# Blockchain Applications in Forestry: A Systematic Literature Review
## 5 Benefits, Opportunities and Challenges of Blockchain Applications in Forestry
### Challenges of Blockchain in Forestry  
Although blockchain technology has great potential in forestry, there are also several challenges of blockchain implementation in the forestry sector. Blockchain technology is a new and complex technology that may not be accepted in forestry enterprises. It is difficult to apply into practice. Blockchain technology has not been well adapted in the forestry sector. Most blockchain-based applications are developed or proposed but have not yet been widely applied in forestry. Some forest companies may not want to apply blockchain technology in their system in the forestry sector since they do not want to open their database to the public [33]. Some forestry companies still want traditional payment and transactions in timber trading. This subsection presents and discusses the categories of challenges.  
Loss of traditional jobs: Blockchain technology increases the risk of losing traditional and low-skilled jobs. The implementation of blockchain will eliminate many traditional jobs in accounting, credit, and international entities [32]. [PERSON] and [PERSON] [33] draw a similar conclusion that specialists in accounting and foreign trade departments of timber companies may lose their jobs since all transactions and smart contracts are not involved banks and intermediaries. All transactions will be handled by cryptographers and experts in smart contracts [33].  
Implementation risk: The implementation of blockchain technology could be a challenge for forestry in some countries. The cryptocurrency is illegal or not recognized in some regions and countries (such as China), therefore, using blockchain in timber trading is only theoretical and conceptual in these countries [33]. It also makes international timber trading become a challenge. If timber trading occurs in these countries, cash-out cryptocurrency will become a problem.  
Large energy consumption: Blockchain-mining operations require a large amount of energy, which could be a big challenge for forestry [33]. Although blockchain technology brings cost reduction to forestry, blockchain itself has a huge energy ad financial consumption. In 2021, a single bitcoin transaction consumed approximately 2290 kWh of electrical energy, equivalent to an average U.S. household's 78 days of power consumption [53].  
Lack of standardization: Regulation is also a challenge that blockchain technology brings to forestry. Cryptocurrency transactions in forestry and wood products trade lack international standard regulations between countries. Some conflicts and dispute resolution may require higher authorities to resolve [32].  
Moreover, for blockchain-based traceability systems, all participants of the forest supply chain were required to use the proposed system. If one participant does not use the system, the system will fail to provide all users with the proposed functionality [38]. If any participants in the forest supply chain fail to upload in the blockchain, there might be a difference between on-chain data and off-chain data [38].