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The Role Of Blockchain In Supply Chain Management: A Study On Ethereum (ETH)

24 February، 2025 CRYPTOCURRENCY

Blockchain’s role in supply chain management: a study on Ethereum (ETH)

While the world moves toward digital transformation, the concept of managing the Supply Chain (SCM) is becoming increasingly important. With the emergence of e -commerce and global trade, companies are facing new challenges in management efficiently from supply chains. One solution that has gained popularity is blockchain technology, which provides a safe, transparent and decentralized platform for goods monitoring through each phase of production, transportation and storage.

In this article, we will explore the role of blockchain in SCM using Ethereum (ETH) as a study case. We will examine how ETH’s exclusive features and skills can be used to improve supply chain management, identify possible challenges, and provide information about the future of blockchain -based logistics.

What is the blockchain?

Blockchain is a decentralized digital master book that records transactions on a safe and transparency computer network. Use encryption to ensure the integrity and authenticity of the data, making them resistant to tampering and censorship. The first blockchain platform was launched by Satoshi Nakamoto in 2008, such as Bitcoin, but since then several other cryptocurrencies have been developed using different protocols.

Blockchain’s role in supply chain management

Blockchain technology has numerous advantages that can be applied to supply chain management, including:

  • Safe and transparent tracking : blockchain allows the creation of a proof record to tamper with the movement of goods through the supply chain, allowing companies to monitor their products of materials for end customers.

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  • Improvement of trust

    : Blockchain’s decentralized nature ensures that all parties involved in the supply chain have the same access to the information and verification of the property.

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Ethereum (eth) as a study case

Ethereum is a decentralized open source blockchain platform that allows you to distribute intelligent contracts on your network. Intelligent contracts are self-execution contracts with specific rules and conditions connected to them, which can automate various processes such as payment processing, data storage, and supply chain management.

How Ethereum affects supply chain management

In the context of supply chain management using Ethereum (ETH), here are some ways in which it affects logistics:

  • Intelligent Payment Processing Contracts : Ethine smart contract functionality allows companies to create automated payment systems capable of solving transactions without intermediaries.

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Challenges and limitations

Although blockchain technology offers numerous advantages of SCM, there are also challenges and limitations to consider:

  • Scalability : Ethine scalability is still a concern as it can be difficult to process high transaction volumes.

  • Interoperability

    The Role of Blockchain

    : Different blockchain platforms may not interact without a continuity solution, making it difficult to share data between systems.

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