This research examines how Blockchain-Facilitated Supply Chains (BFSC) contribute to improving the performance of halal supply chains and enhancing firm competitiveness, particularly within Indonesia’s halal food and beverage industry. The study focuses on three fundamental blockchain capabilities—traceability, adaptability, and agility—and analyzes their influence, both direct and mediated, on a firm’s competitive position through halal supply chain performance. The application of blockchain is shown to increase operational efficiency, support halal standard compliance, and strengthen consumer trust. In addition, the study underlines the critical role of consumer perceptions, especially in terms of trust and awareness, in shaping purchasing behavior. By employing the PLS-SEM method, the study finds that traceability stands out as the most impactful factor, significantly boosting both competitiveness and halal supply chain effectiveness. Meanwhile, adaptability and agility exhibit significant effects on halal supply chain performance but do not directly enhance competitiveness. Furthermore, halal supply chain performance itself does not show a significant direct influence on competitiveness, implying that its role may be more indirect or context-dependent. These results support the view that traceability functions as a strategic asset in line with the Resource-Based View (RBV), offering transparency and compliance advantages that elevate competitive strength. While adaptability and agility enhance responsiveness and efficiency, they must be aligned with broader strategies or channeled through supply chain improvements to effectively impact competitiveness. This study contributes to the evolving discourse on halal supply chain strategy by underscoring traceability as a foundational element for building long-term trust, accountability, and strategic differentiation in an increasingly transparent and dynamic market landscape. ©2026 IEEE.