A hybrid blockchain–AI–IoT framework for low-cost digital MRV in sustainable bioethanol supply chains

Abstract

This study develops a cost-effective digital traceability framework for bioethanol supply chains, addressing compliance challenges faced by small and medium enterprises (SMEs) under the Renewable Energy Directive II (RED II) and Carbon Offsetting and Reduction Scheme for International Aviation. A hybrid Blockchain–Artificial Intelligence (AI)–Internet of Things (IoT) architecture minimizes energy consumption through an optimized Proof-of-Stake and Practical Byzantine Fault Tolerance consensus mechanism. The research integrates a 200-stakeholder international survey, controlled blockchain simulations, smart-contract benchmarking, and Monte Carlo financial modeling. Performance evaluation in a controlled simulation environment demonstrated 1960 transactions per second with sub-second finality, 12-million-gas savings through contract optimization, and compliance latency below 2.1 s. Economic analysis yielded a mean return on investment of 20%, five-year net present value of approximately USD 71,000, and payback within five years in 50% of scenarios. All results derive from reproducible simulations and anonymized data, providing an upper-bound performance envelope prior to field deployment and positioning the framework within emerging hybrid blockchain–AI–IoT monitoring, reporting, and verification systems by explicitly addressing cost realism, readiness heterogeneity, and disruption resilience for SMEs. The framework offers a scalable, energy-efficient pathway for digital compliance in sustainable fuel certification. • Hybrid Blockchain-AI-IoT framework reduces bioethanol certification energy consumption by >99.999% at 1960 TPS • Gas-optimized smart contracts cut computational costs by 57% vs. traditional Proof-of-Work systems. • Economic modeling confirms SME viability: 20% ROI, USD 71,400 NPV, payback within 5 years in 49% of scenarios. • Framework enables RED II and CORSIA compliance with real-time emission verification in renewable fuel supply chains. • International validation across 200 stakeholders in Africa, Asia, EU, and North America demonstrating global scalability.