Volume 8, Issue 4, April – 2023 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Supply Chain Management Using Blockchain

Mr. Prashant Kumar 1, Abhishek Bhardwaj2, Pushpendra Kumar3, Suman Gupta4, Adnan5
Assistant Professor, Department of Computer Science and Engineering1 Students, Department of Computer Science and
Engineering2,3,4,5
ITS Engineering College, Greater Noida, UP, India

Abstract:- Yes, that's correct! The paper proposes a Keywords:

solution that utilizes blockchain and AI technologies to ● Blockchain
ensure the secure and transparent distribution of medical ● Ethereum
drugs across the supply chain. The system employs smart ● Smart contracts
contracts and a Rasa chatbot integrated into a Flutter app ● Product traceability
to enable ordering and traceability of medicines. ● Supply chain
Additionally, the system includes a blockchain-based ● Drug counterfeiting
credit evaluation mechanism to enhance the
trustworthiness of the supply chain participants. The I. INTRODUCTION
smart contracts are deployed on a local blockchain
provided by Ganache, and the DApp is connected to the A supply chain is a network of organizations involved in
blockchain using Web3.js and Truffle framework. various processes that produce products and services for the
end customer. Global supply chains are complex and involve
The system also includes trade chain and information multiple borders, transactions, and knowledge. In 2018, global
chain platforms to construct an overall framework of the merchandise exports amounted to $19.48 trillion, while more
supply chain system. Platform interaction rules are than $16 trillion worth of goods are shipped across
formulated to standardize the system information international borders each year, with an estimated yearly cost
exchange format and ensure the stability and efficiency of of $1.8 trillion. Removing barriers in the international supply
system interaction. Smart contracts are a type of digital chain could boost the global economy by almost 15% and
contract that is designed to automatically execute create new job opportunities.
predefined actions when certain conditions are met. In the
context of supply chain systems, smart contracts can be In supply chains, products are owned by different
used to facilitate and manage transactions between organizations at various stages until they reach the end
different parties, as well as to ensure the accuracy and consumer. For products with lower added value, such as
integrity of supply chain information. By using smart agricultural commodities and some mining commodities, the
contracts, supply chain stakeholders can improve the supply chain serves as a way to aggregate goods from many
efficiency of their interactions, reduce transaction costs, small-scale producers and deliver them to larger-scale partners
and enhance the security and reliability of their data. for further processing into final products.

The experimental results show that the proposed The traditional supply chain model starts with
system is feasible and comparatively more secure than manufacturers and importers sending products to the next
existing systems. While the system realizes the basic stage, which is the middle layer that includes wholesalers. The
functions of the supply chain, it also promotes the sharing middle layer processes the products received from
of information between participants and improves its manufacturers and importers and then supplies them to the last
efficiency. step, which is the retailer or food service that sells products to
consumers. However, the main problem with this model is that
Summary of the text: The text discusses the the data is not easily accessible to all participants in the supply
application of blockchain in supply chain management, chain, including consumers. This makes it difficult for
specifically for product traceability, and mentions the use consumers to verify the origin and quality of the products they
of smart contracts to automate processes. The problem of purchase.
drug counterfeiting is highlighted as a particular area
where blockchain can provide benefits. The integration of The current supply chain systems do not provide reliable
artificial intelligence and Rasa is also briefly mentioned. data to consumers, and the problem is even more complex in
The text concludes by emphasizing the need for further global supply chains. To establish a trustworthy system,
research and development in the practical applications and blockchain technology has emerged as a disruptive solution.
architectures of blockchain in supply chain management. By transitioning to blockchain-based supply chain solutions, it

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Volume 8, Issue 4, April – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
is possible to overcome the challenges faced by the existing blockchain allows participants with permission to retrieve
supply chain models. Participants in a blockchain integrated transactions. [5]. Supply chain participants consist of
supply chain have defined roles, and the tipping point for manufacturers, suppliers, storers, logistics providers,
adoption of this technology is expected to be when 10% of processers, etc., each of them has terms and conditions among
global GDP is stored on blockchain ledgers by 2027. participants. Smart contracts on blockchain technology enable
the implementation of supply chain rules and facilitate
This paper provides a comprehensive overview of the automated execution of transactions between different parties
potential benefits, obstacles, and potential areas of involved in the supply chain. A supply chain that uses smart
investigation related to the integration of blockchain contracts can simplify processes for multiple parties involved
technology in supply chain management. Our aim is to by requiring their digital signatures for agreements, shipments,
provide a foundation and roadmap for future research in this and compliance checks. For instance, a manufacturer can send
area. a shipment after receiving an order from a supplier, and a
regulatory authority can ensure compliance for components of
II. BLOCKCHAIN a product[7].

In simpler terms, blockchain is a way to store A smart contract is just another software program that
information across a network of computers, without relying on constitutes a set of conditions and is executed automatically
a central authority or intermediary. Put differently, a once those conditions are met. (Blockchains can be utilized for
blockchain system operates in a decentralized manner, where various purposes, including the transfer of funds, ownership,
no single entity has full control or authority over the entire and executing the terms of a contract, among others).Various
network. Satoshi Nakamoto is credited with originating the programming languages can be used to create smart contracts
concept of digital currency using blockchain technology[1]. on blockchain networks. Some of the popular programming
Since then, blockchain has evolved and holds promise in many languages used for writing smart contracts include Solidity,
different domains, thanks to its ability to provide security, Rust, Yul, Vyper, and DAML. Each of these programming
traceability, and transparency. The way blockchain works is languages has its own syntax, semantics, and features that
that every transaction is turned into a hash; the hash is enable developers to create smart contracts with different
dependent not only on current transaction but also on previous functionalities and capabilities. So, in other words, different
hashes [2].After a transaction is confirmed by miners, it is blockchain code languages such as Solidity, Rust, Yul, Vyper,
recorded on the blockchain in the order that it occurred, and DAML can be utilized to write smart contracts[8].
creating an unalterable and time-stamped ledger of all Another benefit of smart contracts is decreasing risk, and cost,
transactions. A blockchain is formed by connecting individual removing intermediaries on one side, and increasing accuracy,
blocks in a chronological order, where each block is linked to speed, and real-time updates in business process on the other
the one preceding it.. Blockchains are distributed databases side.Smart contracts are digital programs that can be self-
that store information Blockchain is a technology that operates executing, self-enforcing, and governed by business logic
on a network of computers, known as nodes, and allows for among multiple parties. In other words, once a smart contract
decentralized storage and peer-to-peer transactions. The data is deployed on a blockchain network, it can automatically
in a blockchain is replicated and updated on all nodes in real- execute its code based on predefined rules and conditions,
time, ensuring that all copies of the database remain consistent without the need for intermediaries or human intervention.
and up-to-date. What makes blockchain secure is that the data The code of the smart contract is designed to enforce the terms
is stored on multiple computers, therefore, a major security and conditions of the agreement between the parties involved,
breach would require data corruption on a multitude of and it cannot be altered or manipulated once it is deployed.
computers [3].To tamper with the data stored in a blockchain, This makes smart contracts a secure and reliable way for
a hacker would need to modify the hash of each block that parties to transact with each other without the need for trust or
comes after the targeted block. This is because the hash of intermediaries.[9]
each block is dependent on the data in the previous block, and
any alteration to the previous block would result in a different The second section of our paper aims to provide context
hash. Therefore, the integrity of the entire blockchain is by giving a brief overview of the history of blockchain. This is
maintained and it becomes extremely difficult for a hacker to done to help readers understand how blockchain technology
tamper with the data in the blockchain[4]. has evolved over time and how it has become an important
aspect of various industries and sectors. The section covers the
Public blockchains allow anyone to participate in the early beginnings of blockchain technology, including the
network and add transactions, while private blockchains creation of Bitcoin in 2009, and its subsequent adoption by
restrict participation to a select group of users who have various communities.
permission to add transactions. Open vs. In other words, a
closed blockchain restricts access to only participants with It also discusses the development of other blockchain
permission to retrieve transactions, while an open blockchain networks, such as Ethereum, and how they have expanded the
allows full public access to retrieve transactions. A closed capabilities of blockchain technology beyond just

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Volume 8, Issue 4, April – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
cryptocurrency transactions. The section also touches upon the in supply chain operations. This architecture enables
challenges faced by blockchain technology, such as scalability interaction between the IoT device, cloud, and blockchain,
and security, and how various solutions have been proposed to allowing for a more efficient and secure way of tracking and
address them. recording data on the blockchain.

Overall, section 2 serves as a foundation for the rest of The web application and dashboards are designed to
the paper, providing readers with a broad understanding of the provide an easy-to-use interface for users to interact with the
history and evolution of blockchain technology. In section 3, blockchain and view the data recorded on it. The technical
our paper discusses how blockchain technology can be utilized design ensures that the software is secure and reliable, with
in smart contracts to transform traditional, centralized supply features such as encryption and data backup implemented to
chains into more efficient and secure systems. The section also safeguard against cyber threats.
highlights how blockchain can be used in conjunction with The libraries used in the development of the software
IoT devices to create a more robust and reliable system for enable seamless integration with the Solana blockchain,
tracking and recording data. allowing for efficient and reliable transactions. The section
provides an overview of the technical architecture of the
Section 4 of the paper focuses on the fundamental software, including the various components and their
requirements for selecting a suitable blockchain network. functionalities.
These requirements include considerations such as
transactional fees, data transfer rates, data security, the ability Overall, section 6 highlights the potential of blockchain
to write and execute smart contracts, and the availability of technology in creating robust and secure software solutions.
software development kits. These factors are crucial in By leveraging the Solana blockchain and implementing best
determining the feasibility and suitability of a particular practices in software development, the prototype software
blockchain network for a specific use case or application. developed in this study demonstrates how blockchain
technology can be used to enhance supply chain management
The section delves into each of these requirements in and other applications. The web application and dashboards
detail, discussing their significance and impact on the overall are designed to provide easy and intuitive interfaces for users
performance and functionality of a blockchain network. By to interact with the blockchain and view the data recorded on
providing this information, section 4 aims to guide decision- it. The technical design of the software ensures that it is secure
makers in selecting the most appropriate blockchain network and reliable, while the use of libraries facilitates integration
for their specific needs and requirements. with the Solana blockchain, making it easier for developers to
build blockchain-based applications..
various blockchain networks and places emphasis on the
Solana blockchain.Section 5 of the article details a prototype
blockchain software architecture that focuses on traceability in
smart contracts. The proposed architecture utilizes the Sigfox
platform for IoT, which enables seamless communication
between IoT devices, cloud, and blockchain.

The architecture is designed to ensure that data recorded

on the blockchain is transparent, tamper-proof, and traceable.
The Sigfox platform plays a crucial role in facilitating this by
providing secure and reliable connectivity between the IoT
devices and the blockchain network.

The section provides an in-depth technical overview of

the software architecture, including the components involved,
the interactions between them, and the protocols used for
communication. The section also discusses how the prototype
was implemented and tested, highlighting its strengths and
limitations.

Overall, section 5 demonstrates the potential of

blockchain technology to enhance traceability in supply chain
management and other industries. By leveraging the Sigfox
platform for IoT, the proposed architecture provides a robust
and secure framework for tracking and recording data on the Fig. 1. Participants and their roles in a typical blockchain
blockchain, enabling greater transparency and accountability integrated supply chain flow

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Volume 8, Issue 4, April – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
III. EVOLUTION OF BLOCKCHAIN By leveraging blockchain technology, these stakeholders
can securely and transparently share data and information with
Over the past decade, blockchain technology has seen one another, allowing for greater collaboration and efficiency
rapid progress and evolution. The emergence of Blockchain in the supply chain. This can include everything from tracking
2.0 and Blockchain 3.0 has played a significant role in this the origin and quality of raw materials to monitoring the
progression. Blockchain 2.0 is primarily associated with the transportation and delivery of finished products.
development of smart properties and smart contracts, which
are specifically designed for use in cryptocurrency The use of blockchain in supply chain management has
transactions. Popular blockchain networks that fall under this the potential to streamline processes, reduce costs, and
category include Ethereum, NEO, and QTUM. improve overall transparency and accountability. As a result, it
is expected that more and more parties will become involved
Blockchain 3.0, on the other hand, is geared towards in these transactions as the benefits of blockchain technology
applications beyond just financial transactions. This includes become more widely recognized and adopted. The integration
sectors such as healthcare, logistics, and supply chain of blockchain technology with smart contracts, cloud
management. Blockchain networks that fall under this computing, and Internet of Things (IoT) devices has the
category are designed to provide enhanced security and potential to create smart automated interfaces that eliminate
transparency, while also facilitating automation and efficiency the need for intermediaries or other third parties.
in various non-financial sectors.
By leveraging blockchain technology, smart contracts
Overall, the emergence of Blockchain 2.0 and 3.0 has can be securely and transparently executed without the need
expanded the capabilities and applications of blockchain for intermediaries such as banks or legal institutions. Cloud
technology beyond just cryptocurrency transactions. This has computing can provide a platform for hosting and executing
opened up new possibilities for innovation and development, these smart contracts, while IoT devices can be used to
with blockchain poised to play a significant role in various automate various aspects of the supply chain process.
industries and sectors in the future[10].Today blockchain
applications exist It is not surprising that blockchain The result is a more efficient and streamlined supply
technology has gained significant popularity in the supply chain that is less reliant on human intervention and manual
chain sector and other industries. With increasing processes. With blockchain technology and smart contracts,
globalization and trade, there is a growing need for secure and transactions can be executed automatically based on
transparent methods of exchanging data and information predefined conditions, reducing the need for intermediaries
between different parties. and reducing transaction times.

Blockchain technology provides a decentralized and Overall, the integration of blockchain with smart
immutable ledger that can securely store and share data, contracts, cloud computing, and IoT devices has the potential
making it an ideal solution for supply chain management and to revolutionize various industries, from supply chain
other applications. By leveraging blockchain, supply chain management to healthcare to finance. By eliminating
stakeholders can increase efficiency, reduce costs, and intermediaries and automating processes, businesses can
improve overall transparency and accountability. become more efficient, cost-effective, and transparent. Smart
contracts, which use contractual clauses to perform certain
Moreover, blockchain technology has the potential to actions depending on the fulfillment of those clauses, vastly
provide benefits beyond just supply chain management. It can expand the applications that blockchain can perform. The SC
be used to enhance cybersecurity, streamline financial industry in specific could see a major shift due to this type of
transactions, and improve the efficiency of various business technology because of the automation,
processes. As a result, blockchain technology is being
explored and adopted in various industries, from healthcare to IV. SMART SUPPLY CHAIN
finance to real estate.
A smart environment can be defined as a physical world
Overall, the popularity of blockchain technology is that is seamlessly and invisibly interwoven with sensors,
expected to continue to grow as its potential benefits become actuators, displays, and computational elements that are
more widely recognized and adopted in various sectors. embedded in everyday objects. These elements are designed to
blockchain technology gains wider adoption, it has become collect, process, and transmit data in real-time, allowing for
increasingly common for multiple parties to be involved in a greater automation, control, and optimization of various
single transaction. This is particularly true in supply chain systems and processes.
management, where numerous stakeholders may be involved
in the production, transportation, and distribution of goods. Smart environments can include everything from smart
homes and buildings to smart cities and transportation
systems. They leverage a combination of technologies such as

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ISSN No:-2456-2165
IoT devices, sensors, and data analytics to create intelligent Overall, the integration of blockchain technology with
and connected systems that can improve efficiency, safety, smart contracts in the supply chain industry has the potential
and sustainability. to create a more efficient, secure, and transparent supply chain
ecosystem, reducing costs, improving trust, and enhancing the
In a smart environment, sensors and other devices are overall customer experience. in a secure open environment
interconnected through a network and are able to [13].
communicate with one another to perform various tasks
automatically. For example, in a smart home, sensors can V. SOLUTION FOR PACKAGE TRACEABILITY
detect the presence of occupants and adjust the temperature USING BLOCKCHAIN AND IOT
and lighting accordingly, while also providing data to the
homeowner about energy consumption and other factors. This section discusses a blockchain-based solution for
traceability of packages, such as parcels, produce, or any other
Overall, the development of smart environments has the packaged items. The solution aims to provide a transparent
potential to revolutionize various aspects of modern life, and secure way to track the movement of the package
improving efficiency, reducing costs, and enhancing quality of throughout the supply chain, from the point of origin to the
life for individuals and communities alike. A smart destination.
environment refers to a physical world that is seamlessly
integrated with a network of sensors, actuators, displays, and The solution is built using a combination of blockchain,
computational elements, embedded in everyday objects and smart contracts, and IoT technologies. Each package is
interconnected through a continuous network. This network equipped with an IoT device, which collects data such as
enables the collection, analysis, and processing of real-time temperature, humidity, and location, and sends it to the
data to create intelligent and responsive systems that can adapt blockchain network. The data is then stored on the blockchain
to changing conditions and provide personalized experiences ledger, creating an immutable record of the package's journey.
for users. Examples of smart environments include smart
homes, smart cities, and smart factories, among others. [12]. Smart contracts are used to define the rules and
In the context of a smart SC, this refers to a SC where each conditions for the package's movement, such as temperature
member of the process such as the retailer, producer, and thresholds or delivery deadlines. When these conditions are
distribution centers can interact and communicate with all in- met, the smart contract is automatically executed, triggering
store and in-transit products to form a complete self-sustaining the next step in the supply chain process.
holistic system. An SC becomes “smart” when all parts of the
process can exchange data with one another and make The blockchain network provides a transparent and
decisions based on it. A smart contract consists of value, secure way for all parties involved in the supply chain to
address, functions, and state. Smart contracts in the supply access the package's data. This includes the package sender,
chain industry are designed to automate various processes and recipient, carriers, and any other intermediaries involved in the
enforce predefined conditions without the need for package's journey. By providing real-time access to the
intermediaries or centralized authorities. When integrated with package's data, the solution enables parties to quickly identify
blockchain technology, smart contracts can leverage the any issues or delays in the supply chain and take corrective
decentralization, security, and transparency of blockchain action.
networks to create a more efficient and trustworthy supply
chain ecosystem. Overall, the blockchain-based solution for package
traceability provides a reliable and transparent way to track the
In a blockchain-based smart contract system, a movement of packages throughout the supply chain,
transaction is taken as input and the relevant comparisons are improving efficiency, reducing costs, and enhancing customer
made against predefined conditions. Once the conditions are satisfaction.
met, the code is executed to produce a certain output. This
process is carried out by the blockchain nodes, which work The solution will use an IoT sensor attached to the
together to verify and validate the conditions, as well as to package which will send signals to Sigfox Gateway. This data
record the transaction on the blockchain ledger. is being sent using UNB (ultra-narrow band) having
bandwidth of 100 bps (Bits Per Second) and 600 bps [22]. The
Because blockchain networks are decentralized and web application that we have developed will communicate
secure, the use of blockchain-based smart contracts can help to with the Sigfox cloud gateway using a JSON API. This API
reduce the risk of fraud, errors, and disputes in the supply allows the web application to send and receive data from the
chain. Transactions are transparently recorded on the Sigfox cloud gateway in a structured format that can be easily
blockchain ledger, allowing all parties involved in the supply processed and interpreted by both systems.
chain to have a real-time view of the transaction history and
ensuring that records cannot be tampered with or manipulated.

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By using a JSON API, the web application can [3]. T.K. Dasaklis, T.G. Voutsinas, G.T. Tsoulfas, F. Casino,
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