Blockchain definitions
‘Blockchain – feasibility and opportunity assessment’, was published by the BRE Trust February 2018. It explores opportunities to address challenges in the built environment industry using blockchain technology.
The report includes the following Blockchain definitions:
Block – the key difference between a DLT (distributed ledger technology) and a blockchain is the block. These chronological blocks contain information regarding transactions as well as a timestamp, the previous blocks hash, and information about the algorithm required to mine the block.
Blockchain – a form of distributed ledger technology that consolidates numerous transactions, as identified by their cryptographic number, in a block, that is then added to the chronological chain of blocks via a hash on the distributed ledger through the mining process.
Distributed Ledger – a chronological, transparent, digital record of transactions and information that, instead of being held in a centralised database, is distributed across a diverse network of nodes.
Hash – a hash is the output of a one-way hash function that packages inputs into an output of a specific size and format. This process ensures information is translated into a manageable size that also prevents the input information from being seen; further establishing the trustless element of DLTs and blockchains.
Mining – this is the term given to the computational effort required to solve an algorithm, creating the next block to be added to the chain.
Node – the distributed system is made up of nodes that each independently validate transactions on the blockchain.
Private Blockchain/DLT – permissions are controlled by a trusted organisation. This organisation can control whether users can or cannot have various levels of access to the information, who can add to it and what transactions are permitted. This allows for a far quicker system that is reliant on trust.
Private Consortium Blockchain/DLT – a type of private blockchain that allows a number of predetermined nodes to participate in the verification and transaction process. This is a hybrid between private and public blockchain, creating a partially decentralised blockchain.
Proof of work – the proof of work concept both deters cyberattack and creates value. This is achieved through the need for nodes to define an expensive computational problem; a process called mining. This process requires computational power, which translates into energy. In rewarding the node/miner that computes this the fastest, value is created.
Proof of stake – in contrast to proof of work the creator of new blocks is not determined through mining, rather the creator is determined based on ‘wealth’, or stake. There is no reward (as all coins/tokens are created from the outset), and a computational problem is still required to be solved, however transaction fees are required, providing incentive.
Public Blockchain/DLT – a decentralised blockchain that can be added to and read by anyone. Permissions are shared equally by all users of the network, creating a completely trustless system.
Tokens – the representation of the tradable ‘goods’ being used within that blockchain. This includes, but is not exclusive to, currency, information, points, certificates etc. Also see Non-fungible token NFT.
Trustless – in removing the requirement for a ‘trusted’ third party (a single centralised control that oversees transactions between peers), blockchains are able to create a decentralised system that does not require trust. Instead, self-executing peer-to-peer transactions are carried out that are recorded and verified by the whole system, therefore removing the need for one trusted body
[edit] Related articles on Designing Buildings Wiki
- BRE articles on Designing Buildings Wiki.
- Blockchain – feasibility and opportunity assessment.
- Blockchain could transform the construction industry.
- Blockchain technology in the construction industry.
- Blockchains will change construction.
- Construction innovation.
- Eliminating waste at scale – opportunities for blockchain.
- Is disruptive innovation possible in the construction industry?
- Non-fungible token NFT.
- Student projects released as non-fungible tokens.
- Unprecedented innovation and new technologies on the horizon.
Featured articles and news
In major support package for small businesses.
Conservation and transformation
Reading Ruskin’s cultural heritage. Book review.
Renovating Union Chain Bridge.
AI tools for planning, design, construction and management
A long, continually expanding list, any more to add?
Robots in the construction industry
From cultural characterisations to construction sites.
Empowering construction with AI integration
New horizons with a human touch.
Key AI related terms to be aware of
With explanations from the UK government.
A Better Hiring Toolkit for construction
Tooling up to hire under best practice standards in the sector.
Recharging Electrical Skills in Wales
Step by step collaborative solutions.
Ireland budget announcement 2025
CIOB responds with positivity, criticism and clarity.
The continued ISG fall out, where to go?
Support for ISG contractors, companies and employees.
New HES national centre for traditional building retrofit
Announced as HES publishes survey results which reveal strong support for retrofit.
Retrofit of Buildings, a CIOB Technical Publication
Expected to become one of the largest activities in the global construction industry.
Scope determination appeals and the Building Safety Act
Process explained following release of appeals guidance.
The ECA industry focus video channel
Keeping update with the industry session by session.
Over 25 recorded informations sessions freely available..