Modern Supply Chain Research and Applications (Sep 2021)
Opportunities and limitations of public blockchain-based supply chain traceability
Abstract
Purpose – Blockchain technology is provoking significant disruptions, thereby affecting supply chain management. This study endeavoured to advance research regarding blockchain-based supply chain traceability by identifying the opportunities and limitations that accompany the adoption of public blockchains. Therefore, the purpose of the study is to contribute to contemporary supply chain research by an assessment of blockchain technology and its linkages to traceability. Design/methodology/approach – This paper is conceptual. The authors summarised the relevant literature on the concepts of supply chain traceability, conceptualised key elements exclusive to the public blockchain and highlighted opportunities and limitations in implementing traceability using blockchains. Findings – Incompatibilities were identified between general traceability and the public blockchain. However, when embracing the blockchain's privacy model, the blockchains can support information exchange in supply chains where vulnerability towards third parties, the confidentiality of information, or the privacy of participants are concerns. Furthermore, the public blockchain can support areas of supply chains where institutional interest is lacking. Originality/value – This is one of the first papers in an international supply chain management journal to critically analyse the intersection of specific blockchain characteristics and supply chain traceability requirements. The authors thereby add to the discussion of designs for a disintermediated, peer-to-peer models and guide researchers and practitioners alike in exploring the application of disruptive change from blockchain technologies. By setting focus on the privacy model, the paper identifies the potential application and future research approaches to exploit the elementary strength of the blockchain.
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