Decentralized Identity System for High-value Commodity Supply Chain based on Consortium Blockchain

Abstract

High-value commodities, such as luxury goods, artworks, and jewelry, face unique challenges in terms of traceability, transparency, and authenticity due to their distinctiveness and high value. This study aims to propose an innovative solution for the high-value commodity supply chain by integrating elements of consortium blockchain technology, non-fungible tokens (NFTs), and decentralized identities (DIDs). We utilize consortium blockchain technology to build a supply chain management system with digital twinning features, where each user possesses an immutable DID. The system leverages NFTs as digital twins for commodities, utilizing smart contracts to record production and logistics information, ensuring transaction transparency and credibility. Simultaneously, the introduction of DID) enhances the security of user identity information on the supply chain. This comprehensive solution integrates consortium blockchain, NFTs, and decentralized identities, providing a higher level of security, traceability, and user control for the high-value commodity supply chain.