DIDChain: Advancing Supply Chain Data Management with Decentralized Identifiers and Blockchain

TL;DR

DIDChain proposes a hybrid blockchain framework that combines Decentralized Identifiers (DIDs), IPFS, and the cheqd network to address core supply chain data management challenges of traceability, transparency, and trust. By treating assets as DIDs with versioned DID Documents and linking off-chain metadata in IPFS, the framework enables verifiable asset histories while preserving privacy through a permissioned on-chain layer. The evaluation shows feasible performance for documenting key supply chain events (median 6–9 seconds) and analyzes economic feasibility, revealing that cheqd operation costs dominate and scalability remains a practical concern. The work highlights the potential of integrating DIDs and decentralized storage to transform cross-industry supply chain infrastructure, while identifying scalability, cost, and API limitations as critical areas for further enhancement, including cross-blockchain interoperability and advanced credential mechanisms.

Abstract

Supply chain data management faces challenges in traceability, transparency, and trust. These issues stem from data silos and communication barriers. This research introduces DIDChain, a framework leveraging blockchain technology, Decentralized Identifiers, and the InterPlanetary File System. DIDChain improves supply chain data management. To address privacy concerns, DIDChain employs a hybrid blockchain architecture that combines public blockchain transparency with the control of private systems. Our hybrid approach preserves the authenticity and reliability of supply chain events. It also respects the data privacy requirements of the participants in the supply chain. Central to DIDChain is the cheqd infrastructure. The cheqd infrastructure enables digital tracing of asset events, such as an asset moving from the milk-producing dairy farm to the cheese manufacturer. In this research, assets are raw materials and products. The cheqd infrastructure ensures the traceability and reliability of assets in the management of supply chain data. Our contribution to blockchain-enabled supply chain systems demonstrates the robustness of DIDChain. Integrating blockchain technology through DIDChain offers a solution to data silos and communication barriers. With DIDChain, we propose a framework to transform the supply chain infrastructure across industries.

Figures (6)

• Figure 1: Supply chain with stages and stakeholder interactions. The stages are indexed from (1) production to (9) consumer engagement, including unique DIDs assigned to each entity and asset.
• Figure 2: Integration of Blockchain and IPFS in Supply Chain: Showcasing the lifecycle of assets through DID Documents as digital twins, from raw material to final product, enhancing traceability and verification.
• Figure 3: Detailed architecture of the SCDM framework showcasing the integration of frontend technologies with blockchain and IPFS via secure APIs.
• Figure 4: Comparing the average and spread of supply chain event's documentation time, tested with 30 assets per event. ** For the manufacturing event, two compartments were listed in the respective DID Document.
• Figure 5: Comparing the performance time of documenting manufacturing of 68 products with different amounts of compartments. On average, each of these products has 11 compartments.