According to data from L2Beat, the Ethereum mainnet has lately regained control over its Layer-2 chains in terms of daily transaction volume. Jamie Coutts, a crypto analyst for Bloomberg, believes that Ethereum’s hash-powered smart contract platform has enormous potential to empower people all around the world. Ethereum is a platform that is primarily used for decentralised finance and cryptocurrency trading, but it may also be used to optimise and reduce risk in supply chains.
Paul Brody, an expert on Ethereum and author of “Ethereum for Business,” discusses how the programmable, hashed tokens of the peer-to-peer network can offer an effective solution for supply chain management. The value proposition of traceability for the majority of consumer items lies in source verification and fraud prevention. The capacity to swiftly track faulty ingredient batches along the supply chain is crucial in industries like pharmaceuticals, where counterfeiting can literally mean the difference between life and death.
Industrial supply networks can increase the efficiency and quality of their data by utilising blockchain. Ethereum can potentially facilitate the transition to a zero-carbon future with tokenized carbon-reduction trade programmes and caps. According to Brody, cap-and-trade regulations force businesses to manage their overall carbon production, and regulators are aiming to start measuring and managing carbon footprints globally. Ethereum can assist by standardizing terminology, limiting the issuance of tokens to companies with inspected and confirmed processes, and guaranteeing that every token for emissions or offsets can be tracked back to an original emitter.
There are other blockchain smart contract platforms that have a place in the supply chain besides Ethereum. A Georgian artisan winery used Cardano in 2021 to develop supply chain traceability and anti-counterfeiting measures. Solana, a competitor to Ethereum, is a great option for supply chain management due to its cheap costs and high throughput.