The journey of jewelry, from the earth to the consumer, weaves a complex global web. This intricate network involves numerous phases, beginning with the mining of precious metals and rare gemstones and culminating in the creation of exquisite pieces. Along the way, wholesalers and retailers act as key distributors. This industry’s complexity stems from the unique characteristics of the materials, the intricacy of jewelry designs, and the skilled artistry of various craftspeople1. Geographical distances add another layer of complexity, demanding extensive supply chains and strict compliance with differing legal and ethical standards across nations. With rising consumer demand for transparency and ethically sourced jewelry, verifying the origin and ethical procurement of materials has become paramount2. Meeting modern consumer expectations for authenticity, quality, and ethical sourcing necessitates unwavering precision at every stage of this elaborate supply process. Therefore, addressing critical issues such as fraud, fostering greater transparency, and combating counterfeiting are all essential steps, underscoring the urgent need for a robust and reliable framework within the jewelry supply network3.
This study is born out of the challenges confronting the jewelry industry and the advancement of Industry 4.0. The adoption of blockchain technology is crucial, as it provides the foundation for a more interconnected and technologically driven industry. Blockchain, as an innovative solution, has the potential to transform the jewelry sector by establishing a secure, transparent, and unalterable digital record. This technology not only provides verification of jewelry authenticity and complete traceability of material origins, but also supports Industry 4.0 principles by enabling data-driven decision-making and enhancing supply chain transparency4. By embracing blockchain, the jewelry industry can increase consumer trust by providing easily verifiable information about the item’s journey from production to point of sale. Because it is decentralized, blockchain minimizes the risk of fraud, ensuring the information’s reliability and security – an essential step in realizing Industry 4.0 within the jewelry supply chain. In essence, integrating blockchain aligns the industry with the values of Industry 4.0, paving the way for a more transparent, trustworthy, and efficient system that satisfies both businesses and consumers in this era of digital transformation5.
Numerous researchers have turned to blockchain technology, to develop secure and distributed ledgers capable of boosting data transparency and security. Abeyratne et al.6 proposed a blockchain-based conceptual system for increasing transparency, traceability, and process integrity within manufacturing supply chains. They highlighted the potential advantages of blockchain for improving trust, mitigating transparency issues, lowering operational costs, and facilitating more effective collaboration among supply chain stakeholders. However, their suggested system has certain limitations pertaining to the level of supply chain visibility, the granularity of the captured data, the extent of stakeholder engagement, and the ability to integrate with existing processes and systems. Caro et al.7 present a blockchain-powered traceability system that uses Internet of Things (IoT) sensors to collect data directly from fields. This system is specifically engineered for optimizing management within the agri-food industry. Their study includes a comparative analysis of two distinct blockchain technologies: Ethereum (a public blockchain) and Hyperledger Sawtooth (a private blockchain), evaluating their respective strengths and weaknesses. A key limitation of their analysis is that it does not encompass the entire supply chain, from initial production to the final sale. Lu et al.8 describe a blockchain and smart contract-based traceability system known as OriginChain. This system not only ensures data availability and provides transparent, tamper-proof provenance data, but also automatically verifies data to guarantee regulatory compliance. OriginChain considers the perspectives of both suppliers and retailers regarding traceability. Retailers are particularly interested in product origin and quality, while suppliers focus on demonstrating product origin, quality, and adherence to regulations. OriginChain allows interested parties to submit applications for traceability services, and its design uses private blockchain technology to support geographically dispersed nodes spread across three distinct locations. The data storage system underpinning the blockchain tracks various off-chain data sources, storing their hash addresses on the chain. However, this solution is primarily applicable to service providers, as traceability services are provided according to contractual terms.
Wu et al.9 developed a hybrid blockchain architecture designed to provide real-time shipment tracking in shipping logistics. This architecture uses confidential ledgers for exclusive partner shipment exchanges and a public ledger for secure tracking of online shipment statuses. This framework addresses many limitations of existing systems, such as restricted access, reliance on single data sources, and provision of data only to carriers. Kittipanya-In et al.10 explored the effects of digital transformation on food supply chains. They discovered that digitalization enhances connectivity, efficiency, and responsiveness. However, they also observed challenges in transitioning from traditional to digital supply chains, including the necessity of specialized resource allocation.
Toyoda et al.11 examined the challenges associated with using conventional RFID (Radio Frequency Identification) technology to guarantee the authenticity of products, particularly in the post-supply chain phase. Their study presented the Product Ownership Management System (POMS), which is an innovative approach that combines blockchain technology to enhance the security and traceability of products using RFID tags. POMS utilizes the decentralized structure of blockchain to guarantee that only authentic products with verifiable ownership are sold to final consumers. The actual implementation of this system on the Ethereum platform has proved its viability and cost-effectiveness. While the solution provided by Toyoda et al.11 is a strong method for ensuring the validity of products after they have passed through the supply chain, our suggested system offers improved scalability, which addresses a wider range of difficulties in the supply chain management. Fernandez et al.12 have developed blockchain-based solutions that utilize drones and blockchain technology for industrial applications. One method utilizes drones for gathering inventory data, while smart contracts are employed through the use of blockchain technology. This system utilises drones as blockchain clients to provide a product traceability system for Industry 4.0. This drone-powered blockchain system has demonstrated a substantial increase in speed compared to the traditional method of inventory collection and administration performed by human operators in a supply chain warehouse. The drone generates new blocks on the blockchain, which are subsequently saved offline on the local warehouse server. Wang et al.13 conducted a two-year design science research study on a smart contract initiative in the UK’s construction sector, exploring how a group of supply chain actors collectively designed and piloted a blockchain solution to address supply chain transparency and provenance problems. Their research reaffirmed that the business model serves as a valid system-level theoretical framework and generative mechanism, enabling actors to coordinate and bundle activities to create value from emerging technologies like blockchain. The researchers developed a blockchain-enabled supply chain system and smart contracts to improve traceability, shareability, and collaboration in the construction supply chain through information sharing and automation. They presented a set of design principles that can be applied and tested in different supply chain contexts. Additionally, the authors provided in-depth insights on how blockchain can be implemented in a multi-tier complex supply network based on their longitudinal empirical case study in the construction industry. They also explored the adoption of information systems theories and the use of surveys to investigate the theoretical constructs that could influence blockchain adoption in the supply chain. Yiu et al.2 have proposed a distributed NFC (Near Field Communication) anti-counterfeiting system that leverages blockchain technology to decentralize anti-counterfeiting efforts across the supply chain industry. This system aims to strengthen product traceability and enhance the credibility of supply chain records. The key features of this blockchain-based anti-counterfeiting framework include the decentralisation of the anti-counterfeiting system across the supply chain, rather than relying on a centralized authority, integration of NFC technology to enable trustworthy data provenance retrieval, verification, and management for products. Improved traceability and credibility of supply chain records have been obtained through the use of blockchain technology.
However, the blockchain applications mentioned above are largely theoretical and suggest how blockchain might be used to improve provenance, traceability, and process integrity. Few of them have undergone extensive evaluations of their prototypes and the strategies required for their implementation and integration into the supply chain. In contrast, this study introduces a fully functional blockchain-driven system designed for the jewelry supply chain. This solution is comprehensively executed and assessed, with the inclusion of user engagements.
Several challenging issues affect the jewelry industry supply chain, including the presence of fake jewelry, a lack of supply chain transparency, questions about the origin of materials, and the fragmented landscape of firms that handle jewelry14. These problems make it clear that technologies like blockchain are needed to promote honesty and transparency within jewelry supply chains. Counterfeiting is a significant problem in the jewelry industry, where fake stones or replica jewelry are passed off as genuine. Mixing natural and artificial gemstones is a practice that deceives customers and erodes trust in the supply chain. The use of fraudulent materials compromises the quality and legitimacy of jewelry, damaging the whole supply chain’s reputation15. The lack of transparency is also a major challenge in the jewelry supply chain. Because of the opaque path that jewelry products take from their production to sale, customers have a hard time confirming their legitimacy and provenance. This obscurity allows unscrupulous actors to take advantage of the situation16. Concerns about the origin and dependability of metals and gemstones in jewelry have grown among consumers recently. The lack of specific information about sourcing these resources can undermine consumer confidence. Protecting the authenticity of gemstones is crucial for the jewelry supply chain to maintain customer trust17. The intricate network of the jewelry supply chain, which involves numerous intermediaries each with unique roles, poses a major challenge. Due to this complexity, it is difficult to track the history of a piece of jewelry and monitor aspects like origin, ethical sourcing, and quality control. In this complex network, where information may be lost or misinterpreted, it is challenging to provide consumers with accurate and trustworthy information about the origins of their jewelry18.
To increase transparency, traceability, and authenticity in the jewelry supply chain, this research suggests using a blockchain-based solution. The system employs Ethereum’s blockchain and smart contracts to track the whole product journey from mining to retail. Secure records are kept on a decentralized ledger. Certificate templates are stored off-chain and filled with information taken dynamically from the blockchain at the time of retrieval. The system’s decentralized structure deters fraud, while a user-friendly interface allows all parties to easily verify the product’s authenticity. The solution, which is in line with Industry 4.0 concepts, addresses issues with conventional supply chains. A fully operational system that offers practical traceability solutions and cryptographic hash-based certification, which replaces large file storage with lightweight, scalable, and cost-efficient solutions, are among the key contributions. This strategy illustrates the value of concentrating on data integrity while dynamically producing visual representations when needed. It is tailored to the jewelry sector and shows the potential of blockchain for high-value industries, providing a guide for future uses across sectors. These innovations promote interoperability and practical application, which enhances the use of blockchain in supply chain management.
Table 1 presents a comparison of the proposed blockchain-based solution for the jewelry supply chain with both conventional supply chains and other blockchain-based systems, including OriginChain, Everledger, and IBM Food Trust. The evaluation is based on a variety of criteria, including user authentication, data integrity, traceability, scalability, authenticity, secure storage, trustworthy operation, ease of setup, and level of decentralization. One of the key differentiators of the proposed solution is its decentralized structure, which distinguishes it from traditional centralized systems and certain other blockchain-based solutions. Decentralization eliminates the need for a central authority or intermediary, distributing control and trust across the network of participants. This aligns with the core principles of blockchain technology, promoting transparency, security, and resilience against single points of failure. The proposed solution also excels in user authentication and data integrity. By leveraging blockchain technology’s inherent security features, such as cryptographic hashing and consensus mechanisms, the system ensures robust user authentication and maintains data integrity throughout the supply chain. This addresses vulnerabilities commonly found in traditional supply chains, where user authentication and data integrity can be compromised. Furthermore, the proposed solution offers enhanced traceability and authenticity compared to traditional supply chains. By recording every step of the supply chain process on an immutable blockchain ledger, the system enables complete product traceability from raw material sourcing to final retail. The use of digital certificates and cryptographic signatures ensures product authenticity, preventing counterfeiting and fraud. To address potential scalability limitations of blockchain technology, the proposed solution integrates IPFS. Finally, the proposed solution ensures secure data storage by leveraging the decentralized and immutable nature of the blockchain. Unlike traditional centralized systems, where data can be compromised or lost due to a single point of failure, the distributed architecture of the blockchain provides redundancy and fault tolerance, thereby enhancing data security and availability. While the initial setup of decentralized systems may seem more difficult compared to centralized or private blockchain solutions, the proposed solution mitigates this challenge by leveraging the Ethereum platform and its well-established ecosystem. The use of Ethereum’s smart contracts, along with the availability of robust development tools and resources, facilitates the setup and deployment process, reducing overall complexity.