Decentralizing Electric Vehicle Supply Chains: Value Proposition and System Design

Abstract

Distributed ledger technologies are transforming existing business models and business relationships. In particular, blockchain allows non-trusting parties to manage a shared database in a decentralized way and improve the transparency, authenticity, and reliability of the exchanged data. Nonetheless, decentralized paradigms are not yet well established, resulting in only a fraction of blockchain-based applications being successful in the long term.In this paper, we present a blockchain-based solution for the electric vehicle supply chain that we designed in the context of the CONCORDIA project of the European Cybersecurity Competence Network. We describe the goals, the value proposition, the main design choices, and the architecture of our system. Moreover, we discuss the electric vehicle supply chain, analyzing the improvements and limitations introduced by our blockchain-based solution. We analyze our solution from the managerial and technical points of view through a lean business methodology for blockchain solutions. In particular, we developed an economic impact assessment to evaluate the potential costs and revenues of the application of blockchain technology in a supply chain context. Although the blockchain system is inspired by the supply chain of a multinational automotive company, it can be applied to any other multi-actor supply chain.