Blockchain in Agriculture
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Blockchain in Agriculture
Blockchain in agriculture might not seem that charismatic like in retail, finance or healthcare sectors, but its certainly promising one that can completely transform this sector which suffices our basic needs. Agricultural sector which is plagued with inefficiencies can be revamped through Blockchain where trust and transparency can be ensured right from the farms to the stores.
How can Blockchain used in Agriculture?
1- Food production and farming practises
Blockchain which comes coupled with IoT is remodelling this industry right from the farmer to the manufacturers or grocers. Blockchain is all about assisting to make farming very sustainable by optimising water, fertilizer and uses of labour in a simplified manner. Eventually it can cater to the increasing needs of food demand by rising population, which can be done with minimal resources with Blockchain.
2- Food supply-chain
When food safety comes in mind, food supply chain tracking becomes critical and Blockchain lets us to explore the source from where the food product came or originated, thus gives us clearer picture that eatables are safe to consume or not. While when we take current management of supply chain, to confirm the provenance of the products, it becomes way challenging for food processors’ and retailers alike. Blockchain even mitigates the threats of food adulteration to a large extent and bring trust and transparency in the food supply chain ecosystem.
3- Controlling of weather crisis
There are many crops which require certain weather to grow and the unpredictable nature of weather is always a cause of concern to the farmers. Here Blockchain plays an important part in making smart agriculture, where weather stations send essential information to the Blockchain network, from which farmers can take timely preventive actions. Even during claiming an insurance farmer can quickly claim the amount through the blockchain and transparent and immutable behaviour of the blockchain will enable insurance companies to process it faster. Here the smart contracts can play an important role in fetching the required information, further after the claim is approved farmers will automatically get the requested amount in their respective wallets in much quicker time.
4- Management of agricultural finance
Blockchain can be used to weed out the inefficiencies in terms of financial activities in the agriculture. In place of traditional auditing, the automated auditing process can make the audit environment cost-effective. Even the performance of agricultural value chains are affected adversely in case they are unable to access financial services, which ultimately leads to where producers cannot maximize their yields and buyers face struggles ensuring an efficient supply of commodities.
How does Blockchain works in Agriculture?
Blockchain represents as one of the technologies which is most promising to provide more consistency in wide areas of the agricultural industry. It can work over different areas in agriculture namely
1- Managing farm inventory
Blockchain technology play important role in minimizing post-harvest losses by proactively monitoring of crops with the aid of various sensor based IoT devices. In the decentralized ledger of Blockchain, storage of such information is done, that is easily accessible for all players in a given operation will provide more seamless communication regarding when harvest to be done or other storage related works
2- Enhancement of agricultural supply chains
Through Blockchain technology producers can increase their revenues by ensuring though blockchain technology that they are participants in a supply chain that targets a demographic willing to pay more for provenance and quality. Such commodity tracking and linking agricultural shipping and monitoring processes using a shared, decentralized blockchain ledger adds value to agricultural products, leading to quality and ethicality in the agricultural sector.
3- Community supported agriculture
Blockchain also plays role in bringing together the members of a community, who pledge to support a farming operation financially in return for fruits, vegetables, or whatever else a farm may produce is said as community supported agriculture
What is Blockchain In Agriculture?
The Blockchain when applied in the agricultural sector can track the provenance of food which helps to create a trustworthy food supply chains and build trust between producers and consumers. Therefore, by such trusted way of storing data, it facilitates the use of data-driven technologies to make farming smarter. Apart that when the smart contracts are used, it assists in timely payments between stakeholders that can be triggered by data changes appearing in the blockchain. Blockchain along with the addition of IoT can simply transform agriculture and be said as ‘Smart Agriculture’ in other words.
How to use Blockchain in Agriculture?
Blockchain has numerous uses in agricultural activities, right from
1- Farm Activities
In the initial stages of cropping the temperature and other things like soil data can be monitored which can further help decide the farmers when to sow the seeds. Collection of data regarding water and pesticide spray could be collected from IoT devices. Weather and wind monitoring or some upcoming natural calamities could be known in advance.
2- Post farm storage and distribution activities
Stringent quality controls could be achieved. Sensor induced complete data sharing regarding transportation. Food safety data using data collected by inspection.
3- Retail & Marketing
Billing data. Transparency in taxes. Universal compliance. All these incoming data further gets processed by smart contacts and saved over the Blockchain network by hashed, which makes it immutable.
Why Blockchain in Agriculture?
Embracing Blockchain in agriculture gives umpteen benefits which far outweigh the costs of implements in the long run. Some of them are
1- Food safety and improved quality control
Blockchain enhances the transparency to the supply chain by removing by ineffective processes and ensure optimal quality control conditions. With Blockchain various IoT devices can be connected that allow farmers to monitor factors such as the soil quality, pests, and irrigation that could affect their crops. In case there is some problem, farmers can be notified to make adjustments.
2- Increases traceability in supply chain
With the increase in traceability in the supply chain, it can solve the problem of consumers to know from where does their product comes and know freshness of it. Reduction of fraud in food industry such as false labelling or avoiding intermediaries whom hoard large stocks of produces to create artificial shortage, from which producers get fairly paid as well as benefits consumers.
3- Increase in efficiency for farmers
The need for the multiple apps will be mitigated, notes and spreadsheets to record and manage their data. All these complicated and time-consuming works can be taken care by Blockchain, where farmers can store their data at one place, which can be accessed by those need it.
4- Fair payment for produces
Blockchain can ensure fast and fair payments for their produce to the farmers, as compared to the current system. Where it takes weeks or perhaps months to ensure their payments in full, that too without a significant portion of their income being taken away by third party. In such scenario the need for the middlemen would be eradicated, where farmers can directly connect with retailers by application of smart contracts or even better fair bidding can take place over an online platform for their produce.
Global Blockchain in Agriculture market
Globally blockchain in agricultural market is slated to dominate the future global business with improvement in logistics, quality assurance, environmental farm plans, better nutrient management plans along with that it will lead to effective implementation of big data applications, AI applications, and precision agricultural activities.
1- Factors in growth
The increase in demand for supply chain transparency due to the rise in cases of food fraud, and rising concerns over food wastage. Blockchain can help in replacing slow manual processes in farming, reinforce traceability, and minimize food supply-chain IT transaction costs can be said to factors which led to growth of blockchain in agriculture.
Classification of global blockchain in agricultural market can be done on basis of application which is further segmented into product traceability, smart contracts, risk & compliance management, governance, and payment & settlement. Further upon the provider the market is classified into application and solution provider, infrastructure and protocol provider and middleware provider. Then on the basis of organizational size, the market is sectored into large enterprises and SMEs
3- Regional analysis
In the global blockchain in agriculture market can be divided into five regions mainly
Middle East and Africa
Due to the presence of major companies such as IBM and Microsoft in the U.S, North America is pegged to account for the largest share of the global blockchain in agriculture market. The benefits which Blockchain offers in agriculture like transparency, land registry and payments can be said to be the factors which will lead to its growth. Looking by potential of the agriculture sector in APAC in countries such as India and China, key players of Europe and the U.S. are fast exploring the untapped opportunities here.
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Hashgraphs are also a kind of dispersed ledger technology. Even a hashgraph is a patented algorithm which guarantees that the benefits of the blockchain (decentralization, supply, and safety through using hashing) minus the disadvantage of reduced trade rate.
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