The technology has found success in many aspects of modern business today, from finance to supply chain management. However, one area where the technology has yet to fully integrate is agriculture.
As a large and important segment supporting the financial dependence of many people in most countries, agriculture faces various issues that threaten the long-term viability of the industry. From the employment of labor to a competitive economy, it is necessary to manage; otherwise, the ecosystem would collapse. In this scenario, Blockchain in the agriculture industry will undoubtedly be a game changer. Statistics indicate that the value of the global blockchain market in the food and agriculture market, which was around US$32.2 million in 2017, is expected to grow to around US$1.4 billion. by 2028.
The global food system is a complex process. An agricultural supply chain contains many elements between the farmer and the end user. It is rare in today’s interconnected world for a farmer to sell his produce directly to customers. There are many components in between, from collection to transportation to processing and distribution. Technologies such as blockchain and IoT can help tie all these different components together and integrate the whole process into a shared ledger.
Track and Trace: Blockchain will enable accurate and tamper-proof data on farms, inventories, credit scores and food tracking. As a result, farmers no longer have to rely on documents/files to capture and maintain critical data. Indeed, innovation coupled with sophisticated technologies such as blockchain and artificial intelligence (AI) offers game-changing possibilities for agriculture. Customers will know where their food is grown and under what conditions, farmers will be able to better understand where their crops go once they leave the farm and take more ownership of their products. Each of the business partners who are in the middle of the supply chain will also be able to have a complete view of the chain, further increasing trust between everyone involved Blockchain in the agriculture industry can help control risk predictable while maintaining affordability across the ecosystem.
Internet of Things: The Internet of Things (IoT) refers to devices connected to each other on a network. These devices collect data about their environment, which is then processed by artificial intelligence algorithms to understand human behavior. This technology is used in a variety of industries, including manufacturing, healthcare, agriculture, and retail. Precision farming, preventive maintenance, analytical tools and smart handheld devices for livestock are all made possible with this technology. It works based on sensing devices and network connectivity, allowing real-time automatic monitoring of farm resources.
Digitization of assets: Digitizing assets can improve overall efficiency. Each of the partners involved in the process will have their own copy and proof of ownership. Moreover, the inspection and regulation process can be made much more efficient due to the existence of digitized assets which are all linked together.
Remote sensing: Farmers can obtain, assess and analyze crop and soil health issues at different stages of production conveniently and cost-effectively using remote sensing data of soil, area, markets, etc. By seeing potential problems early on and giving us the opportunity to find solutions, it not only saves time, but also manpower and resources.
Blockchain: Having a seamless farm-to-kitchen model can help companies provide customers with premium products. The ability to deliver authentic products improves the trust factor between customers and brands and thus increases customer loyalty.
Blockchain will help in the implementation of a ledger system for the agricultural sector that can quickly solve all related problems, from reducing the cost of agricultural cycles to increasing overall production efficiency. It will provide immutable records from creation to consumption. This data can be used in conjunction with data transfer between each stage of the power network. Additionally, it could stop the circulation and production of illegal and unethical material. A linked network in agriculture can help prevent food waste and ensure that sustainability and ethical standards are met at every step. This level of transparency in the system will allow for greater accountability, incentivize stakeholders to implement best practices in their business, and help guarantee a price when it comes to food.
The opinions expressed above are those of the author.
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