Blockchain in Agriculture and Food Industry Promotes Sustainable Farming
The use of blockchain in agriculture and the food market has the potential to improve food production. When innovation is merged with modern technology such as blockchain technology, agriculture production outcomes are improved.
According to BIS Research, In 2020, the global blockchain in the agriculture and food market was valued at $139.6 million, with a CAGR of 51.0 percent estimated to reach $1,488.0 million by 2026.
The agriculture and food industries may use blockchain to deal with and control risks identified while maintaining affordability throughout the ecosystem. Farming sustainability may be improved by using blockchain for farmers.
Furthermore, farmers do not have to wait for payments because blockchain technology settles money instantly. Farmers are also exempt from paying any intermediaries or extra charges.
Let’s take a look at how blockchain has benefited the agriculture industry. But first, let us define Blockchain in agriculture.
Blockchain in Agriculture
Blockchain in agriculture includes the utilization of blockchain technology in the agricultural industry to enhance the operational process and achieve economic outcomes. The agriculture sector’s application of blockchain extends from having a sustainable business and reducing waste to educated consumer purchase decisions and having seamless future transactions with fraud elimination.
How Blockchain Works in Agriculture?
The authority controlling the framework of blockchain might be one-sided and seek to achieve specific outcomes by submitting incorrect data. Such platforms are usually vulnerable to cyber-attacks. Entrepreneurs are turning to blockchain and learning how it works to improve transaction security and convenience.
Sample Report of Blockchain in Agriculture and Food Market is available at: https://bisresearch.com/requestsample?id=1248&type=download
Let’s look at some of the applications of blockchain in agriculture:
· Farm inventory management: Many agricultural organizations are not equipped to use cutting-edge technologies to manage their stocks. This really results in waste of produce and resources. Farmers bear the brunt of the losses as well. As a result, the farmers bear a significant burden since they lack the necessary instruments to address the problem.
Blockchain in inventory management can assist farmers by monitoring the storage environment and alerting you when product is about to expire. You will be able to take legal action in this manner.
· Improving the efficiency of the agricultural supply chain: Another great application of blockchain technology in farming has increased production across the agriculture sector. This industry’s productivity is insufficient due to a lack of utilization of automation and innovation. In general, small to medium-sized farmers are more likely to lack access to costly technology to improve production efficiency.
Using a blockchain ledger system can quickly address all of the components, lowering the cost of farming cycles and increasing total production efficiency. The following are some of the advantages of blockchain in the agricultural supply chain.
1. Transparency
2. Security
3. Streamlined operations
4. Analytics
5. Customer engagement
· Upgrading farm management software (FMS): Another advantage of blockchain in agriculture is the modernization of farm management software. Farm management software will soon become mainstream in the real world. Regardless, this product operates on the standard customer service model. As a result, they are still unable to provide their maximal yield as they could with blockchain.
· Agriculture IoT (Internet of things) security optimization: The agriculture business requires IoT devices to monitor farm products. These gadgets can also significantly improve the security and safety of their equipment and may record the weather and the status of the land using the equipment, as well as modify it.
Furthermore, a few technologies may even predict natural disasters from a distance.
What is the Role of Blockchain Technology in Agricultural and Food Security?
Blockchain technology is used to secure data about the nature of the seed, monitor harvest development, and record the crop’s journey.
The data might help improve supply chain transparency by providing immutable records from creation to consumption. Such information is used with data transfer via each stage of the supply network.
Furthermore, if blockchains are used with proper authorization, they can prevent unlawful and unethical production and circulation, which weakens sustainability and food security.
Several difficulties must be overcome before blockchain and other data innovations may assist address food security.
Blockchain implementation should be decentralized in order to include small farmers and rural residents. This will empower sustainable and equitable food systems while also allowing consumers to make educated decisions.
Decentralization may be hampered by issues such as limited digital literacy among the world’s poor and infrastructural restrictions. Blockchain should also be integrated into food security advancement initiatives to ensure that they are responsive to social and ecological values, which are crucial in addressing food insecurity among various populations.
To conclude, blockchain technology will be a game-changer since it will provide tamper-proof, exact information about farms, inventory, credit ratings, and food monitoring and also provides a structured digital ledger for preserving land records and other data, keeping them safe in the event of natural disasters.
