Digital Asset Traceability for True Mass Balance in Supply Chains
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Solution Overview
Problem
Existing supply chain systems lack comprehensive traceability, particularly in tracking product origins and transformations, and fail to account for process specifications and true mass balance, leading to inefficiencies and fraud.
Innovation Solution
A blockchain-based system that assigns digital assets to physical commodities, enabling traceability across the supply chain, including process specifications and allowing for a 'fungible' scheme to mix or swap identifiers with identical properties, and implementing a true mass balance.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical identifiers and manual tagging are used to track products across the supply chain, then traceability is achieved, but human errors are introduced affecting accurate traceability
Solution Approach 1:
The patent replaces manual physical tagging with automated digital identification systems. Electronic devices automatically capture product identifiers and transaction data, eliminating the need for manual tagging operations. This substitution of mechanical/manual processes with automated electronic systems resolves the contradiction by maintaining traceability accuracy while removing human error sources.
Solution Approach 2:
The patent creates digital copies of product identification and transaction information that are stored and transmitted electronically throughout the supply chain. Instead of relying on physical tags that require manual handling, the system uses digital replicas of product data that can be automatically captured, stored, and verified, thereby eliminating human error in the tagging process while maintaining complete traceability.
2Reliability
If standardized product identification codes are mandated for suppliers, then product origin tracing is enabled, but managing keys for each SKU becomes challenging
Solution Approach 1:
The patent implements a universal electronic identification system that can handle multiple SKUs and product types through a single standardized digital framework. The electronic device and digital asset system provide multi-functional capabilities that eliminate the need for separate key management for each SKU, resolving the contradiction by enabling comprehensive product origin tracing while simplifying the underlying management infrastructure through universal digital standards.
Solution Approach 2:
The patent introduces a blockchain-based digital asset system as an intermediary layer between product identifiers and traceability requirements. This intermediary automatically manages the complexity of SKU-specific identification through standardized digital assets, enabling product origin tracing without requiring complex manual key management systems. The blockchain intermediary handles the complexity automatically through its distributed ledger and smart contract mechanisms.
3Reliability
If blockchain technology is used to document every supply chain step, then transparency and fraud reduction are improved, but system complexity increases
Solution Approach 1:
The patent segments the supply chain documentation into discrete digital assets representing individual transactions and product movements. Each transaction is captured as a separate digital asset on the blockchain, allowing the system to achieve comprehensive transparency through modular, manageable units rather than requiring complex centralized documentation systems. This segmentation approach maintains reliability while reducing overall system complexity through distributed, independent transaction records.
Data Source
AI summary
The present disclosure relates to the field of supply chain management and traceability through a commodity value chain. More specifically, the disclosure pertains to systems that track and record transactions of digital assets associated with physical commodities, recycling materials or goods using blockchain technology.