An Application of Decentralized Product Authentication System for Supply Chain Management Using Blockchain Technology

Abstract

The supply chain management sector faces a significant challenge: the lack of adequate technological resources for authenticating product authenticity. Given the increasing interest in Bitcoin and its impact on the financial industry, Blockchain Technology (BCT) has garnered considerable attention across various sectors. Both academic studies and corporate practices have shown a growing interest in exploring the applications of BCT in Supply Chain Management (SCM). By harnessing the power of Blockchain Technology and smart contracts, it becomes possible to overcome traditional constraints and authenticate products in a simple, cost-effective, and secure manner. Decentralized and immutable blockchain systems allow for tracking products back to their original source, enabling a robust verification process. In this work, we developed and implemented a system that leverages blockchain technology, specifically the Ethereum platform, and smart contracts for product authentication. Through a comprehensive analysis, we have identified the requirements for transitioning from the existing centralized system to a decentralized and distributed blockchain-based ledger technology. By providing complete access to the product’s history, from its inception to packaging and delivery, the integration of distributed ledger technology into supply chain systems has greatly simplified the product authentication process.