Timeline of Blockchain

Blockchain gained prominence in 2008 with Bitcoin's introduction, revolutionizing decentralized digital currency (Nakamoto, Reference Nakamoto2008). Its roots trace back to the 1980s with David Chaum's blind signatures (Chaum, Reference Chaum1983), followed by digital timestamping in 1991 (Haber and Stornetta, Reference Haber and Stornetta1991). Hal Finney's Reusable Proof of Work in 2004 laid groundwork for Blockchain mechanisms (RpoW, 2004). Bitcoin's first transaction occurred in 2009 and its first exchange in 2010 (AlShamsi et al., Reference AlShamsi, Al-Emran and Shaalan2022). Smart contracts were proposed in 2013 (Buterin, Reference Buterin2013), and Ethereum launched in 2015 (AlShamsi et al., Reference AlShamsi, Al-Emran and Shaalan2022). The decentralized autonomous organization (DAO) hack in 2016 highlighted security concerns (Santana and Albareda, Reference Santana and Albareda2022). A detailed timeline is provided in Fig. 1. This evolution demonstrates blockchain's rapid growth and its ongoing impact on the world.

Figure 1.

Timeline history of blockchain technology (created in BioRender).

An overview of Blockchain technology

Within the realm of distributed ledger technologies (DLT), blockchain constitutes a secure, sequential collection of data blocks, forming an unalterable and decentralized record that make unauthorized alteration or access nearly impossible (Namasudra et al., Reference Namasudra, Deka, Johri, Hosseinpour and Gandomi2021; Saurabh and Dey, Reference Saurabh and Dey2021; Demestichas et al., Reference Demestichas, Peppes, Alexakis and Adamopoulou2020; Gad et al., Reference Gad, Mosa, Abualigah and Abohany2022). This digital ledger is characterized by an ever-increasing compilation of validated transactional records, verified by the consensus of nodes within the peer-to-peer (P2P) network (AlShamsi et al., Reference AlShamsi, Al-Emran and Shaalan2022; Gad et al., Reference Gad, Mosa, Abualigah and Abohany2022) (Fig. 2). Data within the Blockchain is interconnected through a rigid structure, where each new entry is cryptographically linked to its predecessor, ensuring perpetual data integrity (Demestichas et al., Reference Demestichas, Peppes, Alexakis and Adamopoulou2020; Tripathi et al., Reference Tripathi, Ahad and Casalino2023). Alterations to any block's contents are rendered impossible, as such tampering would invalidate the entire Blockchain's subsequent entries, effectively mitigating the threat of data manipulation. Unlike centralized architectures, Blockchain Technology operates without a single point of control, relying instead on a decentralized framework where consensus protocols govern transactional exchanges among participant nodes to enhance data reliability at the collection, storage, and validation stages (AlShamsi et al., Reference AlShamsi, Al-Emran and Shaalan2022; Tripathi et al., Reference Tripathi, Ahad and Casalino2023). Information within the blockchain is organized in immutable blocks, Data within the P2P network is distributed, ensuring secure and resilient data exchange among clients (nodes) (Demestichas et al., Reference Demestichas, Peppes, Alexakis and Adamopoulou2020; Gad et al., Reference Gad, Mosa, Abualigah and Abohany2022; Tripathi et al., Reference Tripathi, Ahad and Casalino2023), and the nature of these networks diminishes the likelihood of cyber-attacks and illicit activities (Namasudra et al., Reference Namasudra, Deka, Johri, Hosseinpour and Gandomi2021; Vern et al., Reference Vern, Panghal, Mor, Kumar and Sarwar2024). This intrinsic resistance to alteration positions Blockchain as a formidable solution to data integrity issues, particularly in applications where traditional record-keeping systems, such as food and dairy industries, are susceptible to fraudulent modifications of data like transportation histories, ingredient lists, and expiration dates (Gad et al., Reference Gad, Mosa, Abualigah and Abohany2022; Bosona and Gebresenbet, Reference Bosona and Gebresenbet2023). Blockchain technologies are categorized based on accessibility into three types: (1) public blockchains, such as Bitcoin and Ethereum, which are open to all users; (2) private blockchains, where access is limited to invited participants to protect sensitive data; and (3) hybrid permissioned blockchains, which offer a blend of public and private features, granting access after identity verification. These BCT types facilitate tailored traceability systems to meet specific access and privacy needs (Di Pierro, Reference Di Pierro2017; Bosona and Gebresenbet, Reference Bosona and Gebresenbet2023; Tripathi et al., Reference Tripathi, Ahad and Casalino2023).

Figure 2.

The creation process of a new data block in an existing Blockchain network (created in BioRender).

Type of consensus and classification of blockchain

Consensus mechanisms, fundamental to blockchain applications, establish rules for user agreement on system states, facilitated by the blockchain's decentralization (Tripathi et al., Reference Tripathi, Ahad and Casalino2023). The first such algorithm, Proof of Work (PoW), was introduced in the Bitcoin blockchain, with subsequent variants addressing diverse blockchain demands (Santana and Albareda, Reference Santana and Albareda2022). The common consensus approaches in blockchain architecture include: 1- PoW (a consensus mechanism adopted by numerous blockchains, involves solving computationally intensive problems to create new nodes, verifying their solutions effectively), 2-Proof of Stake (PoS, requires ETH-staked validators, akin to PoW miners, who are randomly selected for block creation and validation, upholding the consensus), 3-Proof of Burn (PoB integrates PoW and PoS, utilizing PoW for mining and PoS for randomly selected validators to authenticate mined blocks), 4-Proof of Capacity (PoC assigns mining rights using miners’ pre-stored hard drive space, executing a two-step mining algorithm) (Tripathi et al., Reference Tripathi, Ahad and Casalino2023; Xiong et al., Reference Xiong, Chen, Wu, Zhao and Yi2022). In applied terms, blockchain technology offers a decentralized and immutable record system that enables transparent and secure transactions. In the dairy industry, blockchain can be used to track the journey of dairy products throughout the supply chain, ensuring authenticity, quality, and safety.

Blockchain technology in agri-food supply chain

The secure transmission of protected information is crucial across various sectors of the modern world. In the agricultural sector, stakeholders are particularly concerned with safeguarding their sensitive data against unauthorized access by third parties (Saurabh and Dey, Reference Saurabh and Dey2021). Blockchain technology addresses this need by ensuring data integrity and facilitating confidential data exchanges (Menon and Jain, Reference Menon and Jain2021). It has been well established that the blockchain has enormous potential to improve all aspects of agri-food systems including supply chain and market transparency (Commandré et al., Reference Commandré, Macombe and Mignon2021), traceability, quality, and food chain (Feng et al., Reference Feng, Wang, Duan, Zhang and Zhang2020), finance, payment, insurance, and e-commerce, smart agriculture (Antonucci et al., Reference Antonucci, Figorilli, Costa, Pallottino, Raso and Menesatti2019), and dispersal of subsidies and grants (Liu et al., Reference Liu, Zhang and Dong2022). The primary application of blockchain in the agri-food sector is in the supply chain traceability (Patel et al., Reference Patel, Brahmbhatt, Bariya, Nayak and Singh2023). Additionally, it serves as a valuable tool for detecting food fraud, authenticating food safety, and managing from farm to fork systems (Bosona and Gebresenbet, Reference Bosona and Gebresenbet2023).

Blockchain enhances food safety and consumer trust through instant, tamperproof data sharing, including product batch numbers, production locations, dates, and hygienic and sanitary condition reports (Feng et al., Reference Feng, Wang, Duan, Zhang and Zhang2020; Pakseresht et al., Reference Pakseresht, Ahmadi Kaliji and Xhakollari2022). However, barriers and challenges impede the widespread adoption of blockchain technology in agri-food systems including the complexity of these approaches and cost (Patelli and Mandrioli, Reference Patelli and Mandrioli2020). The first success story in the food industry was that of Walmart and IBM, which began their pilot studies in 2016 to evaluate the possibility of implementing this technology. By 2018 they were already tracking 25 products and by 2019 all lettuce suppliers should incorporate Blockchain systems. This is in response to a series of foodborne disease outbreaks, in this case, associated with romaine lettuce (Corkery and Popper, Reference Corkery and Popper2018). Same principles can be applied to the dairy industry and prevent outbreaks of pathogenic bacteria such as Salmonellosis or Listeriosis.

Blockchain technology in dairy industries

The dairy supply chain begins with milk production and ends with dairy consumption. Its criticality lies in preserving food integrity, preventing spoilage during transit from rural to urban centres, curtailing losses, and consistently supplying nutritional supplements throughout the year (Atmaca and Aydemir, Reference Atmaca and Aydemir2023). It has been demonstrated that blockchain technology within the dairy supply chain establishes transparent and secure production and distribution mechanisms, thereby improving this industry's efficiency and sustainability (Singh et al., Reference Singh, Tiwari and Chaturvedi2024). This innovative technology reduces losses and wastage in the supply chain, enabling the provision of high-quality products to consumers (Gehlot et al., Reference Gehlot, Malik, Singh, Akram and Alsuwian2022; Marchi et al., Reference Marchi, Bettoni and Zanoni2022).

Casino et al. (Reference Casino, Kanakaris, Dasaklis, Moschuris, Stachtiaris, Pagoni and Rachaniotis2020) introduced a blockchain-based model for enhancing the traceability of the dairy supply chain. The authors described the diverse traceability features associated with different stakeholders, processes, and products, as well as their interconnections. They proposed the application of blockchain technology as a decentralized, tamper-evident chain-of-custody system, and smart contracts as a means for automating stakeholder management, processes, and product definition and generation.

Misra and Das (Reference Misra and Das2019) introduced a conceptual framework utilizing blockchain technology to enhance the efficacy and feasibility of electronic governance. This framework comprises a service-oriented architecture for stakeholder data storage, blockchain-based authentication, and transactional capabilities on a ledger, alongside a digital identity framework for oversight. The study conceptualizes the application of this framework within the Indian dairy cooperative sector, highlighting participant benefits such as transactional gains and voting rights. Similarly, a blockchain model for improving milk delivery in Kenya's rural areas is proposed by RAMBIM and AWUOR (Reference RAMBIM and AWUOR2020), establishing the Milk Delivery Blockchain Manager (MDBM) as a decentralized system capturing milk delivery metrics on the blockchain, ensuring data integrity and farmer access to delivery details. The Naitiri Dairy Farmers’ Cooperative (NADAFA) oversees the MDBM, ensuring timely payments to farmers and leveraging a consortium-based network to enhance blockchain solutions for the agricultural community.

Longo et al. (Reference Misra and Das2020) evaluated blockchain technology within the context of the milk processing industry and its supply chain, encompassing dairy farms to retail. The findings indicate that the advantages of a blockchain-driven supply chain can be realized with negligible effects on consumer prices, while the expenses associated with the operation of blockchain, primarily transaction fees, escalate as one progresses through the supply chain's tiers. Regarding the cost of implementation, deploying blockchain technology across the supply chain's stakeholders does not necessitate significant investment. Automated transactions can be processed via mobile devices or computers, which gather data from IoT devices and sensors, structure the data into a transaction, digitally sign the content, and transmit the transaction on the blockchain.

Another study (Makarov et al., Reference Makarov, Polyansky, Makarov, Nikolaeva and Shubina2019) has outlined key trends in deploying blockchain for dairy quality management within logistics and demonstrated that implementing this technology safeguards data integrity, thwarts document breaches, and prevents information tampering in product development and transit. Blockchain mitigates fraud risks, enabling retailers and consumers to swiftly trace a product's origin, enhancing its perceived quality. Additionally, incorporating blockchain into the milk supply chain optimizes operations, curtails monitoring costs, accelerates material and product delivery and reduces transport expenses through minimized delays (Makarov et al., Reference Makarov, Polyansky, Makarov, Nikolaeva and Shubina2019).

Potential benefits of blockchain in the dairy sector

Blockchain technology empowers dairy producers to verify the integrity of purchased inputs and directly sell their products in the marketplace, eliminating intermediaries and ensuring equitable compensation (El Amine and Lamia, Reference El Amine and Lamia2023). Blockchain reduces transaction expenses and guarantees prompt remunerations. However, farmers currently utilize various information storage techniques, leading to inefficiency and challenges in exchanging data with partners. blockchain mitigates these issues by centralizing essential data, including cultivation practices, crop quality, and environmental factors, thereby saving time, energy, and costs (Shingh et al., Reference Shingh, Kamalvanshi, Ghimire and Basyal2020; Varavallo et al., Reference Varavallo, Caragnano, Bertone, Vernetti-Prot and Terzo2022; Nukapeyi et al., Reference Nukapeyi, Bommala, Kondreddy, Amalakanti, Ravi and Konuri2024)Fig. 3.

Figure 3.

Benefits and challenges of blockchain in dairy industries (created in BioRender).

The widespread problem of milk adulteration, especially in densely populated presents serious health hazards. The Blockchain-based decentralized dairy supply chain platform could tackle malnutrition caused by adulterated dairy by establishing an open, unalterable, and eco-friendly dairy supply chain (Shingh et al., Reference Shingh, Kamalvanshi, Ghimire and Basyal2020; Nukapeyi et al., Reference Nukapeyi, Bommala, Kondreddy, Amalakanti, Ravi and Konuri2024). This platform transcends typical traceability, aiming to maintain nutritional content, detect contamination, support dairy farmers’ profitability, deter counterfeits, and boost total revenue (Xu et al., Reference Xu, Guo, Xie and Yan2020). In addition, Customers can readily access data on raw materials, including processing methods, batch details, factory information, and storage conditions, via their smartphones via blockchain technology. This transparency bolsters consumer trust and loyalty (Mohapatra et al., Reference Mohapatra, Sainath, Lal, K, Bhandari and Nyika2023).

Tracing the initial source of dairy food within a supply chain often requires significant time. For instance, the identification of Salmonella contamination took two months (Malik et al., Reference Malik, Kanhere and Jurdak2018). Previously, tracing the journey of agri-foods from the farm to the fork could take over a week using the Walmart System, whereas blockchain technology reduced this time to just 2.3 seconds (Mohapatra et al., Reference Mohapatra, Sainath, Lal, K, Bhandari and Nyika2023). Blockchain technology not only accelerates data tracing but also mitigates inefficiencies associated with heavy paperwork in the food supply chain (Kamilaris et al., Reference Kamilaris, Fonts and Prenafeta-Boldύ2019). An exemplary application of blockchain technology was demonstrated by the Louis Dreyfus Company, which conducted a trade of 60,000 tons of US soybeans to the Chinese government in a week, marking an impressive 80% reduction in transit time (Bogomolov et al., Reference Bogomolov, Popok, Savinskaya and Tyunin2019).

Blockchain technology offers fast and secure payment solutions with minimal expense. Transactions executed via blockchain can be completed in less than 10 minutes since there is no requirement of approval from the bank, which takes a 2–5 day duration of conventional payment methods (Sandeep et al., Reference Sandeep, Maheshwari, Prabhu, Prasanna and Jothikumar2021). Enhanced efficiency in financial transactions within the supply chain is poised to promote improved financial inclusivity in the agri-food sector. Moreover, blockchain's capacity to retain information permanently and securely allows it to serve as a reliable reference for validating recorded transactions. Consequently, the utilization of blockchain ledgers could potentially substitute traditional financial auditing reports, thereby reducing time and resource expenditure (Alkahtani et al., Reference Alkahtani, Khalid, Jalees, Omair, Hussain and Pruncu2021). Implementing blockchain in dairy supply and value chains could streamline the various stages of dairy distribution, underlining the technology's potential benefits for stakeholders within the food supply chain.

Challenges of blockchain in the dairy sector

Currently, blockchain infrastructure is not widely understood, which will delay its full adoption in the dairy sector (El Amine and Lamia, Reference El Amine and Lamia2023). Deficiencies in the necessary infrastructure to support comprehensive blockchain-based food supply chain systems suggest that extensive development is required to establish such systems (Xu et al., Reference Xu, Li, Zeng, Cao and Jiang2022). Blockchain technology must exhibit adequate scalability, speed, and security to fulfil recommended applications (Habib et al., Reference Habib, Sharma, Ibrahim, Ahmad, Qureshi and Ishfaq2022). The advent of 5 G technology promises enhanced data transmission, potentially mitigating blockchain's speed limitations. Despite high development costs, blockchains can offer cost reductions by eliminating intermediaries. While data validation and ledger storage costs represent additional expenses (Shrimali and Patel, Reference Shrimali and Patel2022), these hurdles can be overcome with strategic application design and deployment. Standardization and interoperability in blockchain systems across dairy industries are essential. Establishing blockchain architecture standards is crucial for facilitating secure, collaborative trust, and information exchange. Therefore, achieving compatibility and standardization among diverse blockchain systems presents an ongoing challenge (Xu et al., Reference Xu, Li, Zeng, Cao and Jiang2022).

The decentralized nature of blockchain renders it inherently trustless, as it operates without reliance on a central authority or intermediary (Dupuis et al., Reference Dupuis, Toohey, Grimstad, Follong and Bucher2021). In a trustless system, participants do not need to rely on each other or any single entity for validation; instead, the integrity of the system is maintained through consensus mechanisms and cryptographic proofs (Pandey and Litoriya, Reference Pandey and Litoriya2021). However, the accuracy of the data inscribed on the blockchain is crucial, as it is often entered manually and may lack robust validation measures, potentially leading to inaccuracies (Dupuis et al., Reference Dupuis, Toohey, Grimstad, Follong and Bucher2021). Blockchain data is not fully accessible to consumers; instead, it functions as a supplier's self-audit mechanism (Torky and Hassanein, Reference Torky and Hassanein2020). Thus, during outbreaks, suppliers can use this data to prove compliance to authorities. Utilizing blockchain, consumers can easily access product origin and transportation data without needing specialized devices. However, once data enters the blockchain, modification is not feasible. Transparency will depend on manufacturers’ willingness to share data. Security concerns persist, as there are currently no regulatory frameworks governing blockchain systems, necessitating further advancements to fortify the overall safety of blockchain transactions (Torky and Hassanein, Reference Torky and Hassanein2020; Islam et al., Reference Islam, Rahman, Mahmud, Rahman and Mohamad2021; Peng et al., Reference Peng, Zhao, Wang, Li, Xu and Zhang2023).

One of the primary obstacles confronting the adoption of blockchain technology within the dairy sector encompasses a range of legal and regulatory considerations. For instance, IoT applications often operate under the purview of national legislation, particularly concerning data privacy (Reyna et al., Reference Reyna, Martín, Chen, Soler and Díaz2018). Presently, blockchain technology lacks a definitive legal and regulatory framework, leaving ambiguity in its application. It is imperative to establish a robust legal and regulatory infrastructure that can effectively oversee blockchain utilization in the dairy supply and value chain, ensuring adherence to compliance standards (Feng et al., Reference Feng, Wang, Duan, Zhang and Zhang2020).