Let’s dive deeper to get a better understanding of blockchain technology, why there is a necessity for blockchain in agriculture, working of blockchain in agriculture, and many more interesting topics related to blockchain.
Here are the following topics we are going to discuss:
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What is Blockchain?
A blockchain is a decentralized database that maintains a public ledger of all digital events or transactions executed and shared among participating parties.
It enables peer-to-peer transactions thereby eliminating third parties from the scenario (banks/financial institutions/state, in the case of the traditional mode of exchanging currency) and ensuring transparency as well as cost-effectiveness.
Modern cryptocurrencies, which get their name from the extensive use of cryptographic functions, are built on blockchain technology. To digitally sign and securely transact throughout the system, users use public and private keys.
When we discuss blockchain, we mainly focus on the cryptocurrency use case since that is the primary use of the technology today; however, there are other growing sectors where blockchain can be applied.
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Why do we need Blockchain in Agriculture?
Agriculture is one of the most important sectors where blockchain technology has the potential to tackle wide-ranging concerns with product stealing, traceability, price fraud, and customer distrust. The development of a more reliable, sustainable, and secure agri-food system is possible with the use of blockchain technology.
AgriDigital, a leading independent digital grain firm, completed the world’s first settlement sale of 23.46 tons of grain on a blockchain in December 2016. Since then, more than 1,300 customers have used the cloud-based system to process approximately 1.6 million tons of grain and $360 million in producer payments.
The AgriDigital company’s success is used as motivation for the future application of this technology in the agricultural supply chain. AgriDigital is now working to develop reliable and effective agricultural supply networks using blockchain technology. For this very reason, the demand for blockchain technology can see progressive growth in the agricultural field.
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How can Blockchain be used in the Agriculture Sector?
AgriOpenData blockchain is a cutting-edge digital technology that is widely used in the agriculture sector to ensure the traceability of organic and guaranteed products across the whole agri-food chain in a transparent, and secure way.
The quality and digital identity of goods (seeding, treatments, crop, IoT, processing, storage, distribution, etc.) may be certified by this integrated system, ensuring authenticity to end users and boosting the caliber of the agri-food industry.
To enhance the transparency of the organic food supply chain, blockchain technology was utilized to create smart contracts for each physical product, which were then deployed on a blockchain network.
Every transaction and event associated with a product underwent validation by peers within the blockchain system, and a token-based mechanism was implemented to signify the reputation of farmers with regard to their products.
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Application of Blockchain in Agriculture
Through increased productivity, transparency, and traceability, blockchain technology has the potential to completely transform the agriculture sector. The possible uses of blockchain technology in the agricultural sector are mentioned below::
- Supply Chain Management: Agricultural products may be tracked using blockchains to provide an effective and transparent supply chain in the agriculture sector. Blockchain technology has the ability to record every transaction and movement of goods.
- Food Safety: By offering a safe and immutable record of the product’s journey from farm to table, blockchain can assist in increasing food safety. This enables targeted recalls of contaminated items and can assist in locating the source of any contamination.
- Land Registry: Blockchain can be used to establish a safe and transparent land registry by reducing the risk of land disputes and improving access to credit for farmers.
- Payment Systems: Blockchain technology provides secure and efficient payment systems for all agriculture transactions. With the use of cryptocurrency, farmers and buyers can easily neglect the high fees offered through traditional payment systems which can decrease the probability of getting defrauded.
Future Scope of Blockchain Technology in Agriculture
In the coming future, the growth of blockchain technology has the ability to drastically change the agriculture sector. The use of blockchain technology in the agricultural field enhances the transparency, efficiency, and sustainability of the product. Moreover, it has the potential to alter how we produce, process, and consume agricultural commodities.
There are several blockchain-based applications that can benefit buyers, sellers, purchasers, and consumers. Just a few of these applications include supply chain management, smart contracts, agricultural management, carbon credits, and traceability.
As more and more stakeholders in the agriculture industry realize the potential of blockchain agriculture technology, we can expect to see a wave of innovation that transforms the industry for the better.
Conclusion
Using blockchain for agriculture has enabled farmers to earn more returns as compared to traditional approaches. In the future, the implementation of blockchain technology offers a promising solution to create a safer, more reliable, sustainable, and more efficient agri-food system.
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