Blockchain without Blocks: Why Cryptographic Finance Fails to Produce Trust in Digitized Supply Chains

Abstract

Blockchain technology has been widely heralded as a transformative tool capable of establishing trust in digitized supply chains through cryptographic finance, immutability, and decentralized ledgers. However, empirical evidence and recent analyses suggest that these technological mechanisms alone are insufficient to generate holistic trust among supply chain stakeholders. This study critically examined why blockchain adoption often failed to produce sustained trust, despite enhancing transparency, traceability, and data integrity. A qualitative, theory-driven methodology was employed, analyzing peer-reviewed literature across supply chain management, financial technology, and digital governance domains. The findings revealed that trust remained deeply rooted in social, relational, and institutional dimensions, which blockchain technologies could not replace. Off-chain data dependencies, governance gaps, regulatory ambiguities, and power asymmetries emerged as key factors undermining trust formation. Furthermore, blockchain often displaced trust from human and institutional actors to opaque technical systems, reducing accountability and stakeholder confidence. The study concluded that blockchain should be conceptualized as a supportive infrastructure for trust rather than a substitute for relational and institutional mechanisms. Recommendations included integrating blockchain with hybrid governance models, legal frameworks, and inclusive participation strategies to enhance trust resilience. The study also identified future research directions focusing on cross-industry comparisons, socio-technical interactions, and emerging blockchain alternatives. These insights contribute to a more nuanced understanding of the socio-technical limits of blockchain in supply chain digitization and highlight the critical role of governance and institutional alignment in sustaining trust.