Blockchain in Agriculture
The agriculture-based business is a highly complex industry with numerous groups involved such as farmers, distributors, importers, and retailers. This system is currently erratic and untrustworthy. In such a scenario, practical problems in the food supply chain such as incorrect methods to preserve foods, lack of traceability and transparency to ensure food safety and quality arise. All of these practical issues are now being solved using digital technology: Blockchain. Let us find how Blockchain in Agriculture can be a game-changer for farmers.
What is Blockchain?
Satoshi Nakamoto’s whitepaper titled ‘Bitcoin: A Peer To Peer Electronic Cash System’ outlined a new technology that would use a decentralized network comprised of multiple nodes to prevent the possibility of a single piece of currency being spent twice. This technology was called Blockchain. At its core, Blockchain is a decentralized platform that records transactions between two parties without needing third-party authentication.
How can Blockchain be used in Agriculture?
- Ensuring Transparency and Traceability
Many a time, unauthentic products keep circulating in the food supply chain that can tarnish brands image. Blockchain solutions in agriculture can mitigate such issues by bringing transparency and traceability into account. Information related to the product like batch number, processing details, factory information, manufacturing, and expiry details can be made available to various stakeholders across the food supply chain through a digital ledger. This way, there would be complete transparency regarding where products have come from, where they have been, and what factors/vehicles they have come into contact with.
- Food Production Management
The World Health Organization estimated that 582 million people all over the world suffered from some form of food poisoning in 2010. Blockchain can enable owners in the supply chain to keep a check on affected and contaminated products that can reach in the hands of the consumers if it goes unnoticed. With the help of Artificial Intelligence and IOT sensors, important information like soil quality, fertilizer details, and many other things can be sent to Blockchain’s ledger.
- Managing Finances Through Smart Contract
Through smart contracts, finances can be executed once pre-determined terms and conditions are met. It enables interoperability where transactions between two parties are measured, evaluated and executed in a seamless manner.