The Technical Application of Blockchain in the Field of Cold

Chain Logistics

Yicheng Wang

Information Security, Nanjing University of Posts and Telecommunications, Nanjing 210023, China

Keywords: Blockchain, Cold Chain Logistics, Information Traceability.

Abstract: While cold chain logistics is not a brand-new technology, it does have certain drawbacks, such as insufficient

product security, limited digitalization in related processes, and high costs. However, the utilization of

blockchain technology in cold chain logistics is a comparatively recent development that offers numerous

benefits. Three fields of applications have been identified based on pertinent research literature: fresh food,

medicine, and food. The precise application methods of merging blockchain with other technologies were

introduced separately. If an emergency blood trading plan is offered, the information monitoring, disclosure,

and traceability functions of fresh items, and the efficient resource allocation plan for food trading are

proposed to obtain maximum benefits. Research has shown that the use of blockchain in conjunction with

other technologies makes information on the chain publicly available, allowing for effective information

querying and monitoring across a range of processes and emphasizing the benefits of lower logistics costs.

Additionally, weaknesses and opportunities were mentioned at the same time.

1 INTRODUCTION

As a special supply chain system, cold chain plays an

important part in many areas like food safety, medical

product preservation and economic trade. A special

kind of logistics is called cold chain logistics, which

is defined as "a systematic project in which

refrigerated and frozen foods are kept in a specified

low-temperature environment at all stages of

production, storage, transportation, sales, and

consumption to ensure food quality and reduce food

loss (Dong et al. 2021)." By keeping an environment

at a low temperature, it tries to preserve the safety and

quality of perishable foods and short-term

medications. Cold Chain Logistics (CCL) has a

number of traits, including high implementation

costs, demanding technical support and challenging

monitoring in transportation process. As a result,

perfecting the cold chain presents a significant

difficulty. However, if substantial progress is made,

the advancement of cold chain logistics will have a

profound positive impact on economic trade and the

quality of life in modern society. In terms of the

traditional cold chain logistics, there are some

limitations. For example, because CCL is at an

inadequate level of digitalization, so real-time access

to a wealth of information is impeded, and product

quality and safety are tightly under control (Han et al.

2021). At the same time, in the absence of digital cold

chain logistics, temperature monitoring and

adjustment are delayed, posing a risk to logistics and

subsequently compromising business performance

(Ali et al. 2018).

Blockchain was first proposed by Satoshi

Nakamoto in 2008, since then it has progressively

grown to become a widely recognized technology that

now is being continuously developed, studied and

used in a variety of industries (Sarmah 2018). These

days, cold chain logistics and blockchain are

combined in a lot of technologies. Combining cold

chain logistics with blockchain technology has many

benefits. For example, it can lower transaction costs

by reducing the number of middlemen involved in the

transaction process and streamlining operations

(Mendonça et al. 2021). This not only makes

decentralized and quick public transactions possible,

but it also minimizes costs, saves time on products

transit, and keeps the environment at the proper

temperature while guaranteeing the quality of the

items. Blockchain increases the transparency and

public availability of supply chain data, which

encourages medical facilities to share blood supplies

and optimizes resource use (Kim et al. 2020).

Wang, Y.

The Technical Application of Blockchain in the Field of Cold Chain Logistics.

DOI: 10.5220/0013338000004558

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 1st International Conference on Modern Logistics and Supply Chain Management (MLSCM 2024), pages 461-466

ISBN: 978-989-758-738-2

461

Utilizing blockchain technology can also lead to on-

chain data traceability and monitoring, which makes

it be able to efficiently construct an effective cold

chain logistics and satisfy the needs of several parties

in terms of services (Tian 2017), it can also

minimizing transaction errors and the spread of fake

goods (Agarwal et al. 2022). It is evident that the use

of blockchain technology is crucial for cold chain

logistics, and cold chain logistics can be greatly

improved.

However, these innovations are still in the early

stages of development, and before they can be used,

more must be proposed, tested, and refined.

Therefore, it is necessary to provide a comprehensive

review on how blockchain has been applied in cold

chain logistics. The rest sections of this paper will

make a detailed analysis on how blockchain

technology is being used in cold chain logistics and

offer pertinent potential problems and future

development opportunities.

2 METHODS

2.1 Introduction of Blockchain

Technology

Blockchain creates a distributed database by using

encryption methods to connect a number of

chronologically ordered data blocks. Users start

transactions on the blockchain, broadcast transaction

information publicly, and the network verifies it. This

is the fundamental way the blockchain operates.

Through consensus processes, nodes validate

transactions and matching blocks; if the verification

is successful, the transactions and accompanying

blocks are appended to the blockchain (Puthal et al.

2018). The information is kept open and united thanks

to blockchain's decentralization, consensus process,

and transparency. By joining the transaction data

contained in the block together with their hash values,

it creates a chain that makes it simple to follow any

step in the transaction chain. The data is encrypted for

security and to prevent tampering. This essentially

stops fraudulent transactions because all nodes must

come to a consensus before making any modifications

to the data. However, there are still a lot of

blockchain-related areas that need to be developed

and improved, like how to scale up, improve

information anonymity, efficiently minimize energy

consumption, and further safeguard data security

(Yli-Huumo et al. 2016).

2.2 Blockchain in Medical Cold Chain

Logistics

The application of blockchain in medical cold chain

logistics is an important direction. Kim et al.

proposed a system based on the Hyperledger Fabric

private blockchain technology in the study. It

involves the design and development of a novel blood

cold chain system that facilitates emergency blood

transactions between hospitals and records blood

information via a distributed ledger. The transaction

contains nodes in the blockchain made of participants

and validators, who validate each link of the

transaction, record consensus information on the state

of blood and transaction content, and update blood

inventory information in various hospitals (Kim et al.

2020).

The use of pharmaceutical cold chain

management is the second application. Using

blockchain technology and the Internet of Things to

control the pharmaceutical cold chain is one way to

find a solution. The cloud storage module stores the

pertinent data signatures for registering medications.

The generated drug information will be added to the

blockchain and the registration request will be

verified by the next blockchain platform. Based on

the medicine information in the blockchain, the cold

chain warehouse simultaneously asks the IoT

monitoring module for a data storage address. The

blockchain platform will also authenticate the drug

related information provided by the cold chain

warehouse and write it into the blockchain. Another

strategy is to figure out the ideal level of cold chain

inventory and manage it based on drug storage data

stored in blockchain (Zhang et al. 2021).

2.3 Blockchain in Fresh Agricultural

Cold Chain Logistics

One application addresses the issues of data storage

and transaction permissions in cold chain logistics by

putting forth a multi-mode agricultural cold chain

logistics model based on blockchain data model. In

order to save the file index hash value, Si proposed a

method that first creates a dual structure consisting of

a private chain and an alliance chain. Alliance chains

are used to search and share information, while

private chains are used to collect and store

information. Smart contracts were later created

independently for each of the two chains. Upon

completion of the transaction, the endorsing node on

the smart contract executes the transaction request

that was started by the client and returns the

transaction outcome. After that, the transaction data

MLSCM 2024 - International Conference on Modern Logistics and Supply Chain Management

462

package is distributed to every node for validation

and is updated in the blockchain copy (Si 2022).

Blockchain is also employed in the traceability

system of cold chain logistics for agricultural

products. Tracing the information flow inside the

system is the most essential step. All information

pertaining to the planting, processing, storing,

shipping, and selling procedures is included in this

information flow, including standard product data,

temperature of the surrounding environment, product

quality, intervals of time, and other pertinent

information. The QR code on the box will store these

streams of information. A dual chain structure is also

used by the traceability system. This structure

consists of operation layer, data acquisition layer,

data layer, consensus and network layer, presentation

layer, and user layer. Key blockchain technologies,

like peer-to-peer networks, propagation and

authentication procedures, PoW and PoS consensus

techniques, etc., are included in the consensus and

network layers. It uses two different methods of data

storage: full data is kept in a relational database and

data summaries are kept on the blockchain network

(Zhang et al. 2022).

2.4 Blockchain in Food Cold Chain

Logistics

Zhang et al. suggested a blockchain-based distributed

cold chain logistics system and allocated resources

using the Stackelberg game model. A decentralized

cold chain logistics alliance is formed, bringing

together all the institutions and users involved in

transactions, based on the Hyperledger Fabric idea.

The traceability function can be attained by this

model, and in the end, game theory can be used to

identify the best resource price and quantity that

maximizes gains for all stakeholders (Zhang et al.

2023).

Another application is suggested that it is a

blockchain-based cold chain supply chain system.

There are four layers in this structure: the application

layer, platform layer, data layer, and physical layer.

In addition to the B/S structure and web front-end

interface utilized in the application layer, all food-

related data connected to all operations will be stored

in the chain for simple one-click viewing. This will

give users access to data interfaces that facilitate

information exchange and traceability (Fu & Dong

2023).

3 DISCUSSION

3.1 Advantages of Blockchain

Technology in Different Scenarios

The benefits of blockchain technology in various

industries can be summed up by looking at the study

mentioned above. First, information disclosure can be

achieved by directly storing the status information of

traded products in linked fields in the chain, which is

made possible by the structure and features of

blockchain technology. Consensus methods are

employed by blockchain technology to ensure data

consistency and prevent malicious attacks that alter

data. Data can be swiftly synchronized to the

blockchain, decreasing the likelihood of fraud, when

multiple technologies, such as GPS positioning

systems, are combined to locate the transportation

process and real-time information monitoring is

accomplished through various technologies in the

Internet of Things (IoT). By simply scanning the

relevant QR code, customers can quickly grasp the

details of each product link and subsequently

purchase the item with confidence, all while having

faith in the product's transaction process based on

publicly accessible information. It can increase cold

chain logistics efficiency in addition to stimulating

economic growth and consumption. This is a

thorough examination of the technology.

In terms of the medical field, Kim et al.’s

proposed blockchain-based emergency blood supply

cold chain system design efficiently reduces the time

required for verification and transportation across

several links in accordance with the overall state of

the blood supply, freeing up critical time for patient

rescue (Kim et al. 2020). For patients, blood type

matching and status information are crucial.

Physicians can use donated blood from other

hospitals with confidence thanks to real-time

information sharing and disclosure enabled by IoT

and Hyperledger Fabric technology. Additionally, it

raises the pace at which blood is utilized.

Store drug lifecycle data on the blockchain so that

consumers can utilize timestamps to trace back

depending on certain time points. It is much less

expensive and takes up less room to store hash values

simultaneously rather than the entire original piece of

data.

In terms of the agricultural field, when real-time

data from IOT is coupled with agricultural or

transportation processes, items can be checked

promptly based on quality standards. This allows for

the early use of resources to cultivate the next batch

of products, saving time and money on unqualified

The Technical Application of Blockchain in the Field of Cold Chain Logistics

463

products. Users' purchases of products will rise as a

result, significantly raising the qualification rate of

products exchanged in the market. Consumption is

encouraged by this.

The dual chain structure of blockchain is used in

the process of implementing data traceability.

Enterprises use the private chain for private purposes,

which can achieve information concealment, while

the consortium chain stores hash values for viewing

shared information for simple traceability. The

enterprise's anonymity is further safeguarded by the

difficulty of deciphering the hash value, even in cases

where the information is publicly accessible.

Additionally, the two chains operate separately, have

no effect on one another, and inspire confidence in the

system's security in users.

In terms of the food field, the blockchain's public

data disclosure leverages pre-existing decision

models for thorough analysis, shortens the time spent

by both parties negotiating their objectives ，

effectively maximizing revenues and minimizing

disputes between participants. Additionally, due to

the disclosure of information, it can stop one party

from committing transaction fraud. In addition, it can

guarantee food safety and lower the possibility of

mishaps for both sides.

Analyzing a research model that can be applied to

assess the cost analysis of BC technology at various

application levels in the food cold chain is the

following part. It is a study conducted by Zixuan L et

al. regarding the impact of blockchain and Radio

Frequency Identification (RFID) technologies on

cold chain logistics costs (Liu et al. 2022). They

developed a cost calculation model, and the Fig. 1

displays the final results derived from the data.

It can be concluded that the use of blockchain

technology may successfully cut the cost of cold

chain logistics because the table makes it evident that

the more the percentage of blockchain and RFID

technology applications, the cheaper the cost

compared to not applying them.

3.2 Challenges and Future Work

But as of right now, there are still certain challenges

and restrictions with this technology. For example,

there might be a greater need for computer processing

power. Each link needs computer power sufficient to

meet the requirements for chain data in order to obtain

complete information about the chain. As the number

of links in various cold chain domains increases, so

does the number of verification nodes. As a result,

there is a greater need for processing power to update

and store data nodes.

Secondly, it is found from the entire procedure

that the cold chain needs to store a massive amount of

data. A significant quantity of storage space is

undoubtedly needed if different product kinds and

transaction chain data are saved on the blockchain.

Additional development is necessary to expand the

storage space.

There must be chances and directions for future

development because the current state of affairs

presents obstacles and restrictions. For instance,

conquering current obstacles, overcoming

constraints, and taking on challenges head-on.

Figure 1: Costs in different situation (Liu et al. 2022).

MLSCM 2024 - International Conference on Modern Logistics and Supply Chain Management

464

There are now no defined regulations in this area

due to the ongoing development of blockchain

applications in big cold chain systems; therefore,

industry guidelines and pertinent regulatory

constraints must be harmonized. For instance,to place

restrictions on integrity, utilizing information

transparency to support hierarchical management is a

good method .

At the same time new technological integrations

to automate specific workflows can be added. To

automatically verify the quality of products in terms

of cold and fresh food after monitoring data and

uploading it, CCL based on BC can also utilize

machines or internal programs. If it is practical, the

next future work is to find ways to enhance the

utilization rate of cold chain resources for products by

promptly providing feedback to product responsible

personnel. Or, when paired with AI, robots can take

the place of people in order to do tasks. By doing this,

tasks can be done more accurately and efficiently

while reducing human mistake.

In conclusion, the use of blockchain technology in

cold chain logistics remains relatively new, hence

potentially expanding the technology's potential

applications. For example, expanding application

mode in financial sector.

4 CONCLUSION

The implementation of blockchain-related

technologies in cold chain logistics for

pharmaceuticals, fresh agricultural items, and food is

detailed in this paper, which also introduces

blockchain technology and cold chain logistics. It is

clear from the study of technology applications that

cold chain logistics has benefited greatly from the use

of blockchain technology. Improving the quality of

real life is the ultimate goal, starting with streamlining

and regulating the logistics process, cutting costs, and

effectively meeting the fundamental needs of cold

chain logistics throughout the entire process, like

environmental temperature. All information is then

integrated into the blockchain to achieve information

disclosure and security maintenance. Furthermore,

blockchain still has a lot of issues. Being a relatively

new technology, there are evident problems that need

to be resolved, like the lack of pertinent laws and

industry regulations. If there are weaknesses, there

are certain areas that require improvement. Based on

current research and market analysis, cold chain

logistics supported by blockchain offers high

development potential because the technology is still

in its early stages of research and development and

has not yet reached a large enough user base.

REFERENCES

D. Puthal, N. Malik, S. P. Mohanty, et al. 2018.

Everything you wanted to know about the blockchain:

Its promise, components, processes, and problems.

IEEE Consumer Electronics Magazine, 7(4): 6-14.

F. Tian. 2017. A supply chain traceability system for food

safety based on HACCP, blockchain & Internet of

things. In: International conference on service systems

and service management. IEEE, 1-6.

I. Ali, S. Nagalingam, B. Gurd. 2018. A resilience model

for cold chain logistics of perishable products. The

International Journal of Logistics Management, 29(3):

922-941.

J. W. Han, M. Zuo, W. Y. Zhu, et al. 2021. A

comprehensive review of cold chain logistics for fresh

agricultural products: Current status, challenges, and

future trends. Trends in Food Science & Technology,

109: 536-551.

J. Yli-Huumo, D. Ko, S. Choi, et al. 2016. Where is current

research on blockchain technology? A systematic

review. PLoS One, 11(10): e0163477.

L. B. Fu, C. Y. Dong. 2023. Research on the Construction

of Food Cold Chain Supply Chain System Based on

Blockchain. Chinese Market, (10): 20-23.

P. Zhang, X. Liu, W. Li, et al. 2021. Pharmaceutical cold

chain management based on blockchain and deep

learning. Journal of Internet Technology, 22(7): 1531-

1542.

R. D. Mendonça, O. S. Gomes, L. F. M. Vieira, et al. 2021.

Blockcoldchain: Vaccine cold chain blockchain. arXiv

preprint arXiv:2104.14357.

S. Kim, J. Kim, D. Kim. 2020. Implementation of a blood

cold chain system using blockchain technology.

Applied Sciences, 10(9): 3330.

S. S. Sarmah. 2018. Understanding blockchain technology.

Computer Science and Engineering, 8(2): 23-29.

U. Agarwal, V. Rishiwal, S. Tanwar, et al. 2022.

Blockchain technology for secure supply chain

management: A comprehensive review. IEEE Access,

10: 85493-85517.

X. Zhang, Y. Sun, Y. Sun. 2022. Research on cold chain

logistics traceability system of fresh agricultural

products based on blockchain. Computational

Intelligence and Neuroscience, 2022(1): 1957957.

Y. Dong, M. Xu, S. A. Miller. 2021. Overview of cold chain

development in China and methods of studying its

environmental impacts. Environmental Research

Communications, 2(12): 122002.

Y. Si. 2022. Agricultural Cold Chain Logistics Mode Based

on Multi‐Mode Blockchain Data Model. Computa-tional

Intelligence and Neuroscience, 2022(1): 8060765.

Y. Zhang, C. Li, X. Xin. 2023. Stackelberg game-based

resource allocation with blockchain for cold-chain

The Technical Application of Blockchain in the Field of Cold Chain Logistics

465

logistics system. Computers, Materials & Continua,

75(2): 2429-2442.

Z. X. Liu, J. X. Li, L. W. Song. 2022. Cost Analysis of Cold

Chain Logistics Based on Blockchain and RFID

Technology. Journal of Wuhan University of

Technology (Information and Management

Engineering Edition), 44(1): 75-83.

MLSCM 2024 - International Conference on Modern Logistics and Supply Chain Management

466