Assessing the sustainability of using blockchain technology in supply chain management

Blockchain is an emerging technology that enables data to be stored in a decentralized, peer-to-peer ledger. The interconnected blocks in this ledger are secured through cryptography and validated via a consensus mechanism, ensuring data immutability and transparency across the network. Integrating blockchain technology into supply chain operations presents opportunities to enhance efficiency, transparency, and traceability. However, implementing and operating this technology in supply chains demands substantial computational resources and leads to notable energy consumption. Thus, it is essential to investigate the sustainability aspects of utilizing blockchain technology in this context, considering both the size of the supply chain (i.e., stakeholders) and the transaction volume. This study examines the relationship between supply chain entities, transaction volume, energy consumption, and computational resource utilization. An Ethereum network-based supply chain testbed, operating using a Proof-of-Authority algorithm, was developed to assess the sustainability of blockchain-enabled supply chains. The testbed is run under various conditions simulating typical supply chain operations. The results offer insights into the sustainability implications of deploying blockchain technology in supply chain management.