Role of Blockchain-Oriented Smart Contract in Supply Chain

Abstract

AbstractSupply chain visibility and optimisation were always a concern of utmost importance due to the increasing complexity of the network of trading parties in the chain which result in inefficient processes. This has led to a higher cost and poor customer satisfaction. A novel elucidation for this old-age problem of trust can be given by blockchain technology (BT). It is an evolving technology that comforts the supply chain by providing means to track and manage the goods movement in the chain using a decentralised network that is secured enough and provides the benefit of removing the intermediaries. With the introduction of the blockchain, the smart contract has gotten one of the most looked for after advancements on account of the high customisation they supplement to transactions. In this paper, we will focus on smart contracts as one of the probable future research areas of BT. This paper is a literature review-based research of smart contracts in supply chain management, which includes analyses of the technological principles, benefits and challenges and how it works. The paper also deals with the historical background of the smart contracts to make the readers familiar with the subject which eventually will help in a better understanding. This work may provide a platform for further research with a wider scope on this topic. Looking at the current scenario in the supply chain and logistics industry, this paper can also guide the business processes to implement blockchain-based applications in the industry.KeywordsSupply chain managementSmart contractBlockchain technologyLiterature review