Blockchain and Sustainable Supply Chains: Transparency in Trade
DEAR JAKARTA, 2050SUSTAINABLE PROGRESS
Gilsey Victoria Makmuri
10/19/20252 min read
Abstract
Concerns about supply chain accountability, sustainability, and transparency have grown as a result of the quickening pace of trade globalisation. As traditional supply chain systems frequently lack visibility and inefficiencies, therefore consumer mistrust is possible. Blockchain technology has become a game-changing instrument for guaranteeing traceability, transparency, and trust in international trade networks. This paper examines how blockchain technology can be used in sustainable supply chains, examining how it can improve accountability, efficiency, and transparency.
Introduction
Supply chain transparency has become a crucial issue in international trade in a time when consumers and regulators are demanding more evidence of sustainable practices and ethical sourcing. The effects on the environment, working conditions, and authenticity of industries like food, textiles, and luxury goods are all under scrutiny. Verifiable data across intricate, international networks is a challenge for traditional supply chain management systems. A possible remedy is provided by blockchain technology, which allows stakeholders to track goods from production to consumption with previously unheard-of dependability thanks to its immutable, decentralised ledger.
Discussion
Adoption of blockchain technology has shown promise in industries like food, where businesses like Walmart have reduced traceability times from days to seconds (Kamath, 2018). Blockchain is used by companies such as De Beers in the diamond trade to confirm authenticity and guarantee ethical sourcing (Tapscott & Tapscott, 2017). These uses show how blockchain can improve compliance, lower fraud, and increase trust.
Blockchain has also been adopted by the high-end fashion sector to combat counterfeiting and sustainability. not only to improve supply chain transparency but also to comply with new sustainability laws.
There are still difficulties in spite of these advantages. High implementation costs, technical know-how, and trustworthy data input are necessary for blockchain systems. There are still issues with scalability and standardisation in international supply chains (Queiroz & Wamba, 2019).
Conclusion
Blockchain is changing sustainable supply chains by making them more open, easier to follow, and more trustworthy for customers. Even though there are still technical and regulatory problems, its use in both basic goods and high-end fashion shows how it could change the world. As businesses and governments put more emphasis on sustainability, blockchain is likely to be a key part of creating global trade systems that are fair and open.
References:
https://en.wikipedia.org/wiki/Blockchain
https://international.areai.or.id/index.php/IJECM/article/download/305/491