Digital Building Twins and Blockchain for Performance-Based (Smart) Contracts

Abstract

Performance contracts used for servitized business models enable consideration of overall life-cycle costs rather than just production costs. However, practical implementation of performance contracts has been limited due to challenges with performance evaluation, accountability, and financial concepts. As a solution, this paper proposes the connection of the digital building twin with blockchain-based smart contracts to execute performance-based digital payments. First, we conceptualize a technical architecture to connect blockchain to digital building twins. The digital building twin stores and evaluates performance data in real-time while the blockchain ensures transparency and trusted execution of automatic performance evaluation and rewards through smart contracts. Next, we demonstrate the feasibility of both the concept and technical architecture by integrating the Ethereum blockchain with digital building models and sensors via the Siemens building twin platform. The resulting prototype is the first full-stack implementation of a performance-based smart contract in the built environment.

An analysis of blockchain technology and smart contracts for Building Information Modeling

“…Based on the conceptual frameworks, some studies took a step further to develop a working blockchain as a part of their research scope (Pradeep et al, 2021;Zhong et al, 2020). The highest level of blockchain-technology adoption examined the use of the developed prototype by using simulated project scenarios Fischer, 2021a, 2021b;Hunhevicz et al, 2022;Tao et al, 2021). Some of the studies in this category even utilized actual project data to properly validate the blockchain prototype.…”

“…The authors created three illustrative scenarios to validate the performance of the blockchain. Studies have also validated their technical architecture by testing their prototype on data from a realworld building or projects that have been implemented Fischer, 2021a, 2021b;Hunhevicz et al, 2022). So far, project scenarios have been an essential part of research to validate the prototype and prove the main contributions of the paper.…”

“…When collecting data from IoT sensors into the virtual representation of the physical project, the data can be stored in a more secure and transparent way. Performance evaluation of a facility can be made with contract details embedded, and through smart contracts reward payments to stakeholders may be executed automatically (Hunhevicz et al, 2022). This ensures the payment is made on time and based on a trustable source that is stored on the distributed ledger.…”

Digital Twin based built environment asset management services development

“…These technologies can support the construction sector innovation thanks to the effectiveness in the data management, reduction of uncertainty in the decision-making process and increased reliability of the service outcomes. Some examples of technologies supporting AECO are the use at different levels (e.g., design, construction and process management) of the Building Information Modelling (BIM) approaches [2]; the use of Augmented and Virtual Reality in design and construction [3]; the implementation of smart contracts for better building operations [4]; and the deployment Internet of Things (IoT) networks to enable smart buildings applications. More recently, these technologies and methods were conveyed under the broad DT concept.…”

Digital Twin Based Flexible Manufacturing System Modelling with Fuzzy Approach

“…As an example of these; Li et al focused to the digitization of physical resources and increasing production efficiency with a collaborative structure [1]. Jens et al analyzed the digital twin and block chain architecture together and made a performance analysis [2]. Zhou et al examined the flexible structure of decision support systems in digital twin systems [3].…”