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Blockchain technology is poised to revolutionise the electronics industry by significantly improving data transfer across the value chain. This article examines the practical applications of blockchain, with a focus on enhancing data security and confidentiality. Furthermore, it highlights industry practices and explores how Digital Product Passports (DPPs) can offer effective solutions to improve value chain transparency in the manufacturing sector.
Practical applications of blockchain in the electronics industry
Blockchain’s decentralised nature makes it ideal for managing complex supply chains in the electronics industry. Each block in a blockchain contains data about transactions, including the what, when, where, who, how much, and the condition of an asset. This data is cryptographically encrypted and linked to previous and subsequent blocks, ensuring a secure and transparent ledger.
Ensuring provenance
One of the primary uses of blockchain in electronics is to ensure the provenance of materials. By creating a secure, immutable database, blockchain technology enables the precise tracking of the origin and movement of materials throughout the supply chain. This enhanced transparency allows manufacturers to verify the authenticity of their materials and products, ensuring that only genuine parts are used. Additionally, the ability to trace material origins supports a more sustainable and circular economy by providing clear data on the lifecycle of components, promoting responsible sourcing and recycling practices.
Enhancing data security and confidentiality
Blockchain’s security features are crucial for protecting sensitive data. The decentralised nature of blockchain means that no single entity controls the data, reducing the risk of tampering. Each transaction is verified by network participants, and once added to the blockchain, it cannot be altered. This immutability ensures that data remains secure and trustworthy.
To maintain confidentiality, blockchain can implement permissioned ledgers where access to data is restricted to authorised parties. This ensures that sensitive information is only accessible to those with the necessary permissions, protecting proprietary information and maintaining competitive advantage.
Industry practices and implementation
Several practices have been adopted by the electronics industry to leverage blockchain technology effectively:
- Digital twins: Creating digital representations of physical assets allows for real-time tracking and management. This practice enhances transparency and efficiency across the supply chain.
- Digital Product Passports (DPPs): DPPs are digital records that contain detailed information about a product’s lifecycle, enhancing transparency and sustainability.
- Smart contracts: These self-executing contracts with terms directly written into code facilitate automated transactions and processes, reducing the need for intermediaries and speeding up operations.
- IoT integration: Combining blockchain with IoT devices enables real-time data collection and monitoring. This integration ensures that data from various points in the supply chain is accurate and up to date.
Digital Product Passports (DPPs) as a solution
Digital Product Passports (DPPs) are an emerging application of blockchain technology that enhances transparency and sustainability in the electronics industry. A DPP is a digital record that contains detailed information about a product’s lifecycle, from raw material sourcing to manufacturing, usage, and disposal.
How DPPs work
- Data collection: DPPs collect a wide range of data from various stages of the product lifecycle, including:
- General information: Product ID, batch numbers, manufacturing location, and dates.
- Source data: Origin of raw materials, components used, and details on recycled materials.
- Footprint data: Carbon footprint, waste generation, and environmental impact during manufacturing and usage.
- Maintenance records: Details of repairs, maintenance events, and associated costs.
- Ownership information: History of ownership, including transfers and duration.
- Instructions: Guidelines for disassembly, recycling, repair, and end-of-life disposal.
- Documentation: Digital versions of warranties, service records, and insurance documents.
- Data storage and security: The collected data is stored on a blockchain, ensuring it is secure, immutable, and transparent. Blockchain’s decentralised nature means that no single entity controls the data, reducing the risk of tampering and fraud.
- Access and sharing: DPPs are accessible via a unique product identifier, such as a QR code, barcode, or NFC tag. This identifier can be scanned using a smart device to access the DPP, providing stakeholders with real-time information about the product.
- Interoperability: DPPs are designed to be interoperable with other digital product passports, ensuring seamless data exchange across different systems and platforms. This interoperability is crucial for maintaining a consistent and comprehensive view of the product’s lifecycle.
Lexmark’s commitment to circular economy and sustainability
Since 2023, Lexmark has been collaborating with CE-RISE as the exclusive manufacturing partner for printers and cartridges. This partnership is one way that Lexmark aims to develop innovative circular economy concepts by leveraging cross-sector expertise – Maxime Furkel, Director of Government Affairs, EMEA from Lexmark stated, “We are pleased to contribute to this significant project, sharing our experience to foster new circular economy practices that can benefit the entire ICT industry.”
Beyond the CE-RISE project, Lexmark has a long-standing commitment to the circular economy and remanufacturing initiatives to reduce the amount of waste sent to landfills. Since 1991, the company has been reclaiming materials through the Lexmark Cartridge Collection Program (LCCP) and has been producing post-consumer recycled (PCR) plastic for the past two decades. Lexmark’s goal is to achieve full carbon neutrality by 2035, emphasising the importance of circular economy principles in driving sustainable innovation and economic growth. All Lexmark products are designed with sustainability in mind.
The collaboration with CE-RISE is expected to further Lexmark’s goals, particularly in optimising remanufacturing, reducing waste, enhancing product lifecycle transparency, and advancing circularity—from product design to responsible recycling.
Conclusion
Blockchain technology offers significant benefits for data transfer in the electronics industry’s value chain, enhancing security, transparency, and efficiency. By adopting practices such as digital twins, smart contracts, IoT integration, and Digital Product Passports, the industry can address challenges related to data security and sustainability. Lexmark’s commitment to circular economy principles and its collaboration with CE-RISE exemplify how companies can leverage these technologies to create a more transparent and trustworthy supply chain, ultimately benefiting the entire industry.
References:
Bernards, N., Campbell-Verduyn, M., & Rodima-Taylor, D. (2024). The veil of transparency: Blockchain and sustainability governance in global supply chains. Environment and Planning C: Politics and Space, 42(5), 742-760. https://doi.org/10.1177/23996544221142763
Using blockchain to drive supply chain transparency Use cases and future outlook on blockchain in supply chain management, Deloitte, June 2023, Using blockchain to drive supply chain transparency
Protokol – Digital Product Passport (DPP) – A Complete Guide.pdf