The integration of blockchain technology into global supply chains has emerged as a pivotal innovation, promising to enhance sustainability by addressing long-standing challenges related to transparency, traceability, and operational inefficiencies. As supply chains become increasingly complex, traditional management systems often fail to provide sufficient oversight, leading to fraud, inefficiencies, and difficulty in monitoring environmental and social standards. Blockchain, initially conceived for cryptocurrency, offers a decentralized, immutable ledger that ensures transparency and accountability at every stage of the supply chain. This paper explores the potential applications of blockchain to enhance sustainability, focusing on its ability to track product origins, monitor environmental impacts, and ensure compliance with fair labor practices. The technology facilitates the integration of environmental and social standards, ensuring that businesses can meet sustainability goals, reduce their carbon footprint, and promote ethical sourcing. Additionally, blockchain’s ability to automate transactions through smart contracts can further streamline operations and enforce sustainability commitments. However, the widespread adoption of blockchain faces significant barriers, including scalability issues, high energy consumption, and the lack of regulatory frameworks. The paper examines these challenges and proposes solutions for overcoming them, including the development of energy-efficient consensus algorithms and the creation of global regulatory standards. Despite these obstacles, blockchain technology presents significant promise in reshaping global supply chains by making them more transparent, efficient, and aligned with sustainability goals.