Blockchain technology is an emerging digital technology that significantly helped ubiquitous transactions among distributed untrusted parties without the need for intermediaries like banks.
For instance, Bitcoin- is a peer-to-peer electronic cash system that allows reliable financial transactions without demanding a trusted central authority like banks and financial institutions.
Unlike other industries, the agriculture and food industry is also evolving towards blockchain technology. Innovating production techniques and technologies are used to meet demand through AI and food automation.
Our findings highlight the fact that blockchain technology is a boon for agricultural industrial growth.
What Is Blockchain Agriculture?
As per layman’s language, blockchain agriculture indicates the use of blockchain technology in the agricultural sector. To, improve the operation process and release confusion like recalls due to contamination, counterfeiting, increased regulatory requirements, matching changing consumer preferences, and increased global competition for profitable results.
The use of blockchain in the agricultural industry ranges from sustainable business and waste reduction. Also, it informs client purchasing decisions and offers a smooth futuristic transaction with a transfer-proof gateway.
Along with the advancement of blockchain agriculture, a new term has surfaced in the market, Smarty Agriculture. It includes utilizing ICTs (information and communication technology), blockchains, and modern technologies for covering environmental impact.
How is blockchain used in agriculture?
You already know that blockchain integration is transforming the shape of the agricultural industry. But do you have any idea how it is used?
Many companies are hiring blockchain development companies to transform industrial behavior. It secures and ensures ease of transaction.
So, let’s acknowledge the uses of blockchain in agriculture.
- Farm Inventory management- Blockchain is a cutting-edge technology in inventory management as it offers to monitor the storage climate and keeps farmers informed about the expiry of products. It creates legitimate measures for farmers and agricultural practitioners.
- Enhanced agricultural supply chain- It expands the productivity of agriculture throughout the industry. It mainly benefits small to mid-scale farmers to avoid costly technologies to increase production proficiency. The future of blockchain integrates the ledger system that rapidly addresses all the components present. It also diminishes the cost of the farming cycle and improves overall yield efficiency. It benefits the supply chain with-
Transparency-Security- Streamline Operations-Analytics-Customer engagement
- Modernized Farm Management Software (FMS)- Blockchain also offers modernized FMS that can take real standards to a different level. It is security-based software that performs blockchain protection. Hence, farmers can relax over cyber hacks.
- IoT optimization security- It helps monitor the farm produce. To say, blockchain can optimize security with IoT devices. Also, these devices offer security & safety. It allows recording climate and land state, where some forecast natural calamities. Blockchain technology mainly defends IoT gadgets and supports superior networking systems.
- Microloan facility- Blockchain supports microloans mainly to small to mid farmers conveniently. Unlike banks, it doesn’t charge a high rate of interest and settles issues for good. It creates a global network of lenders from where farmers can easily take loans with small interest costs.
- Fair price distribution- Producers use blockchain technology to reach a wider audience. It creates an equal distribution of price and assures the value they deserve.
Impacts of Blockchain Technology on Agriculture And Supply Chain
The impact of blockchain technology on agriculture and the supply chain is high. It brings breakthroughs in the agricultural sector with its high potential.
Some major roles of blockchain technology include:
- Gathering Information – Blockchain technology is used for solidifying data on the nature of the seed, tracking, harvesting, developing, and recording the crop journey after leaving the farm. It also improves the transparency in supply chains with immutable record insights like creation to consumption. This information can improve data transfer through each progression of the supply network.
Also, blockchain applications with appropriate approval can forestall illegal and unethical production. It enhances sustainability and food security.
- Tracking Pathways – In the present scenario, there is proof that blockchain and big data innovations add food security globally. As per research, more than 94.32% of people always want to know about their food details. The details can only be available with the help of blockchain technology. Companies bit a transparent process so that people can have crystal knowledge about their products, like area of origin, quality certificates, chemical and pesticide presence or not, production standards, and more. Further noticing with the help of blockchain development services, many agricultural software development companies are enjoying benefits in the industry.
- Data & food future – Blockchain and other data innovations need to be decentralized for small farmers and rural individuals. It is because the execution empowers a sustainable and fair food system and permits buyers to settle on informed choices. Sometimes, blockchain gives additional duty to the end users, along with some difficulties like restricted digital proficiency among global infrastructure constraints. This later can decide the decentralization. Similarly, blockchain coordinates more with food security advancement and improves social and ecological values among different groups. The big data harnessing blockchain technology can improve the decentralized food distribution framework and uphold sustainable food creation with responsible food production.
What are the advantages of Blockchain technology in agriculture?
Blockchain technology highly beneficial in 2023, also, for the agricultural industry it is a boon. For instance, it can promote security, one of the best-distributed ways to perform transactions among different untrusted parties. It is the key element in agriculture and food supply chains. It satisfies all the actors involved from the raw product to the supermarket shelf.
It is an advanced distributed ledger technology with the potential to enhance food safety. It brings together a diverse group of stakeholders like farmers, processors, retailers, and consumers in one place.
Undoubtedly, with the combination of blockchain technology with IoT, it is now possible to generate, manage, and communicate data effectively.
Further, this blog examines the impact of blockchain technology in agriculture and the food supply chain.
Which agriculture companies use blockchain?
Many companies are still working with blockchain technology. Some of the top companies include:
- Bumble Bee Foods- With blockchain technology this company improves product traceability while deterring acts of food fraud. From catch to sales, all the products are traced.
- Nestlé- Nestlé used blockchain technology to approach and enhance product traceability.
- Walmart- For digitizing the food product supply chain while enhancing Tech-Enabled Traceability and decreasing the time it takes to track the source of food contamination, Walmart uses blockchain.
- Kraft Heinz- The tracking need of supply chain from farms to their production facilities. It is used for the same by Kraft Heinz.
Conclusion
Blockchain technology is really effective and beneficial for the agricultural industry. It is a game-changer and boosts the farming industry massively. Also, combing the food supply chain and agricultural chain can process the existing tradition.
With the massive benefits and utilization of blockchain technology, there has been a continuous attempt at full adoption for a massive potential improvement in the agricultural sector.
