Blockchain Technology: A Catalyst For Eco-Friendly Product Validation

The rise of blockchain technology has reshaped competition between traditional and ecofriendly products by offering a means to verify sustainability claims. This study uses game theory to examine how blockchain integration influences market dynamics between retailers selling eco-friendly and conventional goods. Two pricing models are considered: one for a firm using blockchain certification for its eco-friendly product and another for a manufacturer of traditional products. The study assesses two key factors blockchain adoption costs and product quality choices. Findings indicate that blockchain does not inherently expand the market for eco-friendly products but intensifies competition as eco-conscious consumer numbers grow. While blockchain may alleviate some competitive pressures, its presence alone does not guarantee an edge for eco-friendly products. Companies leveraging blockchain must also secure strong bargaining power to outperform conventional products.