Research

Blockchain Based Secure and Transparent Supply Chain Management Systems

By: Avigat Mahajan, CSE, Chandigarh College of Engineering and Technology, Sector 26, Panjab University, Chandigarh, Email- co24313@ccet.ac.in

Abstract

The phrase “blockchain” has to do with the technology which is being applied in order to create decentralized networks so that a tamper-proof ledger can be created by ensuring that all transactions are kept secure in a more reliable way, but without any interference of any kind from a third party. Although the technology has mainly been used in the field of cryptocurrencies, its use in SCM offers a complete revolution towards automation and resiliency of global networks.

Introduction

Trust needs to exist in the current day and age. However, when one thinks of trust within a supply chain, certain problems are bound to come to mind when considering the ability to trust the source of the products, taking into account that all centralized systems can be compromised. Herein lies the importance of the introduction of blockchain technology [1], which takes advantage of attributes like decentralization, encryption, and linking of blocks using hashing. Blockchain technology is applied to make sure that each transaction involving real-world objects goes hand in hand with another transaction made in the digital world.

The Core Mechanics

In other words, the blockchain technology transforms the whole foundation of information management in supply chains by eliminating the reliance on centralized control. Rather than delegating the task of managing the database to a single entity, the decentralized structure leverages both immutability and consensus validation for transaction verification purposes. As a result, intermediaries cease to exist in this regard, which serves as a reliable barrier against any form of tampering and manipulation of data common in traditional databases. Furthermore, considering the fact that all the parties involved will always have access to the same version of the truth, transparency becomes an integral part of the system. On top of that, some operations, including the generation of payments and processing of customs documentation, can be automated via blockchain once specific thresholds are attained.

Operational Impact

However, beyond logistics, there are additional implications of blockchain technology which concern addressing the issues in logistics that tend to hinder international business.

  • Administrative Efficiency [2]: Because of the lack of paperwork and verification agents, the cost of administration is greatly reduced for businesses.
  • Secure Medicine Verification [3]: The function is even more important in the field of pharmaceuticals, where the blockchain technology helps in authenticating medicine to curb the distribution of toxic counterfeit drugs.
  • Real Estate & Identity [4]: Blockchain technology has proven useful in industries such as real estate, where tokenized property titles ensure instant and impossible-to-fake property transfer.

Technological Comparison

The adoption of these systems usually involves the shift from public to private models, emphasizing both privacy and performance.

  • Hyperledger Fabric [5]: The most popular choice for enterprises in general, and supply chain management specifically, because of the extremely high level of privacy possible through “channels”.
  • Ethereum [6]: Although it serves as the DeFi benchmark in terms of public networks, Ethereum can sometimes be inappropriate for large-scale industries because of its relatively slow transaction rates.
  • R3 Corda [7]: This model is usually deployed in financial and trade industries only because of its particular ability to transfer data between nodes point-to-point.

Conclusion

One of the key advantages of using blockchain technology in SCM is the flexibility of the technology. Therefore, it is accurate to refer to it as an enabler for the next decade because of its efficiency and reliability, which results from the use of the technology. Although there are concerns regarding issues such as scalability and costs involved in implementing the technology, it is clear that the technology will transform the digital landscape without making any kind of assumptions. It is expected that global investments [8] in blockchain technology will reach $19 billion by 2027.

References

  1. Priyanshu, S., Kumar, S., & Garg, S. (2024). Blockchain-based data security. Digital Forensics and Cyber Crime Investigation: Recent Advances and Future Directions, 17.
  2. Muhdiarta, U. (2025). Blockchain technology for public administration: enhancing accountability and good governance. International Journal of Innovation and Thinking, 2(1), 39-50.
  3. Hemdan, E. E. D., & Sayed, A. (2025). Smart and secure healthcare with digital twins: a deep dive into blockchain, federated learning, and future innovations. Algorithms, 18(7), 401.
  4. Jamshed, H., Waheed, U., Iqbal, S., Faheem, M., Ashraf, M. W., & Mansoor, Y. (2025). Dynamic smart contracts framework on Ethereum private blockchain for real estate management. The Journal of Engineering, 2025(1), e70063.
  5. Kaushal, R. K., Kumar, N., Kukreja, V., & Boonchieng, E. (2025). Hyperledger fabric based remote patient monitoring solution and performance evaluation. Peer-to-Peer Networking and Applications, 18(3), 105.
  6. Crisostomo, J., Bacao, F., & Lobo, V. (2025). Machine learning methods for detecting smart contracts vulnerabilities within Ethereum blockchain− A review. Expert Systems With Applications, 268, 126353.
  7. SM, B. B., Patil, A. P., Sankarasubramanian, R., Yelaka, S. P., Bhat, S. L., RS, Y., & PLG, R. K. (2026, January). Design and Deployment of a Multi-Party Distributed Ledger Technology for Loan Management Using R3 Corda. In 2026 7th International Conference on Mobile Computing and Sustainable Informatics (ICMCSI) (pp. 6-10). IEEE.
  8. Adeoye, Y., Osunkanmibi, A. A., Onotole, E. F., Ogunyankinnu, T., Ederhion, J., Bello, A. D., & Abubakar, M. A. (2025). Blockchain and global trade: Streamlining cross border transactions with blockchain. International Journal of Multidisciplinary Research and Growth Evaluation, 6(2), 253-265.
  9. Ho, G. T. S., Tang, Y. M., Kuo, W. T., & Tang, V. (2025), “Blockchain‐Based Platform for Information Security and Visual Management in Coffee Trading”, Concurrency and Computation: Practice and Experience, 37(25-26), e70299.
  10. Ho G.T.S., Tang Y. M., Leung K. H., & Tong P. H. (2025), “Integrated reinforcement learning of automated guided vehicles dynamic path planning for smart logistics and operations”, Transportation Research Part E: Logistics and Transportation Review, 196, 104008.
  11. Xue, N., Huo, H., Han, C., Yang, M., Arya, V., Panigrahi, P. K., & Gupta, B. B. (2025). The impact of loan risk compensation policy in the short food supply chain: is blockchain-enabled financing more efficient?. British Food Journal, 127(5), 1831-1847.
  12. Gupta, B. B., Gaurav, A., Arya, V., Waheeb Attar, R., Bansal, S., Alhomoud, A., & Chui, K. T. (2025). Sustainable supply chain security through BEART-based fake news detection on supplier practices. Enterprise Information Systems, 19(9), 2462972.
  13. Karthik V. (2025) The chain of Trust : Securing IoT in Supply Chain, Insights2techinfo pp.1
  14. Kee S.N. (2024) Securing IoT-Based Supply Chains: Blockchain and Phishing Attack Prevention, Insights2Techinfo, pp.1

Cite As

Mahajan A. (2026) Blockchain Based Secure and Transparent Supply Chain Management Systems, Insights2Techinfo, pp.1

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