Blockchain technology key to veracity in supply chain transaction data

Abstract

Data are the foundation of the supply chain. However, the modern data stream in a supply chain is based on trust of the actors therein. Blockchain, a form of distributed ledger technology, eliminates the trust requirement of sharing supply chain data and allows each user to maintain an accurate, current copy of the ledger, without fear of data corruption or manipulation by bad actors. This paper reviews the application of blockchain to the management of transaction data in the supply chain. An overview of current blockchain technology will be discussed as well as advantages and disadvantages of the technology when applied to the supply chain. Current uses and research of the blockchain in supply chains will be discussed. There are three basic types of materials that are being explored in supply chain management using blockchain technology. The first is information-based materials and products. The most natural starting place for the blockchain is to replace the documentation and financial instruments. The second is fungible or commodity type materials. These goods are those delivered and consumed automatically, such as energy. The last are luxury, or crucial materials. These are items that are expensive or important enough that the costs of using advanced tracking technology makes economic sense.