BLOCKCHAIN TECHNOLOGY IN SUPPLY CHAIN MANAGEMENT: SECURITY IMPLICATIONS

Abstract

Security in supply chain management plays a critical role in today's global trade networks. This study examines the contributions of Blockchain, based on distributed ledger technology (DLT), in enhancing data integrity, traceability, and resistance to fraud in the supply chain. Blockchain's decentralized structure, by recording each transaction in immutable blocks, minimizes the risks of data manipulation and unauthorized access. Studies in the literature show that, thanks to this technology, transparency and auditability have been strengthened, thus increasing trust in the supply chain. However, scalability issues, high energy consumption, and integration challenges with different stakeholder systems are the main barriers limiting the widespread adoption of the technology. The study suggests that these limitations could be overcome with hybrid DLT architectures and formal assurance methods; additionally, real-world pilot applications and regulatory framework developments could help materialize Blockchain's security and operational efficiency advantages. Thus, Blockchain emerges as an innovative solution with the potential to enhance both the security and efficiency of supply chain processes.