Blockchain Technology Can Fight Against Corruption in the Construction Industry, Anagnost Believes
Andrew Anagnost, CEO of Autodesk, an American multinational software corporation that makes software for the architecture, engineering, construction, manufacturing, media, and entertainment industries reportedly said that blockchain technology can help the construction industry in fighting against corruption.
During the 2018 Autodesk University conference in Las Vegas, Mr. Anagnost showed his belief in the blockchain technology and its ability to end corruption in the construction industry as it can provide a safer and much trustworthy environment for carrying out processes. According to the report, Mr. Anagnost said:
What is blockchain good at? It’s a distributed, trusted ledger that cannot be altered and allows traceability and accountability. A technology like that in an environment like construction where various people involved in the process don’t trust each other is going to find some kind of application.
He explains the importance of blockchain technology and its use that can help provide a transparent image of what goes around in the construction industry. We know the capabilities of the blockchain technology and how it has revamped the world of trade providing a safe gateway for information sharing and carrying out transactions. So why not apply these abilities in an industry as big as this one? Where large projects are initiated with huge sums of money and involvement of way too many people.
As he gives his insights on the blockchain technology, the question rises that Autodesk itself has no inventions related to the blockchain technology and if the CEO of Autodesk speaks so highly the technology then why not implement it in the company’s own processes?
To this query, Mr. Anagnost replied satisfyingly;
Oh, we are. We just don’t have a point of view we have stated publicly.
Mr. Anagnost explains how he intends to apply the blockchain technology in his own systems but is not ready to make it public yet. Safe play, I must say but you might just have, sir.
To contribute in eliminating corruption from the construction industry, Autodesk is itself working on a non-blockchain digital “escrow” system. Following his contributions, Mr. Anagnost addressed the issue of corruption stating:
It makes it very difficult to track who is responsible for what, so one of the big technological problems we’re going to have to solve is making sure it is not optional to provide traceability and accountability.
As vast as the construction industry is, it truly is hard to identify the right culprit on the rise of an issue related to corruption. Due to the involvement of a lot of people on a single project, tracing data and holding people responsible for any fraudulent act are the major issues that are faced by the company, according to Mr. Anagnost. He further adds on the issue:
Corruption in the construction industry is not uncommon. When people are paying hundreds of millions of dollars on large projects, something is always happening somewhere that isn’t quite right. There’s always someone bleeding off resources or money in some inappropriate way.
Mr. Anagnost is assured on the fact that it is no hidden truth that inappropriate practices are very much common in the construction industry where heavy investments are involved,extensive resources are used and the involvement of numerous people pins down the note that somewhere, someone is always behind the corrupt activities and they are not just coincidences but they should be eliminated.
The need to introduce the blockchain technology in systems and processes has been internationally recognized by businesses and governments to stand against corruption and fraudulent activities like tax evasion. Spain is one of the countries that are already using blockchain in its systems to eliminate corruption and claims that blockchain technology is the right weapon to be used against such inappropriate activities.
Another nation already taking advantage from the abilities of the blockchain technology is China. Firms in China have introduced blockchain for record-keeping to avoid corruption and have developed digital invoices supported by the blockchain technology which provides more authentication and credibility in invoice issuance, traceable circulation, and efficient and cost-effective examination by the tax authorities.
Therefore, we can agree with Mr. Anagnost on how the introduction of blockchain technology can revolutionize the construction industry for the better good, providing a transparent and safer environment for processes to be carried out which can eradicate corrupt activities from the industry.
