Supply Chain Tracking
Using blockchain to trace products from origin to consumer
The Traceability Problem
When you buy coffee labeled "ethically sourced" or fish labeled "sustainably caught," how do you know it's true? When a food contamination outbreak occurs, how quickly can we trace it to the source?
Traditional supply chains involve many parties—farmers, processors, shippers, distributors, retailers—each keeping their own records. Data is siloed, formats differ, and verifying claims requires trusting each party in the chain.
Think of it like a relay race
How Blockchain Helps
When goods change hands, that transfer is recorded on the blockchain. The record can include location data, timestamps, temperature readings, certifications, and other relevant information.
Because the record is shared and immutable, no single party can alter history. A producer can't later claim goods were shipped on time if the blockchain shows otherwise.
Real-World Implementations
Food safety: Walmart requires lettuce suppliers to use blockchain tracking. When contamination occurs, tracing that once took weeks now takes seconds. They can identify exactly which farms are affected and pull only those products.
Diamond provenance: De Beers tracks diamonds from mine to retailer, helping ensure they aren't "conflict diamonds" funding violence. Each stone gets a digital record of its journey.
Pharmaceutical tracking: Counterfeit drugs are a massive problem globally. Blockchain tracking helps verify that medications are genuine and haven't been tampered with in transit.
Why Supply Chain Transparency Matters
- Faster response to contamination and recalls protects public health
- Verified sustainability claims enable conscious consumer choices
- Reduced counterfeiting protects brands and consumers
- Efficiency gains from shared data reduce disputes and reconciliation costs
Limitations to Understand
- •Blockchain records what's entered—if someone lies when inputting data, the lie is recorded
- •Requires participation from all supply chain partners to be effective
- •Integration with physical goods often requires IoT sensors or manual scanning
- •Privacy concerns—competitors can potentially see supply chain details
The Oracle Problem
Blockchain is great at recording data immutably. But how does real-world information get onto the blockchain accurately? This is called the "oracle problem."
Solutions include IoT sensors that automatically record data, trusted third-party verifiers, and economic incentives that punish fraudulent entries. No solution is perfect—this remains an area of active development.
Key Takeaways
- Traditional supply chains have fragmented, unverifiable records
- Blockchain creates shared, tamper-resistant records across all parties
- Real implementations exist in food safety, diamonds, and pharmaceuticals
- Blockchain only records what's entered—garbage in, garbage out still applies
- Getting real-world data onto blockchain accurately (oracle problem) remains challenging