Blockchain ecosystems for empowering Small/Medium Enterprises

Abstract

This presentation introduces the rationale for blockchain applications in construction to address persistent trust and diversity issues. On one hand side, construction is a project-based, fragmented and transaction-heavy sector lacking trust. On the other hand side, blockchain is a transparent layer for immutable transactions, called the ‘internet of trust’. As blockchain relates to open-source code and value co-creation from community members has potentially meaningful links to open innovation paradigm.

Through a global study, different types of blockchain innovation ecosystems were identified according to base technologies (open, hybrid, closed). As the relationships among the ecosystem members co-evolve, the coordination of the blockchain innovation ecosystems resides with different orchestrators. Small and Medium Enterprises (SMEs) in the supply chain are deemed more visible in open and hybrid formations and hence more included in relevant project and initiatives. The blockchain initiatives were seen as empowering of SMEs and small industry players through greater visibility, transparency and commercial opportunities. For blockchain initiatives, consortia and contractors (or asset owners) were seen as open and closed ecosystem orchestrators respectively. This also revealed the important role for policy-makers to legitimise blockchain technology.