Blockchain In Agriculture
Agriculture contributes over $992 billion to the GDP of the United States of America. Agriculture is one of the most essential industries in the world. Over 21.4 million jobs dependent on the success of agriculture, the stakes are high to ensure that farming remains competitive for all. But how can technology help this competitive industry grow?
The blockchain represents to be a technology that provides more consistency in wide areas of the agricultural industry. Whether it is applied to managing warehouses, silos, and supply chains more intelligently, or transmitting real-time data about crops and livestock, blockchain plays an integral part. There are a few aspects of an agricultural operation that blockchain would help in growing.
Why Is Blockchain Unique
Blockchain is a distributed ledger technology, which records transactions in a decentralized data log maintained on a network of computers. Transactions are approved through consensus, and everything is secured through cryptography. Once an entry is made, it is recorded permanently and cannot be edited or erased by any member.
What makes blockchain so unique is that data stored on blockchain networks is transparent and incorruptible. Data is embedded in the network as a whole. The data is public, and once stored, it cannot be corrupted by altering any information on the blockchain.
Use Cases Of Blockchain In Agriculture
Food Safety
The blockchain provides an efficient and reliable solution to increase product traceability and supply chain transparency. By recording information about products at every stage of the agricultural supply chain, the technology removes redundant processes, ensures quality control, and monitors storage conditions. Agricultural companies already monitor crops with smart IoT devices. Blockchain technology will reinforce sensing technology by recording and verifying all data.
Agricultural Insurance
Self-executing smart insurance contracts built on blockchain technology provide better insurance programs for private farmers, agricultural holdings, and everyone in the supply chain. Smart contracts eliminate the manual process from assessing insurance claims, making the process simpler, faster, and more transparent. Smart contracts will also minimize the risks of false claims and corruption among insurance providers, as one cannot alter insurance policies once they’re agreed upon.
Agricultural Finances
A distributed ledger brings transparency to agricultural financial transactions, credit history, and financial agreements for those investing in farming. Shared access and irreversible agreements allow smaller farmers to pay for raw materials and machinery partially or after delivery while guaranteeing fair market pricing.
Environmental Sustainability
Climate change and unpredictable weather influence agriculture in a great manner. In addition to taking responsibility for our planet’s future, agribusinesses are following various requirements of environmental initiatives like climate or green bonds. Companies are facing more and more obligations for monitoring, verifying, and reporting according to sustainability requirements to prove their climate-friendly farming practices to investors to keep their businesses running.
Agriculture is one of the most important industries in the world. With changing times, the vital industry must evolve. Blockchain and distributed ledger are the keys to the survival of this agriculture.
