Blockchain is a distributed ledger technology that could revolutionize how we farm, handle livestock and produce food. Recently, it has been used in the medical field. But how can blockchain be used in agriculture?
This article explains how blockchain can be applied to the agricultural industry through three use cases: animal identification, storing data about food products and implementing self-executing programs for farms.
Blockchain can solve the problem of food safety. As a distributed ledger, it can store all the data about each product from the farm to tables. It would be much more efficient than having one central database that is not easily changeable.
Most importantly, blockchain could save human lives. Using blockchain, the food supply chain could be monitored and traced, reducing the number of deaths.
Uses of Blockchain Technologies in Agriculture
Track all information about plants: Blockchain tech can track all information about plants, such as germination and production. This could help farmers inventory their crops efficiently online.
Control waste and fraud in food production: Blockchain can also control either waste or fraud in food production. For example, it can store data about the dates and origins of products, so the buyer can ensure that they are getting good quality products.
Seed quality: It can also be used to ensure seed quality. Blockchain can record the data about the planted seeds and their growth patterns, which is useful for farmers to know how their seeds are doing.
Restaurant authenticity: Blockchain tech can also be used to verify the authenticity of products in food for restaurant authentication. If a restaurant wants to prove that its food is made from fresh ingredients, it could use this technology to validate its authenticity.
Traceability of agricultural products: Blockchain can also facilitate the traceability of agricultural products. For example, the company can use it to track its sources or deliveries of products. This will help the company see where its food came from and whether it is authentic.
Food safety network: IoT (Internet of Things) monitors and records food safety networks, so companies can ensure that their food products are not contaminated.
Prevent counterfeit products in the food industry: Blockchain could also be used to prevent counterfeit products in the food industry. Keeping track of food products’ origin and delivery could ensure that the food is authentic.
Crop growth: Blockchain tech can track the crops’ growth stages online, from seedling to harvest. This could help farmers know whether their plants are growing properly.
Buyers and farmers can be paid directly: Blockchain tech allows for direct payment between buyers and farmers. It avoids the intermediary, so buyers can easily purchase products from their farmers.
Smart contracts: Smart contracts on blockchain can manage agreements between parties. In agriculture, smart contracts could be used to ensure that both parties are properly fulfilling their agreements.
Why can blockchain technology be a game-changer in the agricultural field?
Blockchain technology is not just used in the financial industry. It can revolutionize how we farm and create opportunities for new business models in agriculture. The following are some of the advantages of blockchain in agriculture:
It is cheaper, more secure, and more transparent than traditional payment methods. It is less prone to penalties for fraud or theft. It also does not allow third parties, who could use it for fraudulent purposes to have access to personal data.
Blockchain technology can help farmers get international buyers and compete globally.
- Providing data on livestock and food can ensure that the food is safe for consumers.
- By storing data securely, blockchain tech can prevent fraud or counterfeit products. It can even track the origin of all products back to their farm of origin, so consumers will know where their food comes from.
- With blockchain, farmers can get paid directly by buyers. There will be no need for intermediaries to collect money from sales. This will increase the amount farmers get and reduce costs on their end.
- Blockchain technology can help farmers improve their businesses using more efficient methods. It can help them get more money from sales and reduce transaction costs due to the use of smart contracts.
- Blockchain technology could help small-scale farms succeed in the international market.
With smart contracts, farmers and buyers can agree to certain agreements and rules that must be met before the transaction occurs. For example, if certain standards are not met for particular products, it will not execute the transaction.
Blockchain technology is secure. It can help farmers achieve safety in their transactions with international buyers and meet international standards on food products.
Due to its transparency and reliability, blockchain can help attract more buyers from the international market.
Although there are concerns about how this technology will affect the livelihoods of farmers, it is undeniable that blockchain has the potential to improve the agricultural industry, making it more efficient and viable for small-scale farmers.
Blockchain tech can help small-scale farmers earn a bigger share of profit, which they might not get from traditional intermediaries. By removing intermediaries from the transaction process, blockchain has the potential to reduce costs on both sides. Therefore, farmers can get more revenue while buyers pay much less for their food products.
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