NFT based Digital Twins for Tracing Value Added Creation in Manufacturing Supply Chains

Abstract

The globalization of products and markets increases the distance between the origin of products and consumers. This leads to a condition where customers don't have information about the origins of their products. Thus, traceability has become an essential sub-system of manufacturing supply chain management. However, due to globalization and complexity of supply chain interactions among the suppliers and manufacturing enterprises, it is hard to pinpoint the exact contributions of different actors in a supply chain. Integrated supply network structure with suitable visibility and usage of real time data transfer is another area of great importance. This paper focuses on how NFT (Non-Fungible Token) coupled with smart contracts could utilize blockchain to make it easier to track the products in a supply chain. Explaining how NFT's could help in tracking the contributions of different stakeholders in a supply chain by tracking the product throughout the entire process of sourcing, production, and sale by using a digital twin. In a manufacturing supply chain enabled by NFT Technology, whenever raw materials are transferred and processed through the supply chain, an NFT would be attached to its digital twin which will capture the created values. Each NFT can easily and uniquely be known by its data stored. Data would be updated based on real time information and will enable the stakeholders to trace the product information about how much each company has contributed to the produced products. The data stored in the form of a smart contract in the blockchain prevents the data being entered from being destroyed, eliminated, or changed without permission. Thus, there is a secure data flow among different stakeholders.