In the traditional fresh supply chain, farmers commonly conceal the true quality information of their products in order to achieve better sales. This article focuses on the use of blockchain technology to address the issue of false freshness reporting in a two-level fresh supply chain consisting of a rural cooperative and a supermarket. Taking into account the dual losses of quality and quantity in the process of agricultural products transportation, the impacts of the product freshness and the blockchain investment level on random market demand are quantified in this paper. And game models for centralized and decentralized decision-making before and after investing in blockchain technology are proposed. By comparing the supply chain optimal decisions and performances under different scenarios, a revenue-cost sharing contract is designed to coordinate the decentralized decision-making. Simulation results show that the application of the blockchain technology can further consolidate the superiority of the centralized decision-making. However, there is a certain threshold for the application of the blockchain technology in decentralized decision-making. When the unit cost of blockchain exceeds the threshold, the rural cooperative will abandon its cooperation with the supermarket due to reduced profits. And the combined contract also has a threshold boundary for its coordinating effect on decentralized decision-making.
Shujian Ma, Jiarong Cai, Gang Wang, Xiangliang Ge ¡ 6 authors
The application of blockchain has become a trend in the development of supply chain finance. Aiming to bridge the gap in the existing literature, this paper investigates a supply chain finance system based on blockchain technology which contains a manufacturer, a retailer and a financial institution and incorporates blockchain costs into the model. Firstly, this paper establishes a supply chain finance model based on blockchain technology and it presents a comparison with the process employed under the traditional model. Secondly, this paper establishes the revenue mathematical model of supply chain finance based on blockchain technology. Thirdly, the optimal decisions of each participant under centralized and decentralized decision-making are proved and obtained, respectively, and the influencing factors of the optimal decisions are analyzed. Finally, the conclusions are verified via simulations. This study finds that, when blockchain is used, the benefits of each participant in the chain are increased. In addition, centralized decision-making, which is more optimal in the traditional model, is also enhanced under blockchain. This paper demonstrates the superiority of blockchain-enabled supply chain finance in terms of model and revenue. This provides some suggestions for companies in the supply chain with regard to solving the problem of financing difficulties.
Blockchain industry and smart contract methods are new tools and technologies for changing the supply chain management process. Blockchain gives a distributed ledger procedure, enabling secured and transparent transaction system without middlemen. Smart contracts are self-executing agreements and performed on blockchains. This chapter provides an overview of blockchain technologies and smart contracts methodologies and their character in supply chain processes and management. It explains the benefits of using smart contracts technologies, such as more efficiency, increased transparency, and secured methodologies. The chapter provides the use cases in supply chain processes and management, including trace and track, supply chain financing tools, and counterfeiting prevention methods. Implementation systems such as ways of interoperability, methods of scalability, techniques of security, and processes regulatory compliance are examined and explained. Limitations and challenges are also considered in the discussion. The chapter concludes with a future in smart contracts processes and blockchain methodologies for supply chain management issues.
Marjan Alirezaie, William Hoffman, Paria Zabihi, Hossein Rahnama ¡ 5 authors
The complexities arising from disparate data sources, conflicting contracts, residency requirements, and the demand for multiple AI models in trade finance supply chains have hindered small and medium-sized enterprises (SMEs) with limited resources from harnessing the benefits of artificial intelligence (AI) capabilities, which could otherwise enhance their business efficiency and predictability. This paper introduces a decentralized AI orchestration framework that prioritizes transparency and explainability, offering valuable insights to funders, such as banks, and aiding them in overcoming the challenges associated with assessing SMEsâ financial credibility. By utilizing an orchestration technique involving symbolic reasoners, language models, and data-driven predictive tools, the framework empowers funders to make more informed decisions regarding cash flow prediction, finance rate optimization, and ecosystem risk assessment, ultimately facilitating improved access to pre-shipment trade finance for SMEs and enhancing overall supply chain operations.
Abstract As an emerging technology, blockchain has recently gained attention in both academic and economic fields, but its adoption is not yet widespread in the banking sector in Taiwan. As academics have paid scant attention to this topic, this study determines the critical factors affecting blockchain adoption from the organizational perspective in the banking industry. We propose hybrid methods to fill the gap in the literature. First, we apply the technology-organization-environment framework as the basis and combine relevant factors as a framework to identify the relevant evaluation factors. Second, we propose a hybrid method that integrates the decision-making trial and evaluation laboratory (DEMATEL) with the evaluation based on distance from average solution (EDAS) approach and employs DEMATEL to measure the importance of the factors and alternatives to blockchain as ranked by the EDAS method. According to the ranking results, we identify the best preference among alternatives to blockchain. The results suggest that organizational and technological aspects are the main considerations to enhance and promote the effectiveness of blockchain adoption. This study suggests valuable strategies for stimulating blockchain adoption in the banking sector in Taiwan.
A supply chain is a logistic system that converts raw materials into finished products and distributes them to customers. The system usually consists of material producers, factories, organisations, sellers, consumers as well as transportation. Data and information such as manufacturing data and shipment data also form an important part of the supply chain system and is usually maintained centrally by one entity. Centralisation can cause several problems in supply chain system management, such as single point of failure, corruption, and data tampering. Blockchain has for the past years emerged as a decentralised technology that can help solve the problem of centralisation. The research, therefore, explores the feasibility of using blockchain technology in the supply chain system focusing on coffee produce and shipment. We analyse the suitability of blockchain to the supply chain. We then designed and implemented a smart contract using Solidity, which runs on an Ethereum-based blockchain to show that supply chain data can be traced and blockchain can be used for supply chain purposes.
Purpose Know your customer (KYC), accounting standards, issuance, clearing, and trade settlement became the major barrier to implement accounting, accountability and assurance process in supply chain finance (SCF). Blockchain technology features have the potential to solve accounting problems. This research focuses on exploring how blockchain technology provides solutions to overcome the barriers of accounting process in SCF. The benefits, opportunities, costs and risks related to blockchain adoption are also explored. Design/methodology/approach Multi-case study and qualitative methods are used with a framework based on blockchain role to overcome the accounting process barriers. Ten blockchain projects in SCF and 29 interviews of participants as a unit of analysis are considered. Findings The findings indicate that blockchain technology offers solutions to solve accounting, accountability and assurance problems in SCF. Validity, verification, smart contracts, automation and enduring data on trade transactions potentially solve those barriers. However, it is also necessary to consider costs such as implementation, technology, education and integration costs. Then there are possible risks such as regulatory compliance, operational, code development and scalability risk. This finding reflects the current status of blockchain technology roles in SCF. Research limitations/implications This study unveils blockchain's SCF accounting potential, emphasizing multi-case method limitations and future research prospects. Diverse contexts challenge findings' applicability, warranting cross-industry studies for deeper insights. Addressing selection bias and integrating quantitative measures can enhance understanding of blockchain's accounting impact. Practical implications Accounting professionals can get an idea of the future direction and impact of blockchain technology on accounting, accountability and assurance processes. Originality/value This study provides initial findings on the potential, costs and risks of blockchain that is beneficial for parties involved in SCF, especially for banks and insurance underwriters. In addition, the findings also provide direction for the contribution of blockchain technology to accounting theory in the future.
The seafood business is now adapting with a number of significant problems, such as supply chain efficiency, sustainability, and traceability. This paper proposes a blockchain-based smart contract for "perfect seafood chain management" to address this process. A novel approach to managing the supply of seafood using blockchain technology is represented by the SeafoodSupplyChain smart contract. The system however, goes beyond the conventional limitation on access based on role. Instead, agreements give stakeholders an adaptable way of petitioning for modifications to their responsibilities, subject to the agreement owner's permission. The agreement also specifies ownership transfers, self-destructive safeguards, and emergency obligations changes. The contract incorporates protections against self-destructive activities to guarantee the integrity of the system, strengthening the security of vital data and processes. After that, the system ensures secure and transparent tracking of seafood movement while efficiently managing roles. By establishing a flexible framework, the "Seamless Seafood Supply Chain Management" contract lays a strong and future-proof foundation for comprehensive and adaptable seafood supply chain solutions. Finally, I will analyze performance of the proposed framework using JMeter. As the industry continues to evolve, this smart contract presents a powerful and transformative tool for seafood businesses to navigate the challenges of the modern era and achieve sustainable growth and success.
Maximiliano Jeanneret Medina, CĂŠdric Baudet, JeanâFabrice Lebraty
This paper aims to explore how does the introduction of blockchain technologies impact trust in existing supply chain relationships. To do so, we conducted a multiple case study through the lens of agency theory. Three Swiss companies which are carrying out blockchain projects for their supply chain have been analyzed in semi-structured interviews and document analysis. Two significant findings of the impact on principal-agent relationships are stressed. Firstly, blockchain technologies can reduce the asymmetry of information, increase the control of agents, and consequently minimize the trust in the principal towards the agents. Secondly and paradoxically, the control mechanisms inherent in these technologies can decrease the agent's trust in the principal. Thus, questioning trust is necessary, both as an antecedent and an unexpected consequence when adopting blockchain technologies. Finally, we provide guidelines for initiating the adoption of blockchain technologies in supply chains.
Prateek Sethi, Tri Nguyen, Mayukh Roy Chowdhury, Susanna Pirttikangas ¡ 5 authors
Blockchain technology relies on Peer-to-Peer (P2P) ledgers that require a mechanism to maintain security and ensure consensus. The Proof of Work (PoW) consensus algorithm requires participants to dedicate significant computation to solve a cryptography puzzle. The Proof of Work Difficulty (PoW-D) in large public blockchains, such as Ethereum, is adjusted based on the time taken by the winning miner to mine the last block since the system is unaware of the computation power in the blockchain. The consortium and private blockchains provide greater visibility of the nodes involved, which may have variable compute power over time. Such heterogeneity in miners makes it challenging to maintain fairness leading to super linear profits. To address these issues, we propose two novel Reinforcement Learning (RL)-based techniques to intelligently select miners and adaptively update the PoW-D based on the variable compute power of the heterogeneous miners - RL based Miner Selection (RL-MS) and RL based Miner and Difficulty Selection (RL-MDS). Compared to the existing PoW techniques, the proposed approach lowered the winning percentage of the miners below a fairness factor threshold. Furthermore, the block mining time constraint violation is significantly reduced by up to 97% and up to 85% in RL-MS and RL-MDS, respectively.
The floral supply chain is one of the most delicate logistics networks in existence, requiring intensive monitoring of temperature, humidity, and product conditions to ensure the quality of flowers. However, the traditional centralized supply chain involves exchanging information back and forth, and therefore wastes time, money, and resources. In addition, centralized data control without security verification exposes logistics information to the risk of hacking, information tampering, and counterfeiting. Blockchain technology offers decentralization, immutability, and encryption security. Furthermore, application of Internet of Things (IoT) technology has made it easier to monitor goods and the distribution process. Combining the above two new technologies can effectively improve the transparency and traceability of the floral supply chain and make transactions more secure through the digital signature verification process. In this research, we propose a smart contract for the floral supply chain. Through contract compilation, the proposed contract defines the delivery process status, delivery specifications, and other conditions in the shipping process so that the status of the goods is updated on the blockchain, giving the supply chain higher traceability. This study also defines the process for and conditions of money transactions between buyers and sellers using such smart contracts, thereby automating the transaction, improving its efficiency, and saving on labor costs and paper waste. This research also compares the proposed smart contract to traditional transaction methods. The pros and cons are thoroughly discussed, offering significant benefit to decision makers.
Abstract Artificial intelligence and blockchain technology have become indispensable in the era of the digital economy, particularly in the field of financial financing. However, when it comes to supply chain finance (SCF), existing models primarily focus on risk identification and credit evaluation, neglecting the critical aspects of trust transfer continuity and reliability within the chain. To address this issue, this paper proposes a blockchain-based transitive trust model for SCF, which ensures seamless trust transfer from core enterprises to bottom suppliers during financing enterprise credit evaluation. The model utilizes multi-layer metrics to calculate the comprehensive trust value of underlying suppliers, serving as the basis for credit delivery. Additionally, the model stores transitive signature receivable warrants on the blockchain and utilizes splittable delivery of warrants to underlying suppliers. The modelâs rationality and correctness are verified through experimental analysis, with results demonstrating that the transitive trust model enhances Small and Medium-Sized Enterprisesâ (SMEs) trust at the bottom of the supply chain, thus alleviating financing difficulties for SMEs.