Blockchain technology is becoming an increasingly important tool for traceability in the global seafood industry. It promises to bring greater transparency, efficiency and trust to supply chains that often stretch across countries and continents.

For Australian seafood businesses, understanding blockchain and how it applies to traceability is becoming critical to remain competitive, meet consumer expectations, and comply with both domestic and international legal requirements.

Why blockchain is important today

Blockchain is a digital ledger technology that records transactions in a way that is secure, transparent and almost impossible to alter. In seafood traceability, blockchain can be used to record every stage of a product’s journey from harvest or farming through to processing, transport and retail. It is important today because:

• Consumers want clear information about the origin, sustainability and safety of seafood
• International markets demand stronger proof that seafood is legally and sustainably sourced
• Concerns about illegal, unreported and unregulated (IUU) fishing have made traceability a top priority
• Buyers and retailers are increasingly requiring digital supply chain records for assurance
• Paper-based systems are prone to errors, fraud and delays
• Blockchain provides a secure and efficient way to verify chain of custody
• Exporters to premium markets such as Europe, North America and Asia can benefit from blockchain by demonstrating product integrity
• Investors and financial institutions view blockchain as a tool for better risk management in food supply chains
• The Australian seafood industry can use blockchain to strengthen its reputation for high quality and trustworthy products

What commercial seafood producers and catchers need to understand

While blockchain offers significant benefits, commercial fishers and aquaculture operators need to understand both its opportunities and its practical implications.

• Blockchain is not a product but a system for recording and verifying data across multiple parties
• Each entry on the blockchain is called a block, and once added, it cannot be changed
• For blockchain to work, accurate information must be entered at every step of the supply chain
• If incorrect data is entered, blockchain will not fix the problem, it will simply record it permanently
• Operators need to invest in digital tools such as electronic logbooks, sensors, barcodes or QR codes to feed data into the blockchain
• Staff must be trained to understand how to use the system and why accuracy matters
• Blockchain platforms may be run by industry groups, exporters, logistics providers or governments
• Participation usually requires agreement to share data with other parties in the supply chain
• Confidentiality and commercial sensitivity need to be carefully managed when information is shared on a blockchain
• Costs can include software, hardware, training and ongoing system fees
• The value is realised when buyers reward businesses that can prove integrity through blockchain records
• Blockchain is best used as part of a wider traceability strategy, not as a standalone solution

What Australian law requires when using blockchain

Australian law does not have specific legislation requiring seafood businesses to use blockchain. However, if blockchain is used, it must comply with existing laws that apply to fisheries, food safety, trade and consumer protection. The key legal requirements include:

• Fisheries laws at Commonwealth and state level require accurate reporting of catch and fishing activity
• Using blockchain does not remove or replace the legal requirement to submit logbooks or quota reports
• Export Control Act 2020 requires seafood intended for export to be traceable and to meet specific standards. Blockchain records can support compliance but exporters remain legally responsible
• Food Standards Australia New Zealand requires seafood traceability for food safety purposes. Blockchain can store this data but businesses must still comply with the Code
• Biosecurity laws require accurate documentation of seafood movement and health status. Blockchain can assist but does not replace mandatory reporting
• Australian Consumer Law prohibits false or misleading representations. If a business uses blockchain to make claims about product origin or sustainability, those claims must be truthful and supported by evidence
• Country of origin labelling requirements apply regardless of whether blockchain is used
• Privacy laws may apply if personal data of individuals is recorded on the blockchain
• Contract law governs relationships between parties using blockchain platforms, and terms of participation must be clear
• Intellectual property considerations arise if blockchain systems involve proprietary software or trademarks

The risks of using blockchain

Although blockchain offers many benefits, there are risks that businesses must consider carefully.

• Data entry risks: blockchain cannot guarantee the truth of data input, only that it has not been altered afterwards
• Technical risks: reliance on digital systems means exposure to outages, cyberattacks or technical failures
• Cost risks: investment in blockchain may not deliver immediate financial returns
• Legal risks: incorrect or misleading data recorded on blockchain could still breach fisheries or consumer law
• Privacy risks: sensitive business information might be visible to competitors if not managed properly
• Contractual risks: unclear agreements with blockchain providers or supply chain partners could cause disputes
• Market risks: some buyers may not yet recognise or reward blockchain traceability, reducing incentive
• Dependence risks: reliance on a particular platform may reduce flexibility if business relationships change
• International risks: different countries may have different legal views on the use of blockchain records as evidence
• Reputational risks: if a blockchain traceability system fails, confidence in the business could be damaged

Available legal protections

Seafood businesses can use a range of legal protections to manage risks when using blockchain systems.

• Contracts with blockchain providers should clearly set out responsibilities, data ownership, and liability for errors
• Supply chain agreements should include warranties about accuracy of data and indemnities for false information
• Confidentiality clauses can help protect sensitive business data shared on the blockchain
• Intellectual property rights should be clarified, especially where branding or certification is linked to blockchain systems
• Insurance may cover some risks such as cyber threats, product recall or liability claims
• Compliance programs should be updated to reflect how blockchain is used and to demonstrate due diligence
• Legal review of marketing claims linked to blockchain traceability can reduce risk under consumer law
• Dispute resolution clauses in blockchain agreements can provide efficient mechanisms for handling conflicts
• Businesses should seek legal advice before joining blockchain consortia or platforms to understand obligations and risks
• Participation in certified schemes that use blockchain, such as sustainability certifications, may provide added assurance and credibility

Future direction for blockchain in the seafood industry

Blockchain is likely to grow in importance for seafood traceability, but it also has wider potential uses across the industry. The future direction may include:

• Expanded use of blockchain for international trade documentation, reducing paperwork and speeding up customs clearance
• Integration with satellite vessel monitoring and electronic logbooks for real time compliance reporting
• Use of blockchain to link DNA testing results to confirm species identity and prevent fraud
• Consumer facing applications such as QR codes that allow buyers to scan and view verified blockchain data about the seafood’s journey
• Financial applications such as using blockchain for trade finance, payments and insurance in seafood supply chains
• Combining blockchain with the Internet of Things, where sensors automatically feed environmental and handling data into the ledger
• Use in certification and eco-labelling schemes to provide verified proof of sustainability
• Expansion into biosecurity management, where blockchain can record disease testing, treatments and movement permits
• Growing recognition of blockchain records as evidence in legal and regulatory proceedings
• Potential future regulatory requirements in Australia and overseas that mandate blockchain or equivalent digital traceability
• Increased collaboration between governments, industry bodies and technology providers to create standardised blockchain traceability platforms
• Wider use of blockchain for carbon accounting, by linking emissions data to seafood production and transport

Conclusion

Blockchain is a powerful technology that can help the seafood industry strengthen traceability, build trust and access premium markets. For Australian commercial fishers, aquaculture operators, processors and exporters, it offers opportunities to demonstrate sustainability and compliance in a way that is transparent and secure.

At the same time, blockchain is not a simple solution and brings with it legal, technical and commercial risks. Businesses need to understand how blockchain works, comply with existing legal requirements, and protect themselves with strong contracts and safeguards. Looking ahead, blockchain will not only play a central role in traceability but may also open new possibilities in finance, certification, and environmental management across the seafood industry.