Blockchain-Based Cybersecurity In Supply Chain Securing Industrial Supply Chains With Distributed Ledger Technology

Abstract

The increasing complexity, globalization, and digitalization of industrial supply chains have heightened their exposure to cyber threats, posing significant challenges to data security, system reliability, and operational integrity. Traditional cybersecurity frameworks, often centralized and vulnerable to cyberattacks, have proven insufficient in mitigating risks such as data breaches, fraud, and identity theft. In response, blockchain technology has emerged as a transformative security solution, offering a decentralized, immutable, and cryptographically secured framework to enhance cybersecurity in supply chain networks. This study conducts a comprehensive case study analysis across 12 industrial supply chains, including pharmaceuticals, automotive, aerospace, logistics, and financial services, to assess the effectiveness of blockchain-based security solutions. The findings reveal that blockchain significantly reduces cybersecurity risks by eliminating single points of failure, preventing unauthorized data modifications, and strengthening access control mechanisms through smart contracts and decentralized identity management. Across the analyzed case studies, blockchain implementation led to an average 47% reduction in security breaches, a 32% decrease in fraudulent activities, and a 28% reduction in long-term cybersecurity costs. Additionally, industries with stringent regulatory requirements, such as pharmaceuticals and aerospace, experienced a 41% improvement in compliance efficiency and a 52% reduction in non-compliance penalties, highlighting blockchain’s potential in governance and risk management. Despite these advantages, interoperability challenges, high implementation costs, and integration complexities with IoT, ERP, and cloud-based systems remain key barriers to adoption. The study concludes that while blockchain presents a highly effective cybersecurity solution, its widespread adoption requires industry-wide collaboration, enhanced interoperability frameworks, and strategic implementation models to ensure long-term sustainability. By synthesizing current research trends and providing actionable insights, this study offers valuable guidance for practitioners, policymakers, and researchers in leveraging blockchain technology to build secure, resilient, and transparent supply chain ecosystems.