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The construction industry continues to grapple with persistently high accident rates and fragmented workforce management systems, where manual record-keeping and siloed data impede effective safety compliance. While digital interventions exist, they often rely on centralized databases that are vulnerable to manipulation and opaque. This systematic literature review critically examines the application of blockchain technology as a decentralized infrastructure for enhancing safety compliance in construction. Adhering to the PRISMA 2020 guidelines, this study synthesizes findings from 115 peer-reviewed articles (2020–2025) retrieved from Scopus, Web of Science, IEEE Xplore, and Google Scholar. The analysis focuses on three core mechanisms: (1) the creation of immutable, timestamped safety logs to prevent retroactive data tampering; (2) the integration of IoT sensors for real-time, trustless hazard monitoring; and (3) the deployment of smart contracts to automate compliance verification and incentive distribution. The review juxtaposes theoretical frameworks with empirical evidence from global case studies, including pilot projects in North America and the Asia-Pacific, to quantify benefits such as reduced reporting latency and improved data integrity. Despite promising results, the analysis reveals significant barriers to widespread adoption, notably the “oracle problem,” scalability limitations of consensus protocols, and the lack of legal recognition for blockchain records. This paper concludes that while blockchain is not a panacea, it offers a necessary layer of trust and accountability absent in traditional Common Data Environments (CDEs). Future research directions are proposed to address interoperability with BIM standards (ISO 19650) and to develop energy-efficient consensus mechanisms suitable for resource-constrained construction sites.