The invention relates to a traceability method of power battery cascade utilization based on block chain technology and a system thereof. The method comprises the following steps: packaging the powerbattery information of the first shipment into a head block and adding the head block into the block chain, and broadcasting nationwide, wherein the power battery information comprises one or more ofa factory number, an information ID, a cell material, a nominal capacity, a nominal voltage, a charging cut-off voltage, a discharging cut-off voltage, a standard current, a maximum charging current,a maximum discharging current, a DC internal resistance, an operating temperature, a cell size, a weight, a number of cycles and a healthy state of the battery; when the power battery is traded, packaging the trading information of the power battery into a first trading block for broadcasting throughout the network, wherein all nodes in the network can verify its legitimacy and effectiveness, andthen adding the block into the block chain by a consensus mechanism. The invention realizes the functions of uploading, storing, inquiring, encrypting and decrypting the data of the whole battery supply chain, and the data is open, transparent, traceable and non-alterable.