Hybrid Blockchain Traceability for Supply Chain Governance
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Solution Overview
Problem
Current traceability systems face challenges in fully tracking the provenance of materials or components across entire value chains due to incompatible data formats, lack of standardized identifiers, and the need for centralized control in decentralized blockchain architectures.
Innovation Solution
A hybrid blockchain-based traceability system that integrates with Enterprise Resource Planning (ERP) systems to track the provenance of goods, services, and payments. This system uses unique transform transactions to record input and output identifiers during transformation processes, and it supports novel tracking and tracing transactions on the blockchain.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If pure blockchain systems are used for traceability, then immutability and decentralized control are achieved, but the ability to provide centralized control for business governance is lost
Solution Approach 1:
The patent combines centralized control mechanisms with decentralized blockchain architecture by introducing hybrid smart contracts that can operate in both centralized and decentralized modes. This allows the system to maintain immutability while enabling businesses to exercise centralized control when needed for governance purposes.
Solution Approach 2:
The system dynamically switches between centralized and decentralized operational modes based on business requirements. The hybrid blockchain architecture allows control mechanisms to be flexible, providing centralized governance when necessary while maintaining decentralized immutability for traceability records.
2Loss of information
If third-party tracking software is used to correlate supplies and parts, then traceability across companies is enabled, but information security concerns arise as companies may not want to disclose sensitive data to competitors
Solution Approach 1:
The blockchain system acts as a neutral intermediary that enables traceability without requiring direct disclosure of sensitive commercial information between competing companies. The distributed ledger allows verification of supply chain data while maintaining confidentiality through cryptographic techniques and controlled access mechanisms.
Solution Approach 2:
The system creates verified copies of supply chain data on the blockchain that can be shared across companies without exposing proprietary information. Companies can verify the authenticity of their suppliers' data through the blockchain without needing to share their internal systems or sensitive business data.
3Adaptability or versatility
If companies force suppliers to conform to common coding schemes, then data compatibility is improved, but collaboration flexibility is reduced
Solution Approach 1:
The blockchain system provides a universal data structure that can accommodate multiple coding schemes and data formats from different companies. The standardized blockchain ledger serves as a common platform that accepts diverse input data while maintaining consistency and compatibility across the entire supply chain network.
Data Source
AI summary
A system and method for tracking the provenance of an item, service, and/or payment is provided. The system includes a transaction processing system for generating and recording a provenance transaction that includes information to track the provenance of an item, service, transformation, and/or payment; a blockchain interface for facilitating communication with a blockchain, the blockchain interface configured to store the provenance transaction on the blockchain and to retrieve the provenance transaction from the blockchain; and a search and provenance graph system for generating a directed graph to represent the provenance of an item, service, and/or payment using the provenance transaction stored on the blockchain.