Blockchain-Based Smart Contracts for Enhancing Supply Chain Transparency

Abstract

This paper focuses on supply chain management and aims at analyzing how the use of smart contracts within the blockchain context can improve this area. For that, the study focuses on key challenges and hindrances of traditional supply chain management including absence of visibility in real time, issues of fraud, and errors due to the usage of manual processes, which the integration of block chain technology solves through the concept of decentralization and immutability. The research process includes the choice of a proper blockchain, smart contract creation and programming, implementation of the proper datasets and the system’s deployment in a cloud. Some of the parameters that can be considered are the probability of multiple transactions per second and the average response time for large numbers of transactions, and the given values are above 95%. Supply chain managers and operators are more satisfied with the service, which shows in the proposed average scores as to the translucency and the simplicity of use, namely with a 4. 6 out of 5. In terms of the benefits derived from the application of the new model, cost benefits include the general reduction of the annual operation cost by 25 percent, general error rates reduced by 76 percent while total processing time was done 57 percent better a 73 percent reduction in compliance incidents. These aspects, therefore, go to support the claim that the system can help to save more time and costs while also aiding in compliance with the law. Thus, the study concludes that smart supply chain contracts on blockchain enhance the supply chain’s transparency and enhance its efficiency for providing the consumer with the efficient, reliable, and trustworthy solution for supply chain contracts to be implemented; the further research of the blockchain using contracts in various circumstances of supply chain contracts is needed to ensure the maximum opportunities for the benefit.