Blockchain-based Supply Chain Traceability: Legal Effectiveness and Consumer Rights Protection in Cross-border E-commerce
Yufang Liu
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Yufang Liu: Faculty of Law, Universiti Malaya, Kuala Lumpur-50603, Malaysia.
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Abstract:
Blockchain technology is considered another subversive technological innovation that has permeated into cross-border e-commerce which helps improve the traceability of the supply chain. Given this digital era, consumers and businesses want brands to guarantee the authenticity of their products while supply chain participants seek better visibility and responsible sourcing to minimise disputes. There are challenges of cybercrimes and breaches of data privacy that need to be considered to secure data. This research study will analyse this Blockchain technology's practical and legal effectiveness in promoting a secure global trading environment. Employing a qualitative research method, this study relies on secondary sources like case studies, academic literature, articles and journals to analyse the application of Blockchain technology in expanding cross-border e-commerce to ensure consumer trust in global trade. Using the qualitative research methodology and drawing from real cases such as Walmart, Amazon and IBM, the study explores the applicability and efficacy of the role of Blockchain in improving supply chain transparency. This research assesses the practical and legal efficacy of Blockchain technology in enhancing transparency in supply chain management as well as safeguarding consumers in the global e-commerce setting. The key findings of the study reveal the legal recognition and enforceability of Blockchain technology such as smart contracts. The study illustrates how the application of Blockchain technology has been effective in enhancing consumer trust and safeguarding them against data privacy breaches. A comparative analysis is used to understand how various nations have tailored approaches to use Blockchain technology. Despite the existence of legal challenges and the different regulatory frameworks across the globe, data privacy is perceived as a major concern. In this regard, the study concludes by highlighting the need for strengthening the regulations of this technology to optimise its potential in the cross-border e-commerce industry. The research results reveal how the legal enforceability of smart contracts and the use of decentralised ledgers have been effective in addressing major concerns like data breaches and information asymmetry. The study explores both the limitations and opportunities of this innovative technology in establishing that Blockchain technology is reshaping the global supply chains, with implications for consumer protection and legal compliance.
Date: 2025-06-11
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Published in Journal of Economics and Trade, 2025, 10 (2), pp.96-104. ⟨10.56557/jet/2025/v10i29408⟩
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05109568
DOI: 10.56557/jet/2025/v10i29408
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