5 Promising Features of Blockchain in Agriculture

Posted By : Asha Devi | 27-Aug-2018

Though the implementation of the blockchain technology in agriculture is in its nascent stage, it is anticipated that it would help in transforming the operations from farm to table and solve many of the existing agri-related problems.

 

Let’s have a quick rundown of the promising features the blockchain may serve in the agriculture domain.

 

Blockchain in Agriculture

The Blockchain is best known for its secure database. It is a decentralized ledger facilitating the authenticated users to record the transactions in the data log on the computer network. The transaction gets approved through consensus and is cryptographic.

 

This secure mode of the digital transaction has attracted the global users across the industries as the data stored is secure, incorruptible, and, does not need middlemen.

 

Evidently, blockchain is getting ingrained into most of the industrial sectors like Healthcare, Supply chain, Government, Agriculture, and, more though it started with Banking and Finance.  

 

Let’s move forward and seek the value of this technology in Agriculture. A few of the practical applications of blockchain in agriculture are briefed below.

 

1.Transparency to the crop supply chain:

 

The blockchain ledger records the data and makes it available in real time initiated from the planting of the seeds/seedlings to delivery of the products.

 

This helps to identify the poor processes in the full chain, identify the loopholes in the case of food safety outbreak, and take appropriate measures to rectify the same.

 

The consumers are able to know about the food they are buying like from where it is produced, processed, and even the date of production. This solves the food fraud like false labels, quarantine issues, and middlemen issues.

 

It educates and facilitates the farmers to produce the crops that meet the regulatory compliance in using the seeds, testing soil quality, fertilizer dosage, farming practices, processing, certifying agencies, and, etc. because, the data is streamlined and verified throughout the process.

 

2. Smart Logistics:

 

Logistics is the great challenge in the supply chain owing to the perishable food products, distant deliveries, uncertain weather conditions, packaging, and, etc.

 

The producers are able to ensure the quality of the deliverables, and even get instant payment via blockchain without the middlemen.

 

The farmers are able to track their resources from the field to storages, retailers, and the consumers. This helps them for decisive farming by gaining an insight into the growth patterns.

 

As the entire supply chain is transparent, it helps to lessen the food wastage, regulate profit for the stakeholders, and, thus giving the benefits of revenue for the farmers.  

 

You May Also Be Interested in Blockchain in Supply Chain Management

 

3. Litigation free leasing or registration of lands:

 

Blockchain maintains transparency in the sale and purchase of lands. It prevents fraud as the recorded data is accessible in public.

 

Smart contracts help the corporate farming companies and the farmers with an easier contract for lands on a lease. Ethereum blockchain helps for smart contracting that helps the farmers to gain profit, avail simplified and transparent land process free of litigation.

 

This cuts cost even for the government in maintaining the records which are costly and labor intensive as of today.

 

Moreover, the distribution of subsidies become transparent and plugs the loopholes in the existing system.

 

4. Internet of Things:

 

The Internet of Things facilitates the producers in monitoring their land’s soil quality, manage the pests, customize the irrigation and fertilization process for specific crops, and, etc.

 

The sensors in the grain storage track the quality of the stored grains, which would promote further research and development.   

 

The huge data acquired by these sensors in real time gets accumulated in due course. Bringing the blockchain in the IoT helps to derive data and operate in a more secure and intelligent manner.

 

5. Gain New Markets:

 

The farmers are provided with great opportunities to enter a new market to gain profit. The market players who fell apart or lagging behind may take a chance to take the lead by understanding the market scenario in a more systematic and realistic manner.

 

Final Thoughts:

 

Blockchain has every potential to solve the problems faced in the agriculture domain.

Adoption of blockchain in the apps and software development seems to be more promising in collecting enormous wild, varied data, and automate the farming process.

 

The blockchain is able to record all the data starting from procuring the seeds to the sale at the retailers’ shop with POS system.

 

With the data available, we would be able to make an effective product supply, manage the quality, track the products, manage the stock, make a fair pricing, and thrive well in the market.

 

Indeed, the implementation of blockchain in agriculture would create an appreciable strategy in farming and alleviate the standards of farmers.

 

With blockchain, the technology-driven agriculture days are not so far.

About Author

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Asha Devi

Asha is a certified Content Marketing Professional and a passionate writer. She loves to create content that cuts through the noise, connect the business with audience, increase brand awareness, site traffic and sales.

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