Role of Blockchain Technology in Enhancing Supplychain Traceability, Transparency and Efficiency

Abstract

The conventional traceability system faces challenges such as centralized control, lack of transparency, unreliable data, and the frequent creation of information silos. To address these issues, this paper introduces a blockchain-based traceability system tailored for the storage and retrieval of product information in the agricultural supply chain. Utilizing blockchain's inherent properties of decentralization, immutability, and traceability, this system enhances the transparency and trustworthiness of traceability data. Furthermore, the integration of blockchain technology with cryptography is suggested to enable the secure exchange of private information within the blockchain network. Additionally, we have developed a reputation-based smart contract system to motivate network participants to contribute traceability data actively. This approach aims to leverage blockchain's capabilities to overcome the limitations of traditional traceability systems in the agricultural sector. This research paper explores the role of blockchain technology in enhancing supply chain transparency and efficiency, focused on food and agriculture sector. It underscores the growing consumer demand for authentic product and the challenges of maintaining transparency is increasingly becoming difficult in global and complex markets. Findings reveal that blockchain has significant capabilities to increases transparency, traceability, and security, while potentially reducing costs and errors. However, the study also identifies challenges, such as technological complexities, scalability issues, regulatory uncertainties, and integration hurdles. A strategic framework for adopting blockchain in retail supply chains is proposed, offering insights for practitioners and policy considerations. The paper also designs a novel traceability system for agricultural product supply chains, employing blockchain technology to address issues such as centralized management, opaque information, and data unreliability. The study concludes that while blockchain technology presents significant opportunities for transforming supply chains, realizing its full potential necessitates careful strategizing and sector-wide collaboration. The research offers recommendations for practitioners and outlines directions for future research, highlighting that the successful application of blockchain hinges on organizational adjustments and meeting specific boundary conditions.