If you thought blockchain was limited only to supporting digital tokens, you might need to rethink. In fact, according to a recent Binance report, “Visa launched a U.S. stablecoin settlement pilot using Circle-issued USDC on Solana to enable faster, 24/7 fund transfers without changing the consumer card experience.” This is just one of the many ways blockchain is powering real-world solutions, and in the supply chain, things aren’t any different. You actually may be surprised to learn that, according to Grand View Research, the global blockchain supply chain market has already exceeded $2.2 billion. Looking ahead, the market is expected to reach $192.9 billion by 2030, growing at a 88.8% CAGR.
And this is because supply managers are using the technology in various ways, including reducing emissions. But as much as companies are working hard to reduce their environmental impact, tracking emissions can be quite challenging.
Blockchain is built in such a way that you can record the carbon footprint in real time across different points in the chain. For example, you can place sensors at key locations in your factory to record energy consumption during production. With this data on a blockchain, every stakeholder can see the same, verified version of the truth. No spreadsheets passed back and forth.
No retroactive estimates done months later. Rather, emissions data become time-stamped and extremely hard to manipulate. Decentralized systems work well with IoT devices. Think GPS trackers on trucks that measure fuel use, or sensors that monitor temperature-controlled shipping.
Once connected to a blockchain, these devices can automatically log data without human intervention, which, in turn, results in fewer errors and faster reporting. Innovations like VeChain have made such real-time tracking practical. Using smart chips, QR codes and RFID trackers to link items to the blockchain, VeChain enables businesses to track products in real time. And while it initially focused on logistics, it’s now a full-featured Layer 1 network, supporting non-fungible tokens, decentralized applications and smart contracts. As such, it shouldn’t be a surprise that big names like BMW and Renault actually collaborate with VeChain.
Carbon credit trading programs are one way many companies address their environmental impact issues. This often entails purchasing credits to help offset emissions. But as you may know, issues like fraud and double-counting have become so popular in the carbon credit market. In a recent Australia Institute report, analysts found that more than $1 billion in credits were worthless. But thanks to blockchain, these challenges can be a thing of the past. The decentralized technology provides a transparent way to ensure credits are counted only once. It also ensures that each transaction is verified. Chia Network and CarbonX are real-world examples of blockchain-based platforms working to bring transparency to carbon markets.
Decentralized systems can also help companies align with circular economy principles. Since these systems enable tracking the lifecycle of materials, they could help ensure waste is recycled wherever possible. In this way, a company is able to reduce its environmental impact and achieve its sustainability goals.
So, can blockchain help track and reduce supply chain emissions? Of course, it can! It does so by creating a tamper-proof digital ledger in which emission data is recorded transparently and shared with all stakeholders. With these actionable insights, it becomes easy to identify inefficiencies and implement corrective measures to reduce environmental impact.
Blockchain is expanding beyond digital tokens into practical supply chain solutions. The global blockchain supply chain market has already surpassed $2.2 billion and is forecast to reach $192.9 billion by 2030, growing at 88.8% CAGR. By linking IoT sensors at key production and logistics points to a blockchain, energy use and other emissions data become time-stamped and verifiable, giving all stakeholders a single source of truth. VeChain demonstrates real-time tracking by linking items with smart chips, QR codes, and RFID trackers to the blockchain. What started as a logistics aid has grown into a full Layer 1 network supporting tokens, decentralized applications, and smart contracts, with BMW and Renault among its partners.
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