The Role of Blockchain Technology in Reducing Information Asymmetry and Enhancing Trust in Circular Construction

This paper explores the role of blockchain technology in reducing information asymmetry and improving trust in the context of circular construction. In the construction industry, especially when applying circular economy principles, many stakeholders suffer from lack of transparency and poor data sharing. This often causes mistrust and inefficient collaboration. Blockchain, as a decentralized and secure technology, can solve this problem by creating transparent, traceable, and immutable records of material flows, contracts, and processes. However, there is a lack of scientific evidence in understanding the blockchain’s role in building trust and reducing information asymmetry in circular construction. This study reviews recent literature where the blockchain is applied to circular construction, finds the current gaps, and proposes future directions for research on this topic. It identifies critical technical, organizational, and legal barriers while outlining a clear pathway for overcoming them. By addressing these challenges, the blockchain can evolve into a central enabler of circular, sustainable, and trustworthy construction, offering a decisive reference point for guiding adoption, standardization, and industry-wide implementation.