Buying bananas with Bitcoin!
Creating Traceability and transparency in agriculture through blockchain.
For SecureFood, Singapore
Technology in food systems has evolved beyond farm to shelf ordering applications. Deep Tech is rapidly changing the state of agriculture and the lives of farmers. Transforming traditional methods of cultivation through data analytics and IoT, technology is also bringing transparency and traceability to the entire sector. Key to this transformation is the rise of blockchain technology.
The Distributed ledger
Blockchain is a distributed database system in the form of encrypted blocks. It acts as public record of all transactions on the platform. This record is visible to all parties and cannot be revoked. Each transaction that occurs on the platform is indexed and recorded through distributed database globally. This decentralized function makes it difficult to defraud the system.
The block chain has been typically used for financial transactions in multiple fields as well as in supply chain sectors. The system is slowly being implemented in agriculture, primarily at the supply chain level. The use cases are slowly expanding to financial information, operational data as well as technology transfer. Blockchain is poised to usher precision agriculture comprising of data driven operational and business models.
The need for blockchain in India
Indian agriculture is besotted by issues of product safety, property ownership issues, identity challenges and majorly agro-credit issues.
The increasing threat to food security and regulatory demands from importing nations have created a need for an efficient traceability system. This alone could address the multiple physical, economic, and environmental challenges. The database not only captures numerous parameters of the food at every stage, it also captures the need of the people in the system. A blockchain powered traceability systems would help is ensuring identity and property rights while improving the flow of information through the system. This helps us create smart fintech products targeted to the appropriate group as well as enable auxiliary services like healthcare, education etc.
Apart from helping the stakeholder in the chain demonstrate to customers the superior quality of their methods and products, Blockchain also enables smart contracts and transactions. although buying bananas with bitcoin is not farfetched, smart contracts between wholesalers, FPOS and producers are already in test phase. The smart contracts ensure adherence to certifications, regulations, trade agreements and builds trust into the system.
In summary, Blockchain shall help Indian Food systems in two main ways. Traceability shall allow detailed trusted information to pass through the platform and thereby ensuring a positive impact on food safety, quality, and sustainability. Secondly, smart contracts and digital identity shall reduce transitions costs, reduce risks, and improve the business models within the sector.
Teething troubles
Blockchain technology is still ironing out chinks in its armour. Although major players like IBM have platforms for implementing blockchain and Hyperledger, there are concerns about the data ownership, retrieval, scalability, and energy requirements.
Global companies like Agri ledger are utilising blockchain to create digital identity and allow about harvesting and competition, trace their goods, and record their sales. Within India, companies like Xelpmoc technologies are working to customized blockchain solutions for agriculture with farmer communities and government agencies.
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