Impact of Distributed Ledger Technology on Supply Chain Sustainability

Abstract

This chapter describes the challenges and vulnerabilities of current supply chain management and presents the benefits of implementing blockchain and DLT technology in the supply chain processes. For a more precise understanding, the chapter presents a summary of the characteristics of blockchain technology and an overview of the energy consumption of different blockchain protocols to demystify the negative criticism of blockchain technologies in terms of energy consumption. The purpose of analyzing the characteristics and energy requirements is to present the potential of DLTs to positively impact supply chains and make the blockchain industry more sustainable. After describing the sector's challenges and the technology's characteristics, the chapter presents case studies in which DLT has been successfully integrated into the supply chain of various products and goods. The chapter concludes by highlighting the necessary conditions to promote the adoption of DLT technology globally.