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Blockchain in Supply Chain

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 International Journal of Trend in Research and Development, Volume 12(2), ISSN: 2394-9333
www.ijtrd.com
Blockchain in Supply Chain
1
Matthew N. O. Sadiku, 2Samuel A. Ajayi and 3Janet O. Sadiku,
1
Roy G. Perry College of Engineering, Prairie View A&M University, Prairie View, TX, USA
2
Texas Southern University, Houston, TX, USA
3
Juliana King University, Houston, TX, USA

Abstract: Blockchain is a decentralized digital ledger for data from the different processing and transportation stages the
storing and recording transactions securely. It is a technology product went through. Blockchain technology is typically used
that securely records transactions—blocks—using multiple in supply chain management to create and share unique data
computers, which comprise the chain. Blockchain technology records among trade partners to increase transparency and
provides a secure and transparent way to record transactions visibility of information through the whole supply chain [2].
without the need for intermediaries or centralized control. In a
II. WHAT IS BLOCKCHAIN?
supply chain, blockchain technology acts as a decentralized,
transparent ledger that records every transaction and movement Blockchain, a type of distributed digital ledger
of goods, enabling real-time tracking, improved traceability, technology (DLT), is a relatively new and exciting way
and enhanced visibility for all participants throughout the of recording transactions in the digital age. It is a
supply chain. Blockchain enhances collaboration among decentralized and distributed digital ledger technology that
supply chain stakeholders, fostering a more sustainable and securely records and verifies transactions across multiple
ethical supply chain. In this paper, we will explore the computers or nodes in a network. Basically, it is a chain of
adoption of blockchain in supply chain and how blockchain blocks in which each block contains a list of transactions. The
technology can help improve its operations. symbol of a blockchain is depicted in Figure 2 [3].The
blockchain technology was created as the foundational basis
Keywords: Blockchain, Distributed Digital Ledger, Supply
for Bitcoin – a digital currency in which secure peer-to-peer
Chain, Supply Chain Management, SCM
transactions occur over the Internet. It is expected that the
I. INTRODUCTION spending on blockchain solutions worldwide would grow from
4.5 billion USD (2020) to an estimated value of 19 billion USD
A supply chain is typically composed of independent
by 2024 [4].
organizations which are directly involved in the upstream and
downstream flows of products, services, finances, and
information from a source to a customer. Supply chains
underpin the macroeconomy and global markets. Figure 1
shows what supply chain is really about [1]. As goods move
from one location to another, it can be challenging to track all
the transactions accurately within outdated supply chain
systems. This is where blockchain and supply chain
management meet to ensure transparency, the key success
metric. Blockchain is a technology with unique combination
of features such as decentralized structure, distributed notes
and storage mechanism, consensus algorithm, smart
contracting, and asymmetric encryption to ensure network
security, transparency, and visibility. Blockchain has immense Figure 2: The symbol of blockchain [3].
potential to transform supply chain (SC) functions.
Originally developed as the accounting method for the virtual
currency Bitcoin, Blockchains are appearing in a variety of
commercial applications today. Blockchain technology is a
type of distributed digital ledger that uses encryption to make
entries permanent and tamper-proof and can be programmed to
record financial transactions. It is used for secure transfer of
money, assets, and information via a computer network such as
Figure 1: What supply chain is really about [1]. the Internet without requiring a third-party intermediary. It is
Blockchain technology has recently gained importance as a now being adopted across financial and non-financial sectors.
promising technology in the area of supply chain management. As a catalyst for change, the Blockchain technology is going to
The core technology of the blockchain is the decentralized change the business world and financial matters in major ways.
ledger, which records and protects transaction data shared The first Blockchain was conceived in 2008 by an
among multiple parties. Blockchain may be used by supply anonymous person or group known as Satoshi Nakamoto, who
chain members to share demand, inventory, and capacity- published a white paper introducing the concept of a peer-to-
related data. A higher degree of coordination and operational peer electronic cash system he called Bitcoin [5,6]. Bitcoin
efficiency may be obtained through the implementation of and Ethereum are the first two mainstream blockchains. Other
blockchain enabled smart contracts to automate transactions modern blockchains include Namecoin, Peercoin, Ether, and
among supply chain members. The technology may also be Litecoin. Figure 3 shows different components of blockchain
used by supply chain members to share sustainability-related [7].
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Figure 3: Different components of blockchain [7].

Blockchain combines existing technologies such as
distributed digital ledgers, encryption, immutable records
management, asset tokenization and decentralized governance
to capture and record information that participants in a network
need to interact and transact. As illustrated in Figure 4, a
complete blockchain incorporates all the following five Figure 5: Bitcoin [9].
elements [8]:
 Distribution: Digital assets are distributed, not copied
or transferred. A protocol establishes a set of rules in
the form of distributed mathematical computations
that ensures the integrity of the data exchanged among
a large number of computing devises without going
though a trusted third party. A centralized
architecture presents several issues including a single
point of failure and problems of scalability.
 Encryption: BC uses technologies such as public and
private keys to record data securely and semi-
anonymously. Completed transactions are
cryptographically signed, time-stamped, and
sequentially added to the ledger.
 Immutability: The blockchain was designed so these
transactions are immutable, i.e. they cannot be Figure 6: How blockchain works [10].
deleted. No entity can modify the transaction records.
A blockchain is a tamper-proof, distributed database that
Thus, Blockchains are secure and meddle-free by
stores blocks of information for cryptographically bound
design. Data can be distributed, but not copied.
transactions via peer-to-peer networks. At the heart of
 Tokenization: Value is exchanged in the form of
blockchain’s functionality is cryptographic hashing. Each
tokens, which can represent a wide variety of asset
block in a blockchain contains a cryptographic hash of the
types, including monetary assets, units of data or user
previous block, creating an immutable chain of blocks. If
identities.
anyone attempts to tamper with the data in a block, it would
 Decentralization: No single entity controls a majority alter the block’s hash. This would disrupt the entire chain,
of the nodes or dictates the rules. A consensus making it virtually impossible to manipulate. The security
mechanism verifies and approves transactions, feature ensures data integrity and prevents unauthorized
eliminating the need for a central intermediary to changes [11].
govern the network.
In a nutshell, blockchain technology involves three basic
Bitcoin and its underlying blockchain technology increasingly concepts [12]: (1) It is a system for recording a series of data
impact all facets of society. Bitcoin’s status as digital gold is items (such as transactions between parties); (2) It uses
merely the tip of this technology. Figure 5 shows Bitcoin [9], cryptography to make it difficult to tamper with past entries;
while Figure 6 shows how blockchain works [10]. Although (3) It has an agreed process for storing copies of the ledger
blockchain technology will for all time be associated with and adding new entries (also called a consensus protocol).
Bitcoin due to their common genesis, it has broader
applications. Cryptocurrency will increasingly become a factor
in family law issues as well.

Figure 7: The decentralized property of blockchain [10].

Blockchain is a novel decentralized infrastructure and
Figure 4: Five key elements of Blockchain [8]. distributed computing paradigm that uses a chained data

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structure for verification, storage, and distributed consensus Blockchain has the potential to unlock significant value for
algorithms to generate and update data. Decentralization is a organizations by reducing supply chain risk, increasing
key feature of blockchain technology, which refers to the visibility, and enhancing trust across a complex ecosystem.
distribution of power and decision-making across a network of Blockchain can be applied to supply chains to create an audit
nodes or participants rather than being controlled by a central trail of transactions and automate processes through smart
authority or system. It provides robustness while eliminating contracts. Blockchain makes supply chains transparent and
many-to-one traffic flows to avoid delays and single points of traceable. Traceability and transparency throughout the supply
failure. Figure 7 shows the decentralized property of chain now means that consumers can be sure they are getting
blockchain [10]. The advantages of decentralized property of what they paid for. Customers benefit from blockchain
blockchain network include the following [10]: technology in supply chain management because businesses
can deliver products quicker and more efficiently. Figure 8
 The decentralized property of blockchain makes it illustrates blockchain in supply chain [13].
less prone to failure and more expensive for hackers
to attack the network. IV. INDUSTRIAL EXAMPLES OF BLOCKCHAIN
 There is no third-party involvement; therefore, there is SUPPLY CHAIN
no added risk. Many large-scale corporations already experiment with
 Every change made in the network is traceable and blockchain and put the blockchain's capabilities to good use in
concrete. their own supply chains. The prominent companies that use
 Users maintain full autonomy of their properties and blockchain for supply chain management include IBM,
are not dependent on third parties to maintain and Walmart, FedEx, British Airways, DHL, Dole, and Nestle. For
manage their assets. example, Maersk used an IBM blockchain solution to
 It provides enhanced security. efficiently track its containers around the world. Similarly,
III. BLOCKCHAIN IN SUPPLY CHAIN Walmart and IBM have successfully implemented a
blockchain-based solution for tracking pork products in China
Today, companies must be agile, flexible, competitive, and with a farm-to-table approach, providing transparency and full
responsive to survive. As the pace of change accelerates, information about the supply chain stages every individual
improving the efficiency and transparency of an organization’s product went through. Industrial examples of blockchain
supply chain becomes critical. Fortunately, blockchain applications in supply chain include the following [14,15]:
technology can help simplify the process. Blockchain
technology has transformed the business world, and supply  Walmart: Since 2018, Walmart has been using
chain management is no exception. With its ability to create blockchain to manage their suppliers of leafy greens.
secure and transparent networks, blockchain will reshape the Their goal is to ensure the safety of the products they
way we manage supply chains. Nevertheless, blockchain sell and to reduce the time it takes to provide evidence
technology is no silver bullet. Supply chains are often hostage in the event of a claim. The solution gathers data
to a host of factors including geopolitical tensions, about every step the greens go through, from when the
cyberattacks, inflation, droughts that disrupt shipping by seeds are planted. Once the greens are on the shelves,
lowering water levels, and critical product stockouts, as well as the company can continue to add data to the platform.
the many unforeseen effects of global warming. Since supply For example, sourcing the origin of sliced mangoes in
chains involve many parties, often across the globe, an their US stores takes two seconds with blockchain,
accurate, rapidly updated, secure, and visible record benefits while using traditional tracing methods would take a
everyone involved. week. Walmart has taken a serious interest in the
blockchain, piloting multiple programs. From tracing
the origins of mangoes in the US to tracking pork sold
in its Chinese markets, the retail giant has embraced
leveraging the blockchain to improve supply chain
visibility and traceability. Walmart
and IBM collaborated to create a blockchain-based
platform for tracking food products in the supply
chain. The platform aims to improve the traceability
of food products, reduce food waste, and increase
consumer trust in the food supply chain.
 Nestlé: This company was not involved in the
incident with baby milk, but their business was
affected by it. They decided to use blockchain to
strengthen their position in the Chinese market. The
solution records the journey baby formula takes on its
way to the supermarket shelf. With a mobile phone, a
consumer can scan a chip located on the formula
package to see the ingredients, their source, and the
organizations that produced them. Nestlé also
provided the milk packages with antennas that will
break if someone tries to open them. This helps
Figure 8: Blockchain in supply chain [13]. reassure customers that products have not been
tampered with on their way to the supermarket.
A blockchain is a secure and decentralized digital ledger that is
publicly readable for auditing and other purposes. Its use of  Unilever: This company aims to achieve a
cryptography makes entries in the ledger unchangeable. deforestation-free supply chain by the end of 2023, so
they need to know how sustainable their supply chains
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really are. Existing systems for sustainability from a lack of visibility and trust among participants.
certification are not enough to provide this Blockchain technology addresses this challenge by
information; so the company decided to use providing a decentralized and immutable ledger that
blockchain. They started a pilot project in Indonesia all stakeholders can access and verify. It allows every
to trace the palm oil they bought. As a participant in the supply chain to access the same
result, Unilever could get information about the data, creating transparency and eliminating the need
product, including the conditions in which it was for intermediaries to verify information. A
grown and harvested. decentralized, immutable record of transactions
 FedEx: FedEx has integrated the blockchain into its allows stakeholders to track goods from source to
chain of custody to improve traceability and provide a delivery, enhancing transparency. By integrating
trustworthy record, helping to address customer blockchain through smart sensors and RFID tags,
disputes. The company has also joined the Blockchain companies can accurately track goods through the
in Transport Alliance (BiTA) and is a vocal supply chain. Such IoT and blockchain-powered tools
advocate for the adoption of a blockchain-based record conditions such as temperature and humidity at
industry standard. each stage. Every transaction recorded on the
 Tracifier: This German startup provides supply chain blockchain is transparent and cannot be altered,
traceability solutions. Tracifier’s offerings include ensuring a single source of truth for all involved
verification and tracking across the supply chain. The parties. This transparency enables real-time tracking
company sought to make it easier to track, trace, and of goods, from raw materials to the end product,
verify food products—where they originated, when allowing businesses to identify bottlenecks,
they were produced, and the relevant safety standards inefficiencies, and potential areas for improvement.
and inspections. Tracifier saw a path to this through  Tradeability: This is a unique blockchain offering
blockchain technology and integrated Oracle that redefines the conventional marketplace concept.
Blockchain into its supply chain management Using blockchain, one may ―tokenize‖ an asset by
database. Tracifier saw its own operational splitting an object into shares that digitally represent
improvements with greater efficiency, fewer delays, ownership. Similar to how a stock exchange allows
and reduced costs. trading of a company’s shares, this fractional
ownership allows tokens to represent the value of a
V. APPLICATIONS OF BLOCKCHAIN IN SUPPLY shareholder’s stake of a given object. These tokens
CHAIN are tradeable, and users can transfer ownership
Blockchain offers several key features that significantly without the physical asset changing hands.
enhance transparency and traceability in supply chains. The Blockchain provides consensus, which means there is
common use cases of blockchain for supply chain management no dispute in the chain regarding transactions by
include the following [16,17]: design. All entities on the chain have the same version
of the ledger, giving it the unique potential to track
 Traceability: This is one of blockchain's most ownership records for real estate, automobiles, and
compelling use cases in supply chain management. In digital assets.
supply chain management, traceability refers to  Smart Contracts: These represent a transformative
tracking inventory locations and custody from raw use case of blockchain technology in supply chain
materials to end customers. Blockchain traceability management. Smart contracts are self-executing
helps verify the authenticity of products, which is agreements with predefined rules and conditions
especially crucial in industries like pharmaceuticals encoded on the blockchain. By leveraging
and luxury goods. Blockchain technology brings blockchain's decentralized and transparent nature,
inherent security and traceability, all while providing smart contracts eliminate the need for intermediaries,
a data source that is readable by all parties. reduce administrative costs, and minimize the risk of
Blockchain’s public ledger provides a product’s errors or disputes. Figure 9 shows different
provenance, tracking it from start to finish. components of a smart contract [1].
Organizations need processes to dependably label
 Inventory Management: Inventory management
individual goods or components so they can be traced
represents a crucial use case for blockchain
back to lots, for example. By recording each step of a
technology in supply chain management. Traditional
product's journey on the blockchain, it enables inventory management systems often suffer from
detailed tracking of goods from origin to final inefficiencies, inaccuracies, and a lack of real-time
destination, facilitating recalls and quality control.
visibility. Blockchain addresses these challenges by
Blockchain empowers businesses to create an
providing a secure and transparent ledger that tracks
immutable ledger of every product's journey, from its
the movement and status of inventory items across the
origin to its final destination. With blockchain's supply chain. Blockchain provides real-time inventory
transparent and tamper-proof record-keeping, tracking, reducing discrepancies. Maersk and IBM’s
companies can trace the movement of goods with
TradeLens platform use blockchain to track shipping
unparalleled accuracy.
containers and warehousing automation, improving
 Transparency: One of the biggest challenges facing visibility and reducing delays.
supply chain managers today is maintaining visibility
 Compliance: Regulatory compliance is a growing
across the entire network. As goods move from one concern among most companies, as failure to adhere
location to another, it can be difficult to track them can result in penalties and reputational damage.
accurately. This lack of transparency can lead to
Thankfully, blockchain’s ability to create tamper-
delays, errors, and even fraud. Transparency is a
proof records helps you meet relevant standards and
significant use case of blockchain for supply chain
requirements by documenting every transaction
management. Traditional supply chains often suffer
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accurately. With its immutable and transparent transactions. This means that there is no central point
nature, blockchain provides a reliable and auditable of control and no single point of failure.
record of all transactions and activities throughout the  Reduced Costs: The gains to efficiency and
supply chain. This data enables businesses to reductions in stock loss and waste are significant
demonstrate compliance with various regulations, sources of cost savings with blockchain technology.
standards, and certifications. Implementing blockchain technology can help reduce
 Food Supply Chain: Information sharing lies at the costs across the entire supply chain by eliminating
core of most governance interventions within agro- intermediaries and reducing administrative overheads.
food commodity supply-chains. Blockchain is under For example, the automotive industry can save costs
consideration by the food industry for the food supply through reducing the cost of inventory tracking.
chain health. For example, Walmart with the Currently, tracking inventory levels involves manual
collaboration of IBM innovatively uses blockchain tasks such as checking for stock availability and
technology to track the provenance and condition of manually updating records. By leveraging blockchain,
its pork supply coming from China. Blockchain companies can automate these processes and reduce
technology can potentially alleviate the numerous the administrative overheads associated with them.
sustainability problems related to agro-food  Increased Efficiency: Traditional supply chains often
commodity supply-chains by fostering traceability involve multiple intermediaries, manual record-
and transparency. Ensuring that sustainability keeping, and time-consuming reconciliations. They
information at all stages, from farm to consumers, suffer from information disparity, where participants
passes unmodified through the supply chain is have limited visibility into the activities and
onerous, costly and entails risks of fraud. Throughout transactions of others, leading to inefficiencies and
agro-food supply chains, blockchain supposedly potential fraud. Blockchain technology streamlines
provides ample opportunities for addressing these operations by creating a decentralized,
sustainability issues. transparent ledger that all parties can access in real
time. This process eliminates the need for
intermediaries, reduces the risk of errors, and
expedites transaction processes. Blockchain
technology in supply chain management also
contributes to timely resolved compliance problems
and automated workflows, resulting in higher
efficiency. The enhanced visibility helps detect and
address issues like compliance violations,
counterfeits, delays, and waste more rapidly.
 Enhanced Security: Another important feature of
blockchain technology is its security. A blockchain
addresses security by using one-way hashing and
recording transactions on multiple systems; this
Figure 9: Components of a smart contract [1]. ensures that data is, for all practical purposes,
unchangeable. Blockchain technology is highly secure
VI. BENEFITS due to its distributed nature and use of cryptography.
Enabling traceability, enhancing transparency and establishing The use of cryptography ensures that once data has
product provenance are not the only benefits of using been recorded on the blockchain, it cannot be altered
blockchain technology. Blockchain is widely used in numerous without consensus from the network participants. This
industries to enhance supply chain operations through makes it virtually impossible for hackers or malicious
increased transparency, visibility, compliance, and actors to tamper with data on the blockchain. The
collaboration. With its decentralized and immutable nature, cryptographic features protect sensitive information,
blockchain offers unprecedented transparency, efficiency, and making it harder to access or alter data for
trust in supply chain processes. Blockchain technology can be unauthorized entities. Supply chain and blockchain
used to ensure that products meet certain quality standards transparency allows all stakeholders to verify
throughout the supply chain. Other benefits include [16,18]: transactions independently, lowering the risk of
compromise and errors.
 Automation: Blockchain can be used to automate  Reduced Risk: The risks associated with the supply
certain processes within a supply chain through smart chain mainly originate from four channels: sourcing,
contracts. Smart contracts on blockchain automate transportation, processing, and distribution. With
and streamline various supply chain processes, such blockchain, businesses can track and verify every step
as procurement, payments, and compliance. They of the supply chain process, from sourcing to
automate payments upon delivery, reducing distribution, in a secure and decentralized manner.
administrative overhead. Blockchain also facilitates This transparency helps identify potential risks and
the automation of compliance processes through smart vulnerabilities, such as counterfeit products,
contracts, ensuring that all parties adhere to unauthorized modifications, or delays in
predefined rules and regulations. transportation.
 Decentralization: One of the key features of  Enhanced Trust: A supply chain typically consists of
blockchain technology is its decentralization. Unlike multiple stakeholders, processes, and transactions.
traditional databases, which are typically controlled Trust is critical for establishing efficient operations
by a single entity, blockchain allows for multiple and a sustainable delivery stream. With blockchain,
parties to participate in the network and verify each transaction is time-stamped and linked to

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previous transactions, creating an immutable audit for supply chain operations. Supply chain enterprises should
trail that can be verified by all parties involved. By consider these challenges during the decision-making process.
having a shared and tamper-proof record of Companies must consider the costs associated with developing
transactions, blockchain technology enables increased and maintaining a blockchain network over time. Since
trust among supply chain participants. blockchain technology is still relatively new, there is some
 Improved Collaboration: Implementing blockchain uncertainty around how it will be regulated in different
technology requires collaboration with partners across jurisdictions. The technology’s intrinsic transparency can raise
the supply chain. A traditional supply chain involves privacy issues, especially when public blockchains are used.
multiple parties, such as manufacturers, suppliers, Other challenges include [13,18,19]:
distributors, retailers, and customers, each with its
 Complexity: Complexity indicates to which degree
own systems and databases. This fragmentation often
the innovation is perceived as being difficult to
leads to inefficiencies, delays, and a lack of
understand and use. Supply chains are complex
collaboration among the participants. With
networks of actors who perform different functions
blockchain, all participants access a shared ledger that
and are usually located in different parts of the world.
records and verifies every transaction or event in real
In recent years, supply chain management has become
time. Globalisation and advances in technology have
increasingly complex. The more complex the supply
made it possible for companies to operate across
chain, the more black holes there can be. Blockchain
borders and collaborate with suppliers and partners
is a disruptive and relatively complex technology.
from all over the world.
Embracing blockchain in supply chain management
 Enhanced Compliance: Blockchain can help ensure
can be complex due to the fragmented nature of
adherence to regulations and standards by providing a
global supply chains, which involve multiple
complete audit trail. By recording data on the
stakeholders, systems, and processes. Integrating
blockchain at each stage of production, companies can
blockchain technology across diverse systems and
track and verify compliance with specific
ensuring compatibility can be challenging.
requirements.
 High Cost: The initial investment required for
 Sustainability: As ESG (environmental, social and
technology adoption can also be daunting. To
governance) and sustainability aspects become
alleviate this, startups might seek partnerships with
crucial, blockchain development services are greatly
established supply chain entities, sharing resources
used to promote environmental sustainability. This
and expertise. This collaboration not only eases the
emerging technology tracks carbon emissions and
financial burden but also accelerates integration and
many other environmental impacts throughout the
adoption.
supply chain. As sustainability becomes more
 Resistance to Change: A primary challenge is
important in our world, blockchain technology will be
resistance to change. Traditional supply chain systems
used to promote environmental sustainability by
are deeply entrenched, and introducing new
tracking carbon emissions and other environmental
technology like blockchain often meets skepticism.
impacts throughout the supply chain. This information
To counter this, startups focus on educating
can then be used to identify areas for improvement
stakeholders about the long-term benefits, such as
and reduce overall environmental impact. Europe will
enhanced transparency, security, and efficiency.
soon have mandatory reporting on ESG issues.
 Inefficiencies: Traditional supply chains often face
Some of these benefits are displayed in Figure 10 [16]. inefficiencies and delays due to manual processes,
redundant paperwork, and lack of real-time
information. Moreover, employing blockchain for
supply chain management requires re-engineering
these processes, which can disrupt operations and face
resistance.
 Scalability: The more companies use blockchain
technology, the more the question of scalability arises.
The current infrastructure may not be able to process
large volumes of transactions without significant
delays or other performance issues. Several scalability
considerations in implementing blockchain for supply
chain operations include high-speed connectivity,
processing power, storage capacity, and energy
consumption. Traditional blockchains use proof-of-
work (PoW), which requires significant computational
power and time to validate transactions. Another
scalability challenge is the storage and processing
requirements of blockchain data. Each transaction is
recorded on every node in the network, leading to a
large amount of data storage. As the supply chain
grows and more transactions occur, the storage and
Figure 10: Some benefits of blockchain in supply chain [16]. processing demands increase exponentially. The
VII. CHALLENGES increase in demand can strain the network's resources
and hinder scalability. Additionally, the scalability
Although blockchain offers multiple benefits in different and performance of blockchain networks can vary,
industries, there are several challenges in its implementation further complicating interoperability efforts.
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 Regulatory Compliance: The decentralized nature of track, verify, and secure their transactions. It has immense
blockchain technology raises concerns regarding legal potential to transform the way supply chain management is
compliance. Different countries and regions have conducted. It has already begun to transform supply chain
varying regulations and standards for data protection, management, but its impact is only just beginning. From
intellectual property rights, and cross-border enhancing traceability and reducing fraud to optimizing
transactions. Implementing blockchain in a supply inventory management and streamlining logistics, blockchain
chain requires careful consideration of these has the potential to reshape the supply chain landscape.
regulations to ensure compliance.
In spite of the promises and the enormous potential of
 Interoperability: As blockchain adoption becomes blockchain technology, its adoption in supply chains is still
more mainstream, there must be a universal underexplored. Integrating blockchain technology in supply
agreement on interoperability standards for ensuring chain management can transform how businesses operate. As
global alignment. Each blockchain network may have blockchain technology matures, it will gradually replace
its unique structure, consensus mechanism, and smart traditional supply chain processes. As more businesses
contract language, making it difficult to establish a recognize the benefits of blockchain technology, we can expect
standard protocol for data exchange. There must be to see greater adoption across the entire supply chain. The
universal consensus and interoperable standards to future of blockchain in supply chain management is promising,
ensure compatibility across multiple blockchain with the potential for wider adoption and integration [20]. The
platforms, applications, and ecosystems. future of supply chain management is clear: blockchain
 Risks: Businesses must be aware of any security risks technology will make supply chains more transparent, secure,
associated with the use of blockchain technology. and efficient. More information on the integration of
There is a risk that sensitive information could be blockchain technology into the supply chain industry is
exposed if proper precautions are not taken due to its available from the books in [21-30] and a related journal: IEEE
transparency of the blockchain. Companies must be Blockchain.
vigilant in protecting their systems against security
threats, data breaches, and malicious actors. References
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 Lack of Communication: Even though goods pass 276.
from touchpoint to touchpoint along a supply chain, [5] ―Blockchain,‖ Wikipedia, the free encyclopedia,
there is often a lack of communication between them. https://en.wikipedia.org/wiki/Blockchain
A lack of tracking results in a lack of quality [6] S. Nakamoto, ―Bitcoin: A peer-to-peer electronic cash
assurance, as well as the inability for thorough system,‖ https://bitcoin.org/bitcoin.pdf
compliance reporting. A lack of communication can [7] ―The beginning of a new era in technology: Blockchain
result in a lack of access to financing for upstream traceability,‖ https://www.visiott.com/blog/blockchain-
suppliers who remain cut off from downstream traceability/#:~:text=The%20Beginning%20of%20a%20N
financiers. ew,money%20without%20a%20central%20bank.
 Lack of Privacy: Across today's supply chain, there is [8] ―The CIO’s guide to blockchain,‖
a lack of symmetry when it comes to information- https://www.gartner.com/smarterwithgartner/the-cios-
sharing. Upstream suppliers will be more likely to guide-to-
withhold information about their operations, pricing blockchain#:~:text=True%20blockchain%20has%20five%
and sourcing to keep a competitive advantage. 20elements,%2C%20immutability%2C%20tokenization%
However, downstream retailers want to know this 20and%20decentralization.
information about their products and goods. [9] ―Blockchain and space exploration: Is decentralized data
Unfortunately, legacy data management tools often the future of space missions?‖ October 2024,
lack the ability for such granular control over https://medium.com/coinmonks/is-decentralized-data-the-
information-sharing. future-of-space-missions-646173d1aeec
 Lack of Security: Another supply chain challenge is [10] B. G. Celik, Y. S. Abraham, and M. Attaran, ―Unlocking
keeping the system secure, especially when blockchain in construction: A systematic review of
centralized servers are vulnerable to attacks that can applications and barriers,‖ Buildings, vol. 14, no. 6, 2024.
easily impact the entire supply chain. [11] D. Singh, ―Blockchain in pharmaceutical supply chain:
CONCLUSION The next big frontier,‖ October 2023,
https://www.debutinfotech.com/blog/blockchain-in-
Blockchain technology has emerged as a game-changer in pharmaceutical-supply-chain-the-next-big-frontier
supply chain management, revolutionizing how businesses

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 International Journal of Trend in Research and Development, Volume 12(2), ISSN: 2394-9333
www.ijtrd.com
[12] D. Michels, ―Technology blockchain and telecoms,‖ [30] P. Chawla, A. Kumar, and A. Nayyar (eds.), Blockchain,
https://www.iicom.org/wp-content/uploads/22-26- Iot, and AI Technologies for Supply Chain Management
blockchain.pdf (Innovations in Intelligent Internet of Everything (Ioe).
[13] ―How blockchain can transform your supply chain Boca Raton, FL: CRC Press, 2023.
management,‖ June 13, 2024,
https://www.apptunix.com/blog/how-blockchain-can-
ABOUT THE AUTHORS
transform-your-supply-chain-management/
[14] A. Hofer, ―Four examples of blockchain in supply chain Matthew N.O. Sadiku is a professor emeritus in the
management,‖ March 2023, Department of Electrical and Computer Engineering at Prairie
https://www.softeq.com/blog/four-blockchain-supply- View A&M University, Prairie View, Texas. He is the author
chain-examples of several books and papers. His areas of research interest
[15] M. Chen, ―Blockchain for supply chain: Uses and include computational electromagnetics, computer networks,
benefits,‖ August 2024, engineering education, and marriage counseling. He is a Life
https://www.oracle.com/blockchain/what-is- Fellow of IEEE.
blockchain/blockchain-for-supply-chain/
Ajayi A. Samuel is currently a graduate student in the
[16] H. Chawre, ―Blockchain for supply chain: Paving the way
for transparency and efficiency,‖ September 2023, Department of Computer Science at Texas Southern
https://www.turing.com/resources/blockchain-for-supply- University, Houston, Texas. He holds a master’s degree in
mechanical engineering from Hanbat National University,
chains
South Korea (2024) and earned his bachelor’s degree in
[17] S. L. Bager, C. Singh, and U. M. Persson, ―Blockchain is
mechanical engineering from Ladoke Akintola University,
not a silver bullet for agro-food supply chain
sustainability: Insights from a coffee case study,‖ Current Nigeria (2018). His research areas include heat and mass
Research in Environmental Sustainability, vol. 4, 2022. transfer, programmable logic controllers, cybersecurity,
thermodynamics, condensation, and energy systems.
[18] ―Why and how to employ blockchain in supply chain
management (tips & success stories),‖ July 2024, Janet O. Sadiku holds bachelor degree in Nursing Science in
https://acropolium.com/blog/why-and-how-to-employ- 1980 at the University of Ife, now known as Obafemi
blockchain-in-supply-chain-management-tips-and- Awolowo University, Nigeria and doctoral degree from Juliana
success-stories/ King University, Houston, TX in December 2023. She has
[19] ―What makes blockchain the future of supply chain worked as a nurse, educator, and church minister in Nigeria,
transparency?‖ September 2024, United Kingdom, Canada, and United States. She is a co-
https://community.nasscom.in/communities/blockchain/w author of some papers and books.
hat-makes-blockchain-future-supply-chain-transparency
[20] ―Blockchain in supply chain: Revolutionizing supply
chain management with blockchain technology,‖
https://bloxbytes.com/revolutionizing-supply-chain-
management-with-blockchain/
[21] M. N. O. Sadiku, Blockchain Technology and Its
Applications. Moldova, Europe: Lambert Academic
Publishing, 2023.
[22] N. Vyas, A. Beije, and B. Krishnamachari, Blockchain and
the Supply Chain : Concepts, Strategies and Practical
Applications. ‎Kogan Page, 2nd edition, 2022.
[23] E. Hofmann, U. M. Strewe, and N. Bosia, Supply Chain
Finance and Blockchain Technology: The Case of Reverse
Securitisation. Springer, 2018.
[24] J. San, AI Implementation in Supply Chain Management:
A Comprehensive Guide to AI Integration, Predictive
Analytics, Machine Learning, IoT, Blockchain, and
Sustainable Innovations for Future-Ready Operations.
Independently Published, 2024.
[25] The Art of Service - Blockchain In Supply Chain
Publishing, Blockchain In Supply Chain A Complete
Guide - 2021 Edition. The Art of Service - Blockchain In
Supply Chain Publishing, 2020.
[26] D. Tapscott, Supply Chain Revolution: How Blockchain
Technology Is Transforming the Global Flow of Assets
(Blockchain Research Institute Enterprise). Barlow
Publishing, 2020.
[27] G. F. Leite, Blockchain in Supply Chain: Revolutionizing
Transparency and Efficiency. Independently Published,
2025.
[28] H. A. Duong, Blockchain applications in agriculture:
Revolutionizing the food supply chain (Business and
Finance). Vernon Press, 2024.
[29] G. Blokdyk, Blockchain in Supply Chain Standard
Requirements. 5STARCooks, 2021.

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