Use of Blockchain Technology as a Prospect Element of Management in Product Traceability Systems

Abstract

Blockchain technology in recent years becomes more and more popular and up-to-date theme in the world. The main issues on the functioning of the blockchain technology and the importance of introducing of products traceability systems on its basis are investigated. Blockchain is a distributed database whose essence is a constantly increased amount of counterfeiting with appropriate digital data encryption systems. The deployment and use of blockchain technology allows the final consumer of any food product to be convinced of the safety of the product, have information on the place of origin of the product, information about the passage of goods through all stages of the expanded reproduction cycle, preventing the forgery of products. For interested persons, in particular stakeholders and regulators, the deployment of this technology will allow to find weak links in logistics processes, to improve funding, to constantly improve the quality control system, monitor the highlights on compliance with legislative and certification requirements. Thus, this will improve the work of agricultural producers, as it will exclude from the supply chain of false and unnecessary intermediaries and will promote better sales of products. From the positions of investors, blockchain technology are also interesting, because it helps to provide transparency of all stages of business processes, as well as to have a perspective vision of export opportunities for individual participants and the agrarian industry in general. The main attention of the research is emphasized on the need to use agricultural and other products traceability systems in the supply chain, which should be based on the use of blockchain technology. The tracking of food products, in case of its deployment, will increase the effectiveness of transactions, reducing their bureaucratization and increase the margin of production within the entire supply chain. The importance of the influence of digital transformation processes into the agrarian sector of the economy as an important stage of the new innovation development of our country is emphasized.