How will Blockchain Enable Safer Agriculture?
capitalmarketsciooutlook

How will Blockchain Enable Safer Agriculture?

By Capital Markets CIO Outlook | Monday, December 17, 2018

The blockchain technology is rapidly becoming familiar and promises to solve many problems related to the lack of trust.  The potential of blockchain in agriculture may lead to an exciting shift facilitating transparency and trust in food chains that ensures food integrity. The permanent transactions and distributed data access facilitate data exchange and reduce fraud.

Blockchain could help to improve the quality of the agricultural products in several ways. In Japan, agricultural experts are working on a blockchain platform designed to track the quality of vegetables and other agricultural products. The platform is utilized to record and store a wide variety of data that includes the details of crops grown, sprayed pesticides, and fertilizers used. It also tracks the condition of the soil on which the vegetable was grown and the production environment. Keeping track of the quality of agricultural products helps in boosting the prices of these vegetables.

Smart contract-enabled agricultural insurance on a distributed ledger technology would provide better insurance coverage for a greater number of farmers. Without the need for human intervention to assess insurance claims, the process becomes simple, transparent, and efficient. Smart contracts would remove the risks of fraudulent claims and corruption from insurance providers, as the terms of insurance policies cannot be changed. Even data collected at weather stations could be registered on a DLT to ensure its integrity.

Blockchain in agriculture tracks the machinery maintenance records, sensors, and other equipment. The updated status of the crops is recorded in a digital ledger. The technology will allow the farmers to automate and enhance the efficiency of the existing equipment. It is secure and transparent. It also enables farmers to do real-time management of the stock. All the information can be recorded on the blockchain, and this will help producers and consumers in analyzing, monitoring, and controlling the risks throughout the agriculture process.

Blockchain will help in establishing a direct link between farmers and consumers. It can increase trust between parties, facilitate information sharing throughout the supply chain, and significantly reduce agricultural transaction costs. It is time for farmers to utilize the emerging technology to get what they deserve.

Weekly Brief

New Edition