
Other companies that follow the same path are 360 Blockchain, BTL Group, Hive Blockchain Technologies and Marathon Patent Group.
The advantage of the blockchain lies in its decentralized and publicly distributed nature
Accounting transactions via digital currency, but also patents, or other physical objects, like buildings.
The blockchain also allows the fragmentation into small parts of the possession of material assets, making it easier to track down their owners.
The potential of the blockchain in the infrastructure field
Another great potential of this technology is that to open any kind of investment to the average user.
Example: a new toll bridge could be fully financed by individuals, who would receive a portion of the toll proportional to their investment.
At the moment, this type of public-private partnership (the so called PPP), are not yet available to individual citizens.
But when this will be possible, all citizens will be able to finance motorways, stadiums, parking lots and other kinds of infrastructures.
Relying on more local donors would also mean having more people interested in the evolution of the project, and a greater accountability.
In addition, local governments and building companies could use the blockchain to track purchased materials, permits and contracts.
The power of transparency
According to Andrew Lindsey, strategist for Alpha Corporation:
The blockchain makes it possible to have an immediate, encrypted and non-manipulable “ledger” of the flow of documents involved in the construction contract.
It would be possible, for example, to precisely identify where the materials are and when they will arrive. This would mean planning, cost estimates and, most generally, engineering process stages that will all be more precise.
And since the blockchain’s “ledger” would be accessible by everyone, the companies and officers responsible to the project wouldn’t be able to blame the delays on suppliers.
Those responsible for problems and delay in infrastructure projects, could be easily identified and called to respond.
Infrastructures are a fundamental field for the economic growth, but so far the United States use financial and construction processes that have not proven efficient.
The blockchain technology will not solve all problems, but it surely has the potential to make a big difference.