## 3 The Critical Importance of Product Identity in Agricultural Supply Chains
### Blockchain as a Solution for Traceability and Product Identity  
Blockchain technology addresses many of the above challenges by providing a decentralised, tamper-resistant, and shared ledger for supply chain transactions. Blockchain technology provides a transparent and immutable ledger, enhancing trust among supply chain stakeholders by ensuring all transactions are visible and tamper-proof [41; 42; 43; 44]. This transparency is particularly beneficial in verifying the authenticity and origin of products, which is crucial for industries like luxury goods and food safety [45; 46]. Blockchain also creates an irreversible and permanent ledger of a product's entire lifespan, ensuring transparency and authenticity at every supply chain level. Smart contracts can be utilized to notarize traceability activities, reinforcing immutability and transparency. Improved Efficiency and Cost Reduction  
Automation of processes via blockchain reduces manual tasks and operational delays, leading to efficiency gains and cost savings [44]. It streamlines supply chain operations, making them more agile and responsive [44]. Fraud Prevention and Security  
Blockchain's tamper-resistant nature significantly reduces incidents of fraud and enhances the security of supply chain data [44]. This is especially important for sectors dealing with high-value or sensitive products, such as electronics and automotive [47; 48]. Consumer Trust and Decision-Making  
Blockchain traceability addresses information asymmetry, influencing consumer purchasing decisions by offering reliable data on product origins and safety [46; 49]. It reduces reliance on potentially unreliable electronic word-of-mouth [49]. This can help build consumer trust, expand market demand, and increase product sales [50; 51]. Sustainability and Compliance  
Blockchain enhances visibility into environmental and social impacts, ensuring adherence to sustainability practices [52]. It supports automated regulatory compliance checks, aiding companies in meeting legal requirements [50]. Challenges of Using Blockchain for Traceability and Product Identity  
Scalability and Performance Issues  
Blockchain systems face limitations due to restricted block size and low transaction throughput, hindering scalability for large, global supply chains [51; 53]. Performance bottlenecks and the inability to effectively protect enterprise-sensitive data are ongoing issues. Interoperability and System Complexity  
The lack of standardization and the presence of multiple platforms complicate interoperability between systems [51; 53]. The complexity increases further due to the global and fragmented nature of many supply chains. Integration with the Physical Domain  
Blockchain alone does not guarantee accurate tracing of goods. Mechanisms to reliably anchor physical objects into blockchain systems are essential [45]. The accuracy and completeness of data recorded on the blockchain are critical to maintaining trust and system effectiveness [46]. Motivating all supply chain actors to provide high-quality, verifiable data remains a major challenge [46]. Cost and Complexity of Implementation  
High initial costs and technical complexity in setting up and maintaining blockchain systems can deter adoption, especially among smaller firms [42; 54]. Privacy and Information Disclosure  
The use of public or semi-public blockchains raises concerns about privacy and potential exposure of trade secrets [46; 53]. Balancing transparency with protection of sensitive data is crucial [46]. Regulatory and Ethical Considerations  
Current systems often overlook government regulations and ethical implications. Blockchain traceability must be designed with compliance in mind. Addressing the ethical dimension includes managing information asymmetry and ensuring equitable access to verified data.