Adoption of Blockchain Technology to Improve Integrity of Halal Supply Chain Management

Adoption of Blockchain Technology to Improve Integrity of Halal Supply Chain Management

Yudi Fernando, Mohd Ridzuan Darun, Ahmed Zainul Abideen, Daing Nasir Ibrahim, Marco Tieman, Fazeeda Mohamad
Copyright: © 2021 |Pages: 9
DOI: 10.4018/978-1-7998-3473-1.ch172
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Abstract

The fast-growing number of Halal integrity issues has attracted the scholar's debate on improving integrity in practicing the Halal supply chain. To investigate how firms comply with Halal procedures in supply chain may not possibly provide much potential research gaps. The application of technology in improving Halal supply chain management on blockchain technology should be given urgent priority. The aim of this chapter is to explore the possibility to integrate blockchain technology to improve the use of Halal supply chain management. Blockchain technology will help the Halal based oriented firm in the supply chain to trace the source of the raw materials, products, labeling information, and Halal product distribution to strengthen the supply chain networks. Blockchain technology-driven Halal supply chain shall overcome and surpass issues related to Halal integrity and certifications which could also have an impact globally.
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Introduction – “Evolution Of Blockchain Technology”

Blockchain technology was invented by Satoshi Nakamoto along with a few others which still remains a mystery (Kersten, Blecker, Ringle, Hackius, & Petersen, 2017). This technology can help company protect assets, initiate transactions and maintain records between parties in verified chronical events without being hacked or tampered. Blockchain has the potential to change any nation into a cashless entity. A verifiable distributed ledger that records transactions are one of the major concepts of blockchain phenomena (Iansiti, Lakhani, & Mohamed, 2017).

The Blockchain is a chain of orphaned divergent blocks to bring equilibrium inside any digital system (Biais, Bisiere, Bouvard, & Casamatta, 2018). Much focus is now being paid to electronic agreements. Public blockchains applications are constructed into a full digital framework for converting acts and registries. Many governments, personal and economic sector industries are now exploring the possibilities of smart contracts depending on blockchain (Bocek & Stiller, 2018). The success and failure of a key party to handle inter-agency business transactions are no longer necessary. In companies that request safe economic operations, Blockchains are now beginning to affect business management procedures (Mendling et al., 2018).

Blockchain Based Smart Contracts

Smart contracts based on Blockchain offer a decentralized consensus and conduct algorithms that cannot be readily altered. The manner in which any organization functions is entirely reorganized by incredible quintessence and helps create and build better platforms for records and databases with advanced features (Cong & He, 2018). The installation of blockchain-based tracking improves supply chain provenance. The ability to trace and trace the vanity amount of any products can be seen. Counterfeiting and manipulation in global supply chains have now become very simple (Kim & Laskowski, 2018).

Blockchain’s backbone with respect to any smart contracts financial transactions is cryptocurrencies. Pseudonymous payments can be made online using cryptocurrency. They can be used to exchange currencies through a smart contract but somehow exhibit few drawbacks regarding throughput and latency (Eyal et al., 2016). Cryptocurrencies are decentralized currencies which can be used to design and develop a smart property over an internet platform without human interventions. Self-administrating regulations if established could deploy law-abiding self-executing smart contracts. Government and multinational corporates could find it difficult to regulate activities through old means. Hence, there is great need to still refine and fine-tune this cryptocurrency technology (Wright & De Filippi, 2015). Social world can be mediated by decentralized technologies that has the capability to completely transform bureaucratic government models (Reijers & Coeckelbergh, 2018). Cryptocurrency is an irreversible virtual currency that has become more flexible, private and less amenable when compared to other transaction procedures (Böhme, Christin, Edelman, & Moore, 2015).

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