EDI and Blockchain in Supply Chain: A Security Analysis

Abstract

Integrating Electronic Data Interchange (EDI) and blockchain technology is reshaping supply chain management, especially from a security standpoint. EDI has long been a fundamental tool for streamlining information flow between supply chain partners, enabling rapid data exchanges and reducing manual errors. However, traditional EDI systems have been vulnerable to data breaches and cyberattacks due to centralized data storage and a lack of advanced security protocols. With its decentralized and immutable ledger, blockchain offers a promising solution to address these security challenges. By implementing blockchain with EDI, supply chains can benefit from enhanced data integrity, traceability, and transparency. Blockchain’s cryptographic algorithms ensure that data is secure and tamper-proof, fostering trust among participants. Additionally, integrating intelligent contracts within blockchain allows for automated processes, minimizing human intervention and reducing the risk of fraud. Despite these benefits, adopting blockchain technology in EDI-based supply chains presents particular challenges, such as scalability concerns, high energy consumption, and the need for widespread industry adoption. This paper delves into the security benefits and challenges of combining EDI and blockchain in supply chain management. It explores case studies and recent research to highlight real-world applications and assess the effectiveness of this integration. By analyzing both technologies’ capabilities and limitations, this paper aims to provide insights into how EDI and blockchain can create a more secure, efficient, and resilient supply chain ecosystem.