Question

The integration of blockchain technology in supply chain management has the potential to increase transparency and traceability. However, challenges remain in terms of scalability and the energy consumption of blockchain systems. Additionally, the adoption of blockchain technology requires significant changes in existing supply chain processes and coordination among various stakeholders.
What is one challenge mentioned in the passage regarding the use of blockchain technology in supply chain management?

• A. Blockchain technology is too transparent and traceable.
• B. Lack of significant changes required in existing supply chain processes.
• C. Scalability issues and high energy consumption of blockchain systems.
• D. Coordination among stakeholders is not needed for blockchain adoption.

Hint:

Focus on keywords like ``challenges'' and ``remain'' to pinpoint difficulties discussed in the passage.

Answer 1

The Correct Option is C

The passage highlights that blockchain technology can greatly improve transparency and traceability in supply chain management, which are positive attributes.
However, it also clearly identifies several challenges that must be addressed for successful integration:

Scalability issues: This means the blockchain system may struggle to efficiently handle a large number of transactions or grow with the expanding supply chain.
High energy consumption: Blockchain systems, especially those using proof-of-work protocols, can consume significant amounts of energy, raising sustainability concerns.
Additionally, the passage notes the need for significant changes in supply chain processes and coordination among stakeholders to effectively adopt blockchain technology.
Analyzing the answer choices:

(A) is incorrect because transparency and traceability are presented as benefits, not problems.
(B) is incorrect because the passage says significant changes \emph{are} required, not a lack of them.
(C) correctly identifies the challenges explicitly mentioned: scalability and energy consumption.
(D) is incorrect because coordination among stakeholders \emph{is} required for adoption.
Therefore, the best answer that directly matches the challenges mentioned in the passage is option C.