The project “Potential Analysis of Blockchain Technology in Forestry” was carried out over a one‑year period from 15 November 2022 to 15 November 2023 and was reported in November 2023. It was financed under the German federal grant scheme with the identifiers 2221NR077A, 2221NR077B and 2221NR077C. The consortium consisted of MRK Management Consultants GmbH, the Albert‑Ludwigs‑Universität Freiburg and Xylene GmbH. MRK took responsibility for overall project leadership, coordination and data collection through interviews and surveys; the university conducted the scientific analysis and evaluation of the gathered information; Xylene contributed technical expertise for the assessment of blockchain implementation scenarios.
The study focused on the timber supply chain, also known as the chain of custody, where transparency and traceability are currently limited. By applying a structured methodology that included desk research, a requirements catalogue, expert workshops and a survey of stakeholders, the project identified a strong interest in digitalisation and specifically in blockchain solutions among large forest owners, forestry service providers and wood industry companies. The analysis showed that blockchain could close information gaps, provide immutable records of provenance, and reduce the need for pre‑financing by early‑stage actors. These benefits were expected to increase the speed and reliability of material and information flows, thereby enhancing overall value creation in the sector. The potential market impact was summarised in a qualitative table, indicating high potential for domestic forest owners, service providers and wood manufacturers, and medium to high potential for foreign actors.
Technical results highlighted that a blockchain‑based system could enable end‑to‑end traceability from the original tree to the finished product, thereby increasing consumer trust and potentially improving market access for sustainably sourced timber. The study also identified key success factors such as interoperability with existing forest management software, user‑friendly interfaces for non‑technical stakeholders, and the need for clear regulatory alignment. While the report did not present quantitative performance metrics, it emphasised that the introduction of blockchain could reduce information latency and improve auditability, which are critical for compliance with emerging sustainability standards and certification schemes.
The project’s deliverables included a comprehensive report, a roadmap for further development, and the presentation of findings at two major industry conferences, FORMEC 2023 and Ligna 2023. The expert workshop held in September 2023 served to validate the proposed use cases and to refine the implementation strategy. The consortium’s collaborative approach ensured that the technical assessment was grounded in practical industry needs, while the academic component provided a rigorous evaluation of feasibility and potential impact.
In summary, the one‑year project demonstrated that blockchain technology holds significant promise for enhancing transparency, traceability and efficiency in the forestry supply chain. The collaboration between a management consultancy, a university research team and a technology provider enabled a holistic assessment that combined stakeholder insights, technical feasibility studies and a clear roadmap for future implementation. The findings suggest that, if adopted, blockchain could strengthen consumer confidence, streamline operations, and support the broader sustainability goals of the forestry sector.