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Computer Science

How Blockchain Enhances Supply Chain Management: A Survey

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2020, IEEE Open Journal of the Computer Society

https://doi.org/10.1109/OJCS.2020.3025313
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20 pages

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Abstract

Providing transparency and trust among participants and stakeholders and ensuring an efficient operation are current supply chain challenges. These challenges are difficult to resolve because the records of supply chains may be exposed to alterations by participants. Blockchain technology has been identified as a promising solution to resolve these challenges. In this paper, we introduce blockchain and survey recent blockchain frameworks that address some of the supply chain challenges. We describe the components and operation of these blockchain frameworks. We identify the objectives and motivation in each of the surveyed use cases and highlight the advantages and disadvantages of each adopted framework. We analyze how the reported blockchain frameworks address different supply chain challenges. We present a comparative summary of existing literature on blockchain for supply chain. We also summarize the properties of a blockchain framework for its successful adoption in future supply chains and discuss several remaining challenges and opportunities.

Figures (8)
FIGURE 1. An example of a supply chain.
FIGURE 1. An example of a supply chain.
TABLE 1. Comparison of Permissionless and Permissioned Blockchains
TABLE 1. Comparison of Permissionless and Permissioned Blockchains
FIGURE 2. Components of a blockchain.
FIGURE 2. Components of a blockchain.
TABLE 2. Blockchain Frameworks solving the puzzle, the miner that solves it first is the only one rewarded. Therefore, miners with more computational power have higher opportunity to first solve the cryptographic puzzle, and to be rewarded. However, concentration of com- putational power is not desired as it undermines the decen- tralization principle of blockchain. Ownership transfer of a BTC is represented by a transaction with a set of inputs and outputs. If a client wants to transfer his/her BTCs to another participant, the client must define and sign a transaction that specifies as input the references of the transactions where (NCA) [52], which is essential to achieve decentralization and avoid double-spending in transactions. Dou occurs when a client transfers the ownership o ble-spending f an asset to two or more clients. NCA comprises a PoW algorithm for the proposal of new blocks, the longest chain po icy as block finality mechanism, and the Gossip protocol for dissemina- tion of blocks. PoW is a high-intensity computational al- gorithm where miners solve complex cryptographic puzzles until the required random number is found. PoW demands a high computational load from miners. From all miners
TABLE 2. Blockchain Frameworks solving the puzzle, the miner that solves it first is the only one rewarded. Therefore, miners with more computational power have higher opportunity to first solve the cryptographic puzzle, and to be rewarded. However, concentration of com- putational power is not desired as it undermines the decen- tralization principle of blockchain. Ownership transfer of a BTC is represented by a transaction with a set of inputs and outputs. If a client wants to transfer his/her BTCs to another participant, the client must define and sign a transaction that specifies as input the references of the transactions where (NCA) [52], which is essential to achieve decentralization and avoid double-spending in transactions. Dou occurs when a client transfers the ownership o ble-spending f an asset to two or more clients. NCA comprises a PoW algorithm for the proposal of new blocks, the longest chain po icy as block finality mechanism, and the Gossip protocol for dissemina- tion of blocks. PoW is a high-intensity computational al- gorithm where miners solve complex cryptographic puzzles until the required random number is found. PoW demands a high computational load from miners. From all miners
TABLE 3. Blockchain Frameworks and Supply Chain by Industry and Challenges
TABLE 3. Blockchain Frameworks and Supply Chain by Industry and Challenges

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