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Blockchain Technology and Farming: The Ultimate Solution for Sustainable Living

Publish DateMay 29, 2021
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By 2028, the global blockchain technology market is estimated to grow from USD 3.0 billion in 2020 to USD 394.60 billion.

 

Blockchain technology is coming to the mainstream, and many more industries are interested in adopting this technology. Currently, it is used by businesses to validate, authenticate, and automate transactions.

 

The pandemic has even accelerated its growth.

 

Recent studies also show that blockchain technology is disrupting the farming industry, particularly the food supply chain, with its fascinating features for greater transparency and accountability.

 

What is blockchain?

 

Blockchain is a digital and decentralized transaction ledger system that has the ability to record and track each and every transaction in an immutable record, from the first touch to the last mile storage and delivery of products. Its most powerful characteristics are that it can create a global database, which is extremely secure and can easily be shared.

 

Blockchain Technology enhances transparency and compliance to customers and suppliers while also helping farmers haveaccess to a reliable, decentralized, open marketplace of supply. Through this, they can manage their bookkeeping, receive payments, and share information regarding shipments, certifications, deals, and transfers of their produce.

 

Benefits of blockchain for the food supply chain

 

• Organic Produce Traceability – Blockchain enables tracing food to its origin in just a few seconds in contrast to a traditional retail setting where quality assurance is questionable because of the inability to assure that the food was processed as per the prescribed guidelines. This technology helps in tracking the journey of your product from the farm to the table.


 Crop Insurance – Usually, farmers insure their crops with insurance companies in case of any damages. This is often time-consuming. Blockchain contracts provide a more time-efficient option to claim damages.


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Transaction – The simplified transaction process is praiseworthy as it provides scope to small-scale farmers to enter the global market.


 Global Market Place – Blockchain helps farmers sell commodities at fair prices by lowering transaction fees, thereby supporting smaller farmers to enter the market.

 

Conclusion

 

In conclusion, blockchain is indeed getting a lot of attention and is disrupting the food supply chain. Blockchain solutions are being implemented to improve the efficiency and integrity of the system by not adding more weight to it but by improving its structure.

 

Having an effective and updated Blockchain strategy is necessary as the benefits of Blockchain Technology are too good to be ignored by big players in the food industry.

 

The level of interoperability of the food chain using Blockchain technology can also be a key component in the plan of the Food Safety Modernization Act (FSMA). FSMA is the primary federal law addressing food safety, produced in response to the contamination and outbreaks of Listeria and Salmonella food safety violations.


Author: Somrita Ganchoudhuri

 

Image source: freepik.com



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