# Blockchain Applications in Forestry: A Systematic Literature Review
## 5 Benefits, Opportunities and Challenges of Blockchain Applications in Forestry
### Benefits of Blockchain in Forestry
\begin{table}
\begin{tabular}{c c c} \hline \hline \multicolumn{2}{c}{**Categories**} & **Reference** \\ \hline \multirow{8}{*}{Benefits} & Increasing trust/trustworthiness & [36; 37; 38; 52] \\  & Efficient traceability & [33; 35; 37; 42; 44] \\  & Increasing transparency & [32; 33; 34; 45; 41; 42; 44; 45] \\  & Data integrity & [32; 33; 37; 39] \\  & Minimizing illegal logging/timber trade & [4; 32; 33; 37; 39; 41] \\  & Competitive (positive) & [32; 33; 37; 43] \\  & Confidentiality/Privacy & [32; 33] \\  & Anti-corruption & [32; 33; 36; 41] \\  & Sustainable forestry & [32; 33; 36; 47] \\  & Cost reduction & [32; 33; 45; 47] \\ \hline \multirow{4}{*}{Opportunities} & Increasing new skilled job opportunities & [32; 33] \\  & Growing investment opportunities & [32; 42] \\  & New opportunities for small and \\  & medium-sized enterprises (SMEs) & [32; 33] \\ \hline \multirow{4}{*}{Challenges} & Lack of standardization & [32; 33] \\  & Large energy consumption & [33; 53] \\ \cline{1-1}  & Loss of traditional jobs & [32; 33] \\ \cline{1-1}  & Implementation risk & [33] \\ \cline{1-1}  & International timber trade transactions & [33] \\ \hline \hline \end{tabular}
\end{table} 
Table 5: Benefits, opportunities, and challenges of blockchain in forestry. technology would improve the quality of forestry and make the Russian forest sector more competitive in the domestic and global timber market. Forestry sustainability: Blockchain technology can use forest resources more rationally to increase forestry sustainability. Blockchain systems with drones can store the volume of cutdown trees [4] to reduce deforestation, monitor the utilize of forests, and protect biodiversity. [PERSON] et al. [32] draw a similar conclusion that the use of satellites and drones with blockchain technology can monitor forest resources continuously to guarantee sustainable forest management. Moreover, blockchain technology increases forest farmers' willingness to reduce emissions [47]. Cost reduction: Saving cost has also been reported as a benefit of blockchain to forestry. Even though the implementation cost (investment) of blockchain is costly [33; 35], the use of blockchain technology could bring forestry cost reduction in reducing transaction cost [33; 45], abatement costs of forest farmers [47], and makes processing wood products cheaper [32] in forestry. The investment of blockchain increases the efficiency and profit of wood production. Since blockchain eliminates the intermediaries during transactions, the tasks of transactions can be done automatically. All participants receive the processes of transactions and product promotions, the risks, and mobilizes finances would reduce, making processing wood products cheaper [32]. Blockchain technology reduces forest farmers' abatement costs by influencing carbon prices to improve their emission reduction efforts [47]. Efficient traceability: One benefit of blockchain in tracking wood/timbers/wood products is increasing traceability. With the help of blockchain, the forestry industry could monitor wood continuously [33]. With smart contracts, all parties in the wood supply chain follow the planned route to building the next block [33; 36]. Increase trustworthiness: Increased trust is another benefit that blockchain brings to the forestry sector. The trustworthiness/trust in forestry has been reported in increasing the trust of purchasers (of wood products) [36; 37; 38; 52]. The blockchain-based traceability systems can help purchasers understand the origin of timbers, whether the timber is environmentally friendly wood, and whether the processes of wood products involve child labor. [PERSON] and [PERSON] [52] pointed out that tracking the origin of timber products using blockchain-based applications would positively impact the purchaser's trust. [PERSON] et al. [37] indicated that the blockchain solution with tracking and certifying wood volumes could address customers' concerns regarding wood products' source and environmental impacts.