Review of Blockchain-based Tokenization Solutions for Assets in Supply Chains

Abstract

Recently, blockchain-based tokens have earned an important role in fields such as the art market or online gaming. First approaches exist, which adopt the potentials of blockchain tokens in supply chain management to increase transparency, visibility, automation, and disintermediation of supply chains. In context, the tokenization of assets in supply chains refers to the practice of creating virtual representations of physical assets on the blockchain. Solutions in supply chain management based on the tokenization of assets vary in terms of application objectives, token types, asset characteristics, as well as the complexities of supply chain events to be mapped on the blockchain. Currently, however, no review exists that summarizes the characteristics of blockchain-based tokens and their scope of applications. This paper provides a clear terminological distinction of existing blockchain token types and therefore distinguishes between fungible tokens, non-fungible tokens, smart non-fungible tokens, and dynamic smart non-fungible tokens. Subsequently, the token types are classified regarding their traceability, modifiability, and authorization to evaluate suitability for mapping assets in supply chains. Given the potential of blockchain in supply chain management, the results of the review serve as a foundation for a practical guide supporting the selection process of suitable token types for industrial applications.