Potential of blockchain technology in wood supply chains
Lukas Stopfer, Alexander Kaulen, Thomas Purfürst
Abstract
Blockchain technology has the potential to revolutionize forestry by providing a secure and transparent method of tracking and verifying the origin and movement of forest products. This could help combat forestry issues such as illegal logging, deforestation, and label fraud. In this study, transparency, and the associated certification of sustainable forest management, as well as proof of legality of raw material is investigated. The adoption of blockchain technology in forestry is still in its infancy, and challenges include ensuring the accuracy of the data stored in the blockchain and the participation of all relevant stakeholders in the supply chain. Overall, blockchain technology offers great potential for successful deployment in the timber supply chain and could help promote sustainability and preserve biodiversity. This paper provides an overview of blockchain technology, considers requirements for forestry and timber industries, discusses necessary digitization aspects and refers to existing applications.