Exploring Blockchain and Supply Chain Integration: State-of-the-Art, Security Issues, and Emerging Directions

The growing complexities in supply chain management, driven by internationalization, decentralization, and modernization, are increasingly threatened by data breaches, network intrusions, and software vulnerabilities. Business stakeholders are turning to blockchain technology as a possible solution to improve modern supply chains’ reliability, integration, and visibility. Blockchain provides a robust framework that supports product traceability, seamless system integration, and enhanced transparency across operations. However, despite its transformative potential, integrating blockchain into supply chain management (SCM) introduces new security risks. These include threats to the confidentiality of blockchain transactions, as attackers may employ techniques like transaction linkage and deanonymization. This paper explores the specific security challenges related to blockchain-based SCM systems, including risks related to SCM, Internet of Things (IoT) system attacks, and blockchain system vulnerabilities. Additionally, the paper presents a case study on securing the drug supply chain through blockchain technology, focusing on attribute-based identity management and zero-knowledge proofs (ZKP) to bolster security and transparency. This approach highlights how blockchain can enhance data privacy, improve access control and identity management, protect information integrity and traceability, and reduce the risk of counterfeit products throughout the supply chain. The paper provides valuable guidance and outlines potential directions for future research in blockchain-driven security and associated issues for supply chain networks, offering a clear roadmap for researchers.