Blockchain for Halal Supply Chain Traceability: From Farm to Table

Discover how blockchain ensures Shariah compliance in the Halal food supply chain through traceability and transparency. Learn how MasChain supports end-to-end tracking from farm to table.
Dr Suresh Naidu Sadasivan
4 Minute Read · 26 Jul, 2024

The Halal food supply chain is a complex system requiring rigorous adherence to Shariah compliance. Ensuring the integrity of Halal products from farm to table has become a significant challenge due to increasing consumer demand and the globalisation of food supply networks. With its distributed and immutable ledger, blockchain technology offers a robust solution for enhancing transparency, traceability, and trust in the Halal food supply chain. This article explores how blockchain can ensure the integrity and Shariah compliance of the Halal food supply chain, with a focus on the role of MasChain, a blockchain platform developed by Masverse, a Malaysia Blockchain Company, in this context.

Challenges in the Halal Food Supply Chain

The Halal food supply chain faces several challenges that hinder its efficiency and reliability. These challenges include:

  1. Lack of Transparency: The complexity of the supply chain makes it difficult to maintain transparency and trace the origin of products (Abdul Rahman et al., 2018).
  2. Fraud and Adulteration: There have been instances of non-Halal products being mislabelled as Halal, leading to a breach of consumer trust (Abdul-Mutalib et al., 2017).
  3. Certification Issues: The certification process can be inconsistent and lacks a standardised global framework, leading to confusion and potential non-compliance (Tieman, 2011).
  4. Supply Chain Inefficiencies: Inefficient management practices result in delays, increased costs, and a lack of real-time information (Kamaruddin et al., 2012).

Blockchain Technology: An Overview

Blockchain is a distributed ledger technology that records transactions across multiple computers to ensure security and transparency (Nakamoto, 2008). Each transaction is stored in a block, and these blocks are linked together in a chain, making it nearly impossible to alter the data without consensus from the network. Blockchain’s key features include immutability, decentralisation, and traceability, which are critical for addressing the challenges in the Halal food supply chain.

Ensuring Halal Integrity with Blockchain

Blockchain provides a transparent and immutable record of every transaction in the supply chain. Using blockchain, stakeholders can trace the journey of Halal products from the farm to the consumer, ensuring that each step complies with Shariah principles (Mittal et al., 2018). This traceability helps identify and eliminate sources of contamination or fraud.

Certification and Compliance

Blockchain can streamline the certification process by providing a tamper-proof record of certification data. Certifying bodies can issue digital certificates stored on the blockchain, ensuring their authenticity and validity. This approach reduces the risk of fraudulent certifications and provides consumers with verifiable proof of Halal compliance (Wahab et al., 2020).

Real-Time Information and Efficiency

By integrating blockchain with IoT devices, real-time data on the condition and location of Halal products can be recorded and shared across the supply chain. This integration enhances supply chain efficiency by enabling better inventory management, reducing delays, and ensuring that products meet Halal standards at every stage (Yousuf et al., 2019).

MasChain: Enhancing the Halal Supply Chain

MasChain, developed by Masverse, a Malaysia Blockchain Company, offers a comprehensive solution for enhancing the Halal supply chain. The platform leverages blockchain technology to provide end-to-end traceability and transparency, ensuring Halal products comply with Shariah principles.

Key Features of MasChain

  1. Distributed Ledger: MasChain uses a distributed ledger to record all transactions, ensuring that data is transparent and immutable.
  2. Smart Contracts: Smart contracts automate the certification process, reducing the risk of human error and fraud.
  3. Real-Time Tracking: Integration with IoT devices allows for real-time tracking of products, ensuring compliance at every stage of the supply chain.
  4. Digital Certification: MasChain enables certifying bodies to issue digital certificates stored on the blockchain, providing verifiable proof of Halal compliance.

Implementation of MasChain

Although MasChain has not yet been implemented in any supply chain, its potential for transforming the Halal food industry is significant. By adopting MasChain, stakeholders can ensure the integrity and Shariah compliance of Halal products from farm to table. The platform’s features align with the needs of the Halal food supply chain, addressing issues of transparency, fraud, and inefficiency.

Blockchain technology holds significant promise for enhancing the Halal food supply chain’s integrity and Shariah compliance. By providing transparency, traceability, and efficiency, blockchain can address the major challenges the Halal food industry faces. MasChain, a Malaysia Blockchain Company platform, exemplifies how blockchain can be effectively used to ensure the integrity of Halal products from farm to table. As the global demand for Halal products continues to grow, adopting blockchain technology will be crucial in maintaining consumer trust and compliance with Shariah principles. For more details about MasChain, please visit MasChain Documentation.

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