According to CryptoPotato, Ethereum mainnet has recently reclaimed dominance over its Layer-2 chains in daily transaction volume, as per data from L2Beat. Ethereum's hash-powered smart contract platform has immense potential for empowering global citizens, according to Bloomberg crypto analyst Jamie Coutts. The most popular apps on Ethereum are for decentralized finance and trading cryptocurrencies, but the platform can also optimize and de-risk supply chains.
Ethereum expert Paul Brody, the author of 'Ethereum for Business,' explains that the peer-to-peer network's programmable, hashed tokens can provide an efficient solution for supply chain management. For most consumer products, the value proposition around traceability is in the prevention of fraud and the verification of sources. In markets like pharmaceuticals, where counterfeiting can be a life-and-death issue, the ability to trace bad batches of ingredients down through the supply chain quickly is invaluable.
Using blockchain, industrial supply chains can improve data quality and efficiency. Ethereum can even support a zero-carbon future with tokenized carbon-reduction caps and trade programs. Brody states that regulators are working globally to start tracking and managing carbon footprints, with cap-and-trade rules requiring enterprises to manage their total carbon output. Ethereum can help by ensuring that every token for either emissions or offsets can be traced back to an original emitter, standardizing definitions and allowing only firms with inspected and verified processes to issue tokens.
Ethereum is not the only blockchain smart contract platform with a future in the supply chain. In 2021, a Georgian artisan winemaker implemented a supply chain traceability and anti-counterfeiting solution using Cardano. Ethereum competitor Solana's low fees and high throughput also make it an ideal solution for supply chain management.
