1. What is blockchain-based traceability?

Blockchain-based traceability is a method of recording the complete journey of a product on the blockchain from production, processing, transportation, and distribution through to the end consumer. Each event in the supply chain is stored as a timestamped record on the distributed ledger, making data transparent, verifiable, and difficult to alter.

🔑 Read more: Blockchain in Traceability: Strategic Pillar for Vietnam's Digital Economy

Compared to traditional traceability systems, blockchain delivers four core differences:

• Immutability: Data once recorded is virtually impossible to edit or delete, every change leaves a trace.

• Distribution: Information is synchronized across multiple nodes, reducing dependence on a single centralized database.

• Verifiability: Enterprises, regulators, and consumers can verify the origin and history of a product.

• Interoperability: The use of standards such as GS1 allows data to be easily shared and connected between systems across the supply chain.

Thanks to these characteristics, blockchain-based traceability is becoming the foundation for transparent supply chain models, meeting the requirements of many export markets and new traceability regulations globally.

2. Why are traditional databases insufficient?

Many traceability systems today still rely on centralized databases managed by a single enterprise or intermediary. This model can meet internal needs but is not robust enough for multi-party supply chains due to three major limitations:

• Data can be altered: System administrators can change records without always leaving clear verifiable evidence.

• Lack of trust between parties: Manufacturers, distributors, logistics providers, and regulators struggle to fully trust data held by a single party.

• Data is difficult to interoperate: Each link in the chain typically uses its own system, causing information gaps and making cross-checking difficult.

Blockchain in traceability addresses this by creating a shared ledger where data is recorded immutably, in a distributed manner, and is verifiable. When combined with standards such as GS1 EPCIS, supply chain events can be recorded in a unified format, enabling data to be easily shared between systems.

This is why blockchain-based traceability has become one of the most practical applications of blockchain, particularly in agricultural products, food, pharmaceuticals, and export goods.

🔑 Read more: Bac Ninh lychees apply blockchain-based traceability

3. The traceability mechanism on NDAChain

On the NDAChain national blockchain platform, traceability operates under a model of digital identity and supply chain event recording. Each product, shipment, or item unit is assigned a unique identifier (UID) under the GS1 standard, linked to a digital record on-chain.

At each link in the chain, such as production, packaging, transportation, distribution, or sale, event data is recorded in accordance with the GS1 EPCIS standard. Each record is linked to the digital identity of the issuing party, enabling data source authentication and accountability tracing when needed.

Consumers can scan a QR code or tap NFC to view the product journey, while enterprises and regulators can trace data when fraud, discrepancies, or counterfeit goods are suspected.

🔑 Read more: National blockchain: the digital shield against counterfeits

NDATrace is the application layer that realizes this mechanism on NDAChain, combining DID/VC, the GS1 Digital Link standard, GS1 EPCIS, and W3C DID/VC to create a transparent, interoperable, and verifiable traceability foundation for Vietnam's supply chains.

4. The benefits of blockchain-based traceability

Blockchain-based traceability delivers value across the entire supply chain for enterprises, consumers, regulators, and export markets.

• For enterprises: Brings transparency to the supply chain, enhances brand reputation, enables early detection of discrepancies, and meets traceability requirements from international markets.

• For consumers: Makes it easy to check a product's origin, history, and verified information, increasing confidence at the point of purchase.

• For regulators: Supports rapid tracing when incidents occur, enables precise product isolation and recall, and reduces inspection and monitoring costs.

• For exports: Meets supply chain transparency and traceability regulations such as EUDR, the Digital Product Passport (DPP), and increasingly stringent requirements from international markets.

As export markets tighten their product data requirements, blockchain-based traceability is no longer a competitive advantage, it is becoming a condition for enterprises to participate in global supply chains. With platforms like NDATrace on NDAChain, enterprises can build traceability systems that are transparent, verifiable, and ready to connect with international standards.

🔑 Read more: 10 International Case Studies on Blockchain-based traceability

5. The legal and standards context in Vietnam

In Vietnam, traceability is being driven by an increasingly clear legal framework and set of standards. Programs on the deployment, application, and management of traceability systems lay the foundation for data standardization across supply chains. Among these, GS1 and standards for barcodes and numbering systems play an important role in identifying products, shipments, and individual item units.

Many product categories also have their own traceability requirements, from pharmaceuticals and agricultural products to export goods. For markets such as China and the European Union, origin data is increasingly becoming a mandatory condition for meeting management, quarantine, and export requirements.

In this context, national blockchain helps traceability regulations be enforced consistently, interoperably, and verifiably across the entire supply chain.

6. Traceability and trust in the digital economy

Blockchain-based traceability is not merely a technical solution, it is a way of building trust in supply chains within the digital economy. When every product has a transparent, verifiable, and tamper-resistant history, consumers trust more, legitimate enterprises are better protected, and regulators gain more effective monitoring tools.

On the NDAChain national blockchain infrastructure, traceability can become a shared service for multiple product categories, from agricultural products and pharmaceuticals to export goods. This is the foundation that helps Vietnamese goods enhance their reputation, meet international standards, and increase competitiveness in both domestic and global markets.

7. Frequently asked questions about blockchain-based traceability

What is blockchain-based traceability?
Blockchain-based traceability is a method of recording a product's journey on a distributed ledger, from production, transportation, and distribution through to the end consumer. Each supply chain event is stored as a verifiable, tamper-resistant record, increasing transparency and trust between enterprises, regulators, and consumers.

How does blockchain traceability differ from traditional databases?
Traditional databases are typically managed by a single party, meaning data can be altered or is difficult to independently verify. Blockchain creates a shared data source where no single party has unilateral control and every change leaves a trace. When combined with standards such as GS1, traceability data can be better interoperated between systems.

How does traceability work on NDAChain?
On the NDAChain national blockchain, each product or shipment is assigned a unique identifier under the GS1 standard. At each link in the chain, supply chain events are recorded in accordance with the GS1 EPCIS standard and linked to the digital identity of the issuing party. Consumers can scan a code to view the product journey, while regulators can trace data when needed.

What are the benefits of blockchain-based traceability?
Blockchain-based traceability helps enterprises bring transparency to their supply chains, meet export requirements, and enhance brand reputation. Consumers can more easily check a product's origin, while regulators gain additional tools for tracing, monitoring, and accurately recalling products when incidents occur.

Is traceability mandatory in Vietnam?
In Vietnam, traceability is being increasingly standardized and applied across many product categories including pharmaceuticals, agricultural products, food, and export goods. Some product categories already have their own traceability requirements under domestic regulations or import market standards. The general trend is that traceability will become an important condition for goods to circulate, be exported, and meet international standards.