Blockchain in Retail Vol.3: Agriculture and Food Industry
Whenever somebody starts to get into the world of decentralization and cryptocurrencies, the first question that comes to mind is: how can we use blockchain in our real lives? We’ve already told you how blockchain can improve the healthcare industry and wearable markets. This time we are going to investigate the influence of distributed ledger technology (DLT) on the sector of agriculture. Here we go.
Blockchain in Food Industry
Probably every human being wants to eat fresh and quality food. Needless to say, that a healthy lifestyle is today’s hot trend. People focus on conscious consumption in order to produce less waste and consume healthy and good food. One of the most attractive features that blockchain offers is the transparency of data. Anyone can track the information required. In this way, when buying goods (including food), consumers can monitor products’ origin and literally trace the movements of a product before it gets on the plate.
Just imagine that you buy a steak in a supermarket. There is a QR-code on it that, once scanned, can show you everything that happened with this piece of meat before you find it in a shop – where the cow was born, how and what did it eat, and so on. People can monitor and evaluate the quality of the products they buy; therefore, they will start to consume healthier food.
In 2018, American multinational retail corporation Walmart together with the leading technology and consulting company IBM, announced that they would work hard in order to digitize the food supply chain process. This, according to vice president of food safety for Walmart, Frank Yiannas, will benefit Walmart’s customers by providing them with a more transparent supply chain.
The same rule works for the wine industry. This September, an Australian agricultural supply chain platform Entrust told about its intention to partner with a blockchain platform Hedera Hashgraph. Entrust is the first Australian project of its kind that wants to bring more transparency and trust to the wine-manufacturing sector.
Users can track the origin of the wine, including the region, sort of grape, storage, and other essential things that influence the quality of the end product. Hedera Hashgraph is capable of executing approximately 10,000 transactions per second, which will allow Entrust platform to work seamlessly and without delays. Such collaboration will eliminate the possibility of acquiring counterfeit wine and save not only Entrust’s income but also consumers’ health.
How Can Blockchain Help Agriculture
The day of crypto mass adoption is coming closer. The new decentralized applications (dApps) have appeared top-notch platforms that use DLT are also started to conquer the market. It seems that blockchain technology can actually facilitate the process of data storage while making it transparent and impossible to substitute. Today, there are several live blockchain-based agricultural platforms that successfully use DLT in their businesses.
But first, let’s highlight the benefits of using blockchain in the agriculture industry.
More Efficient Use of Resources
Without further ado, blockchain can play an important role in increasing yield. The blockchain-based agricultural platform will keep order in all sectors that are responsible for the production, distribution, transportation of products. The information about all sectors regarding agriculture is safely stored on a blockchain giving access to authorized (if it’s a private blockchain) or all users. Thus, a company can monitor the efficiency of labor work, water/seed/other use. Data provided by drones that are usually used in agriculture can also be stored on a blockchain.
This gives a company a complete picture of the use of resources. Thereby, blockchain provides an opportunity to build a strategy that will be more efficient in terms of resource usage. Consequently, companies can increase yield by seeing all the vulnerabilities within their businesses and resolve them on time.
Control over Natural Disasters
“Bad weather” can sometimes be disastrous, especially in the field of agriculture. Although modern technology can predict the possibility of natural disasters, blockchain, together with machine learning and AI, can speed up the process of awareness about an impending disaster. Every user of a blockchain-based application will get a precise prediction and take measures before the disaster can affect anything or anyone. Taking control over natural disasters will considerably improve the agriculture sector, helping not only corporations but also farmers to act accordingly during the disaster.
There are successful cases of implementing blockchain into the agriculture section. One of them is the Australian agtech company AgriDigital.
AgriDigital is a platform that provides blockchain-based solutions oriented to Australian farmers. It allows users to connect to the global grains industry. Users can take under control logistical, risk, and customer issues.
AgriDigital offers two products Waypath and AgriDigital. Waypath enables farmers to track their grain from the field to the point of sale. AgriDigital helps farmers to manage buy/sell/store/move details of grain.
It is always exciting to watch how blockchain technology proves to be useful and needed in different sectors of our lives. Yet, there a few pioneers in the agriculture and food industries that are brave and curious enough to use DLT. We do hope that we can witness a complete crypto mass adoption during our lifetimes. Fortunately, we’ve got all the chance to do so.