Blockchain boosts trust, efficiency and security in global data supply chains

Global enterprises face mounting risks as cross-border data flows surge in volume and complexity, exposing critical supply chains to cyberattacks, data breaches, and regulatory conflicts. With penalties for violations soaring into billions of dollars and cyber incidents climbing at record pace, traditional safeguards are proving inadequate. Against this backdrop, new research published in Sustainability sheds light on how blockchain technology can offer a decisive line of defense.

Titled "Blockchain-Based Risk Management in Cross-Border Data Supply Chains: A Comparative Analysis of Alibaba and Infosys," the study investigates how blockchain adoption is reshaping global digital supply chains. Through a comparative analysis of Alibaba and Infosys, the research reveals blockchain’s potential to cut cyber breaches, strengthen compliance, and accelerate cross-border logistics.

Why blockchain is critical for cross-border data flows

Cross-border data flows have become the lifeblood of digital enterprises, powering logistics coordination, financial transactions, and data-driven services across regions. However, they also expose companies to significant risks including data breaches, cyberattacks, and regulatory noncompliance. According to the study, these vulnerabilities are particularly acute when firms operate in diverse jurisdictions with different data protection laws, such as Europe’s GDPR and India’s DPDP Act.

The study reveals the limitations of traditional technologies like RFID, IoT, and cloud computing, which remain vulnerable to tampering and centralized points of failure. In contrast, blockchain’s decentralized, tamper-proof architecture offers a unique defense, shifting supply chain risk management from reactive to proactive. The authors found that blockchain adoption enabled Alibaba to cut international counterfeiting incidents by 62 percent and Infosys to reduce manual auditing workloads after aligning with GDPR requirements.

The study identifies two central research questions: to what extent blockchain can mitigate supply chain risks in cross-border data environments, and how its strategic use can enhance innovation, efficiency, and global competitiveness. By integrating blockchain into their operations, Alibaba and Infosys were able to reduce cyber incidents, strengthen regulatory compliance, and accelerate logistics processes, offering lessons for multinational enterprises worldwide.

How Alibaba and Infosys applied blockchain for risk management

The comparative case analysis revealed distinct approaches by Alibaba and Infosys in integrating blockchain across their digital ecosystems. For Alibaba, which processes billions of annual transactions, blockchain was deployed through its Cainiao logistics network and Ant Group financial services. This allowed real-time data sharing, predictive analytics, and secure tracking, reducing customs delays by 30 percent and cutting data tampering incidents by 90 percent.

Infosys, operating in a service-oriented IT framework, applied blockchain primarily to strengthen compliance and secure data flows. Smart contracts automated GDPR compliance, achieving 92 percent audit alignment and eliminating up to 120 hours of manual audit work per month. Blockchain validation tools also streamlined project delivery timelines by 35 percent by resolving data inconsistencies across global teams.

The study’s methodology combined thematic analysis of peer-reviewed studies with ISO 31000 risk evaluation, allowing a structured measurement of blockchain’s impact. In Alibaba’s case, annual data leakage events previously costing millions were significantly reduced, while Infosys was able to avoid regulatory penalties linked to GDPR through blockchain-enabled compliance automation. Both companies demonstrated that blockchain’s immutability and distributed consensus mechanisms could transform risk management into a source of competitive advantage.

What the fndings mean for cybersecurity and global policy

Alibaba used blockchain-enabled digital identity systems and NFT-based authentication to combat widespread counterfeiting, achieving a 60 percent reduction in fraudulent listings. Infosys focused on decentralized multi-factor authentication and blockchain-driven threat intelligence, reducing breach attempts by 35 percent and improving phishing response times by 50 percent. These results illustrate blockchain’s function not just as a technological upgrade but as a strategic defense mechanism.

The authors contextualized these findings through three theoretical lenses: the resource-based view, which frames blockchain as a rare and valuable strategic asset; dynamic capabilities theory, which shows how blockchain enhances organizational agility in adapting to evolving regulations; and system of systems theory, which explains blockchain’s ability to unify logistics, finance, compliance, and cybersecurity across jurisdictions. This theoretical integration underscores blockchain’s role as both a safeguard and an enabler of innovation in global supply chains.

Besides corporate practice, the research provides policy recommendations. It urges governments to harmonize international data governance standards using blockchain-based compliance frameworks, incentivize enterprise adoption through policy sandboxes, and build cross-sector training programs to strengthen blockchain expertise. By embedding blockchain in not only IT but also legal and compliance functions, enterprises can align with ISO 31000 risk principles while fostering trust and security in digital trade.