Blockchain in global supply chains: A comparative review of USA and African practices

Blockchain in global supply chains: A comparative review of USA and African practices

2024 | Emuesiri Ejairu, Noluthando Zamanjomane Mhlongo, Olubusola Odeyemi, Ekene Ezinwa Nwankwo, Olusegun Gbenga Odunaiya
Blockchain technology is increasingly being adopted in global supply chains to enhance transparency and traceability. This review compares the practices of the United States and African countries in implementing blockchain in their supply chains. The United States has been at the forefront of integrating blockchain into its supply chain processes, emphasizing transparency, traceability, and accountability. Blockchain provides a decentralized and immutable ledger, enabling seamless tracking of goods from origin to the end consumer. Smart contracts automate and streamline contractual agreements, reducing paperwork and minimizing delays. However, challenges include the need for standardized protocols, regulatory frameworks, and overcoming resistance to change within established systems. In contrast, African countries present a diverse and evolving landscape in the adoption of blockchain within supply chains. Several African nations have recognized the potential of blockchain to address issues such as counterfeit goods, fraud, and inefficiencies in logistics. Blockchain offers a decentralized solution that can empower local producers and facilitate international trade. However, challenges in Africa include limited technological infrastructure, varying levels of regulatory frameworks, and the need for capacity building. Collaborative efforts between governments, private sectors, and international organizations are essential to overcome these obstacles. Both the USA and African countries stand to benefit from blockchain adoption in global supply chains. Increased transparency reduces the risk of fraud and enhances trust between stakeholders. The immutable nature of blockchain records ensures data integrity, contributing to the overall resilience of the supply chain. However, successful implementation requires a nuanced understanding of local contexts, regulatory frameworks, and technological capacities. This comparative review serves as a foundation for future research and policy development, shedding light on the dynamic landscape of blockchain adoption in global supply chains across diverse socio-economic environments.Blockchain technology is increasingly being adopted in global supply chains to enhance transparency and traceability. This review compares the practices of the United States and African countries in implementing blockchain in their supply chains. The United States has been at the forefront of integrating blockchain into its supply chain processes, emphasizing transparency, traceability, and accountability. Blockchain provides a decentralized and immutable ledger, enabling seamless tracking of goods from origin to the end consumer. Smart contracts automate and streamline contractual agreements, reducing paperwork and minimizing delays. However, challenges include the need for standardized protocols, regulatory frameworks, and overcoming resistance to change within established systems. In contrast, African countries present a diverse and evolving landscape in the adoption of blockchain within supply chains. Several African nations have recognized the potential of blockchain to address issues such as counterfeit goods, fraud, and inefficiencies in logistics. Blockchain offers a decentralized solution that can empower local producers and facilitate international trade. However, challenges in Africa include limited technological infrastructure, varying levels of regulatory frameworks, and the need for capacity building. Collaborative efforts between governments, private sectors, and international organizations are essential to overcome these obstacles. Both the USA and African countries stand to benefit from blockchain adoption in global supply chains. Increased transparency reduces the risk of fraud and enhances trust between stakeholders. The immutable nature of blockchain records ensures data integrity, contributing to the overall resilience of the supply chain. However, successful implementation requires a nuanced understanding of local contexts, regulatory frameworks, and technological capacities. This comparative review serves as a foundation for future research and policy development, shedding light on the dynamic landscape of blockchain adoption in global supply chains across diverse socio-economic environments.
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