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Blockchain for Provenance and Traceability

Key Aspects

ScienceSoft applies 34-year experience in IT and proficiency in supply chain management and blockchain development to design and build robust blockchain solutions for provenance and traceability.

Blockchain for Provenance and Traceability - ScienceSoft
Blockchain for Provenance and Traceability - ScienceSoft

Blockchain for Provenance and Traceability: The Essence

When used for provenance and traceability, blockchain provides full visibility of goods-related data and transactions, facilitates tracking of products provenance, helps assure goods authenticity and origin, prevent fraud and counterfeiting.

Market Info: Blockchain for Provenance and Traceability

The global blockchain market was estimated at $6 billion in 2021. It is forecasted to reach $56.7 billion by 2026 at a CAGR of 56.9%. Increasing demand for facilitated tracking of inventory and asset provenance and end-to-end traceability of goods-related events and transactions is the main driver for the popularity of specialized blockchain solutions across various industries, from food manufacturing and fashion retail to healthcare and real estate.

How Blockchain for Provenance and Traceability Works

A sample architecture

In the blockchain network for provenance and traceability, once validated and encrypted, data and transactions are stored in timestamped blocks linked in chronological order. The blocks form an immutable distributed ledger that serves as a database shared by multiple authorized parties and provides a single source of truth to verify the provenance of assets and inventory. Network participants interact with the distributed ledger to transact and trace data using role-specific web applications.

Architecture of blockchain for provenance and traceability - ScienceSoft

Main use cases

Supply chain and logistics management

End-to-end traceability of multi-party obligations, goods shipment and payments across multiple supply chain tiers. Assuring the supply authenticity and origin, which is critical for particular kinds of inventory (e.g., drugs, food products, electronic components).

Asset management

Immutable asset records for various industries, from real estate and entertainment to luxury retail and additive manufacturing, to prove asset provenance and prevent fraud and counterfeiting.

Management of legal ownership documents

An immutable audit trail of all manipulations across legal documents that serve as proof of ownership, including document creation, editing, viewing and sharing.

Claim management

Providing proof of goods provenance and a full history of all multi-party transactions for transparent resolution of claim disputes, e.g., on goods quality or authenticity.

Key Features

Traceability of multi-party transactions

A distributed ledger available to the blockchain network participants provides an immutable record and real-time view of all transactions between the involved parties.

Protocols that enable automated enforcement of fixed obligations under multi-party agreements (e.g., making payments, transfer of responsibility or ownership) upon the pre-defined events.

Automated recordkeeping

All transactions between the blockchain network participants, including those initiated by smart contracts, are automatically validated, timestamped and recorded in the distributed ledger.

Product provenance tracking

Data on the product journey from raw material origin through transportation, processing, manufacturing, and quality check across different locations and responsible parties can be tracked in the blockchain by multiple parties at any point.

Consensus-based data validation

The rules for automated validation of transactions and prioritization of their processing and storage are specified by pre-defined consensus protocols, e.g., proof-of-stake (for public blockchains) or selective endorsement (for private or consortium blockchains).


A hash value, which serves as a unique cryptographic identifier, is automatically generated for each piece of data in the blockchain network. Even a minor change in the data leads to the change in all the output hash values, which makes it tamper-evident.


Blockchain data safety is achieved with multi-factor authentication, fraud detection algorithms, data encryption (including asymmetric encryption for public blockchains), and more.

Configurable access rights

In case of private or consortium blockchain, the rights to transact, view or share data can be configured for various participants.

A Success Story of Blockchain for Provenance and Traceability by ScienceSoft

ScienceSoft’s team has designed and developed a private blockchain network that enables end-to-end traceability of supply chain transactions and facilitates assuring the provenance of raw materials and finished products.

Solution features:

  • Golang-based smart contracts automatically enforce fixed multi-party obligations.
  • Different web interfaces for manufacturers, distributors, and stores ensure all supply chain participants can conveniently interact with a distributed ledger to trace and transact data.
  • A role-based access model and node authentication algorithms protect sensitive supply chain data.

Main benefit: Users enjoy the minimized risk of counterfeiting while having advanced integrity and security of supply chain transaction data.

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Ready To Build Blockchain for Improved Traceability?

ScienceSoft’s team is ready to help you roll out a competitive blockchain solution that allows for facilitated traceability and provenance tracking and drives ROI fast.

Technology Stack for Blockchain Implementation

Back end programming languages

Use: to develop the back end of the blockchain solution.

Front end programming languages

Use: to create the user side of user-specific applications.

Blockchain frameworks

Use: to speed up blockchain development while ensuring reliable application quality.

Hyperledger Fabric
Parity Substrate
Cosmos SDK
POA Network

Blockchain cloud services

Use: to easily build, host, and manage the blockchain environment.

Amazon Managed Blockchain
Oracle Blockchain
IBM Blockchain


Use: to containerize blockchain components for streamlined testing, deployment, and updates.


The Challenges of Blockchain for Provenance and Traceability

Challenge #1: High quality of input data

Once recorded in the blockchain ledger, data becomes immutable. Low-quality input data is bound to remain stored in the blockchain, which can result in inaccurate product provenance identification or the incorrect resolution of product quality and asset ownership claims.

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The blockchain solution can be powered with AI, which provides intelligent data reconciliation to ensure data accuracy and fraud detection, identify suspicious transactions, and prevent their upload into the system.


Challenge #2: Continuous upload of supply chain data

Blockchain needs to continuously collect all available supply chain data to maintain a complete history of data on product provenance, location, and storage conditions and trace products in real time. Thus, the solution has to seamlessly integrate with all relevant software tools (including legacy ones) of multiple blockchain network participants.

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Well-documented integration APIs help the blockchain solution enable fast and smooth connection to multiple data sources, including back-office software or sensors (e.g., to trace temperature-sensitive food products or drugs). However, the APIs have limited application when blockchain needs integration with legacy software. In this case, the blockchain solution may require custom-built integrations.


Cost Factors for Blockchain-Based Software for Provenance and Traceability

The cost of blockchain development varies greatly depending on:

  • Blockchain network type (private, public, consortium, hybrid).
  • The type of consensus (PoW, PoS, selective endorsement, etc.).
  • The number and complexity of a solution’s functional modules, including smart contracts.
  • The number and complexity of web and/or mobile applications for various user groups (e.g., suppliers, end consumers, LSPs) to interact with the blockchain solution.
  • The volume of data to be migrated from spreadsheets and/or existing supply chain management software.
  • The number and complexity of integrations with required software (e.g., ERP, accounting software, selling platforms).
  • Application availability, performance and security requirements.
  • Blockchain interoperability capabilities.
  • The required deliverable (PoC, MVP, a full-scale solution), which influences the duration of blockchain development.

From ScienceSoft’s experience, the development cost for an MVP of blockchain-based provenance and traceability software will be around $80,000–$150,000. A full-featured blockchain solution that comprises a private network and smart contracts requires $400,000–$1,500,000+ in investments.

On average, companies see the payoff of custom blockchain development in 1218 months.

Blockchain for Provenance and Traceability Consulting and Development by ScienceSoft

Having 34-year experience in software development, ScienceSoft offers end-to-end blockchain development services to introduce reliable blockchain solutions for facilitated traceability of data and transactions and goods provenance monitoring.

Blockchain for provenance and traceability consulting

  • Analyzing your business needs and eliciting requirements to a blockchain system for provenance and traceability.
  • Suggesting optimal blockchain network type (private, public, consortium, hybrid), architecture design, and tech stack.
  • Providing a detailed feature set for the blockchain system for provenance and traceability.
  • Preparing an integration plan with required software (e.g., ERP, accounting software, selling platforms).
  • Blockchain security consulting.
  • Delivering a roadmap for blockchain system implementation, including a risk mitigation plan.

Blockchain for provenance and traceability development

  • Blockchain for provenance and traceability needs analysis.
  • Blockchain software conceptualization.
  • Architecture design of the blockchain for provenance and traceability.
  • Blockchain for provenance and traceability development.
  • Integrating the blockchain system into an existing software ecosystem.
  • Testing and quality assurance.
  • User training.
  • Blockchain software support and evolution (if required).

About ScienceSoft

ScienceSoft is an international IT consulting and software development company headquartered in McKinney, Texas. We provide consultancy and development services to help businesses implement blockchain for improved traceability of data and transactions. In our blockchain projects, we employ robust quality management and data security management systems supported by ISO 9001 and ISO 27001 certificates.