Why Blockchain Is the Future of Agriculture
In an era where digital revolution is revolutionizing whole industries, the world’s oldest industry, agriculture, is also undergoing its own revolution. At the forefront of the driving technologies is blockchain. While most famously associated with its use in enabling cryptocurrencies such as Bitcoin, blockchain is turning out to be much more than a cash cow. It is now branching out into other industries, including agriculture. The future of blockchain in agriculture is in providing transparency, efficiency, and traceability throughout the supply chain. With the rising food consumption in the world and sustainability issues becoming increasingly important, blockchain could prove to be the solution for a safer and more secure future in agriculture.
Understanding Blockchain Technology
Essentially, blockchain is a decentralized, distributed ledger that makes transactions on many computers in such a manner that it cannot be changed in the past. Each record, or “block,” is linked to the previous one, forming a chain. Once data has been written, it is almost impossible to change, thereby creating an unbreakable and public record of data. These traits render blockchain especially appealing to businesses dependent on complex supply chains, heterogeneous stakeholders, and traceability demands—such as agriculture.
The Food Chain in Farming: Complex and Vulnerable
Food follows a zigzag route from seed to table. Having producers and processors on one end and distributors, merchants, and buyers on the other, with each handling making it more complicated, there are too many opportunities for inefficiency, counterfeiting, food safety violations, and misinformation.
For instance, in case there is a food safety problem—like an outbreak of E. coli in lettuce—it takes weeks to trace the origin. When one traces the origin, in some cases the damage is already done irretrievably, public health is jeopardized, and there are economic losses. Blockchain for agriculture can intervene here and make a life-altering difference.
Improving Traceability and Food Safety
Perhaps the strongest application of blockchain in agriculture is traceability. Blockchain makes an operation possible wherein each step of the way of a product is accounted for inside an immutable book of records. From the crops being harvested through to processing and packaging, to shipment and retailed, transactions are all tractable and can be verified immediately in real time.
Giant corporations like Walmart and IBM already partnered to introduce blockchain technology to food supply chains. On a test program, Walmart was able to trace the origin of sliced mangoes in 2.2 seconds—seven days before. Such efficiency and accuracy can revolutionize food recalls, make consumers safer, and create more consumer confidence.
Avoiding Food Fraud and Providing Transparency
Food fraud—misbranding, counterfeiting, or adulteration—saps the food industry worldwide of billions of dollars annually. Blockchain provides a solution for retribution by making the information regarding origin, treatment, and quality of farm commodities writable and tamper-proof.
People want more and more transparency about what they eat. They would prefer to know if their produce and vegetables are organic, whether the animals were treated in a humane manner, and whether sustainable practices were adopted. Blockchain does all this by imprinting an electronic fingerprint on each product. With a mere QR code scan on a package of food, people could view the complete history of the product, starting right from the farm.
Smart Contracts for Increased Efficiency
In addition to traceability and transparency, blockchain also brings efficiency in agriculture through the use of smart contracts. Smart contracts are program-written agreements that are executed by computers. For instance, a smart contract can automatically release payment to a farmer after confirmation and establishment of delivery of the shipment.
This disintermediates, reduces admin expenses, and speeds up transactions. It could also assist in aiding small-scale farmers who sometimes get delayed payment and bureaucratic processes in negotiating deals with large processors or foreign buyers.
Facilitating Sustainability and Reducing Waste
Blockchain may also be a valuable force in sustainable agriculture. Its open view of the supply chain, blockchain is able to scan for inefficiencies and points where resources are lost. For example, it can monitor carbon footprints of food production, monitor water usage, and institute environmental compliance.
Furthermore, blockchain enables better inventory management. Through posting information on the network, stakeholders become better informed, and this lessens overproduction, wastage, and spoilage. In a world experiencing climate change and a hunger pandemic, blockchain in agriculture can be the solution.
Empowering Farmers and Rural Communities
One of the not-so-well-known advantages of blockchain is that it can be used to empower farmers, particularly farmers in developing countries. Small-scale farmers are generally unable to access banks, insurance, and equitable prices. Blockchain enables them to establish digital identities, receive access to microloans, and even sell on decentralized platforms.
Additionally, blockchain can be utilized for land and title ownership registration, which facilitates resolution of land disputes and ensures legal security for farmers. Such innovations, however, do not only increase the livelihood but also encourage investment in sustainable agriculture for the long term.
Barriers to Adaptation
Although the future for the application of blockchain technology in agriculture is vast, the barriers that it presents are relatively numerous. These include:
Infrastructure challenges: There is little stable internet connectivity or digital literacy in most rural regions, making it challenging to deploy blockchain solutions.
Standardization challenges: Currently, there is no standard method of applying blockchain across various agricultural industries.
Upfront investment: Deployment of blockchain solutions involves upfront investment in technology, training, and integration with current systems.
Data integrity: Blockchain does not let anyone alter data, but valid input data cannot be ascertained. Input flaws or source deceit are still a threat to the system.
In spite of such odds, attempts at blockchain implementation in agriculture are increasingly gathering steam. Governments, NGOs, and corporates are more and more putting money into pilot trials and collaboration in finding its real potential.
The Road Ahead
With technology adoption and advancements, the future of blockchain in agriculture is bright. One can imagine a world with complete transparency regarding where the food came from, fair and prompt payment to farmers, and more sustainable and resilient food systems. Blockchain is not a cure-all for all the issues of agriculture, but it can be a foundation that facilitates easier building of trust, removes inefficiencies, and allows for wiser decisions along the way.
Further down the line, we see the greater interoperability of blockchain with other emerging technologies like the Internet of Things (IoT), machine learning, and artificial intelligence. Together, the technologies have tremendous potential to deploy a seamless system for smart farming in an efficient manner by generating greater productivity across the globe at lower cost.
Conclusion
Blockchain is not a fad; blockchain is an ag revolution. It presents a chance to make an enterprise as important to human life but with such problems more efficient, sustainable, transparent, and traceable. As agriculture accepts blockchain, an opportunity comes by when technology and heritage can combine to feed the world responsibly and fairly.