Blockchain-Based Applications for Disrupting and Accelerating Innovation in Organizations and Society

Introduction

Blockchain is a recent technology that has attracted the attention of academics, organizations, and companies around the world. It started to be used for electronic transactions, or digital currencies, more precisely in 2008 (Nakamoto, 2008) with the bitcoin, and proved to be a technology with potential for contexts where one does not want to rely on trust between the involved parts, providing persistence, decentralization, security, and anonymity features (Nakamoto, 2008).

Blockchain may be defined as a decentralized database that works like a fully distributed digital ledger. It stores data in blocks, which are organized in chronological sequence (by using a timestamp) and linked together through cryptographic evidence (Nakamoto, 2008, Wang et al., 2018). The decentralized nature of the technology comes with some inherent handicaps like conditioned efficiency (time, communications, etc.) and storage capacity, and high energy consumption. This has led to the creation of other types of approaches, which maintain the initial idea of the blockchain while minimizing the downsides (Fu et al., 2021, Ferdous et al., 2020).

Nowadays, Blockchain technology (BCT) is being used in many different areas of the society. Traceability of products in a value chain is one of them. Value and supply chains involve many business partners (manufacturing, producers, logistics, transport, etc.), each with their own facilities, sometimes located in different countries or continents. In addition, most of these business partners have their own information systems, which they may sometimes be reluctant to open to other partners. BCT allows sharing selected data among all business partners in a value chain, without them having to trust each other (da Cruz and Cruz, 2020). Its decentralized nature fits perfectly into the implementation of traceability in value chains that are getting bigger and more diversified (da Cruz and Cruz, 2020). BCT is being used for traceability in any type of value chain/supply chain, including food products, electrical and electronic products, pharmaceuticals products, textiles and clothing, etc.

Sometimes, brands that are not concerned with environmental and social sustainability manage to put cheaper products on the market, giving them an advantage over more conscientious brands. Thus, for the end consumer to be able to choose more environmentally friendly and socially fair brands, he/she needs to know what is happening at all stages of the value chain. For this, it is necessary to implement product traceability. In this way, falsifications are also avoided.

According to the World Economic Forum (2019), ensuring traceability of products is essential for providing transparency and building consumer trust in the products and in value chains. Traceability also makes it possible to quickly remove the product from the market in case of a threat to public health, as may happen with food products, toys, cars and many others (Cruz et al., 2019, Oliveira et al., 2021).

Food traceability systems also enable improving quality and sustainability of a food supply chain and new technologies, such as the blockchain may be of help (collaboration with McKinsey & Company, 2019). Food traceability, i.e., the ability to trace registered products, work for the United Nations Sustainable Developments goals, contributing to (collaboration with McKinsey & Company, 2019):

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  Achieve food security and improved nutrition

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  Promote sustainable agriculture and ensure provenance

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  Ensure sustainable consumption and production patterns

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  Reduce waste

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  End hunger