Today, blockchain technology is getting implemented in every industry. It is revolutionizing finance, gaming, healthcare, logistics, and other industries. However, the agriculture industry is yet to be revolutionized by this promising technology. Blockchain in agriculture could bring drastic reforms and solve numerous problems faced in the agriculture industry. In this blog, we are going to discuss the impact of blockchain technology on the agriculture sector.
First, Let’s Understand: What is Blockchain?
Blockchain is a digital technology that manages digital ledgers of transactions and accounts, written and stored by all the users. Furthermore, this system works on a decentralized computer network with shared nodes that stores critical information. Since the data is stored on multiple servers, there are fewer chances of data tampering or unauthorized access.
This technology started its life with cryptocurrencies and has been introduced to various industries. Thus, it ensures complete security and fidelity of the stored data and generates authenticity without the need for a third-party governing body.
Let’s Talk Blockchain in Agriculture
Blockchain in agriculture can drastically improve the operating processes and ensure more profits. Furthermore, it could help the involved stakeholders with sustainable business practices and waste reduction. Thus, the global food chain requires a transparent network that could provide real traceability of the supply chain.
Blockchain for Agriculture supply chain could be a very effective approach to ensure both confidentiality and transparency. Blockchain in Agriculture means a supply chain where goods are safe and traceable. It would also reduce wastage and develop economic benefits for the involved stakeholders. Ultimately, smart agriculture will optimize the utilization of our natural resources and reduce the bad environmental impact of agricultural practices.
So How Exactly Can I Implement Blockchain in Agriculture?
The traditional digital infrastructure could be vulnerable to hacking and data tampering. A central authority managing the agricultural data could easily manipulate or influence the information. Furthermore, the agricultural data is stored on a centralized server. This makes it more prone to cyberattacks from hackers and cybercriminals. Thus, Blockchain in agriculture could provide a very reliable and secure digital infrastructure for data storage and transactions.
Examining the Implementations of Blockchain in Agriculture
Effective Management for Farm Inventory
It is becoming harder to manage a farm inventory with the fast pace of a supply chain. In fact, there are often mismanagement and waste due to inefficient inventory management in the agriculture sector.
Blockchain in the agriculture market could transform inventory management by bringing positive changes. It would help the farmers to carefully monitor every metric of the inventory to ensure a smooth supply chain. Thus, the farm owners could take legitimate measures to avoid wastage and maximize their profits.
Finance Management in Agriculture
Using blockchain in the agriculture market could bring complete transparency to financial transactions. It would help the stakeholders to micromanage their credit history and financial agreements electronically. Above all, the use of smart contracts will enable irreversible agreements that would help small farmers to pay for farm machinery and raw materials partially. Ultimately, the impact of blockchain in agriculture could significantly change the way we do finances.
Farmers Could Become Environmentally Sustainable
The agriculture industry is hugely dependent on the environment. Even the slightest change in the weather could determine the yield and final production. Blockchain in agriculture could help farm owners to take various environmental initiatives to make their farming sustainable for the environment. Thus, by abiding by climate-friendly farming practices, the farms could;
- Improve the quality of their yield and decrease wastage
- Ensure fair pricing with blockchain for agriculture supply chain
- Transparent financing and insurance facilities
- Improve traceability of the supply chain
Drastic Improvement in the Supply Chain
Blockchain for agriculture supply chain can be revolutionizing the farming industry. Blockchain will be using a ledger system to reduce the costs of the farming cycle and improve overall yields. It could bring complete automation and innovation to the supply chains. Finally, the operations will be more streamlined with analytics, transparency, security, and customer engagement.
Implementing Farm Management Software
The agriculture industry is still dependent on age-old technology and practices. It is high time to introduce farm management software in the agriculture industry. This software with blockchain would optimize almost everything on a farm. In fact, artificial intelligence would give predictive insights about the status of crops and improve overall yield. Ultimately, the impact of blockchain on agriculture becomes significant when you consider that it is safe from cyber hacks.
Working with IoT and Blockchain
The Internet of Things is already changing the face of farming in some countries. By using sensors and devices this technology could provide some very useful insights about the farm. It would further enhance the impact of blockchain in agriculture by leveraging cloud technologies and secure decentralized servers. Ultimately, these IoT devices with blockchain technology could be used for creating a smart network system to manage farming operations.
Actual Benefits of Blockchain in Agriculture
Based on the implementations of blockchain in agriculture, we should note the following benefits;
Using blockchain in agriculture provides peer-to-peer transactions with complete transparency. Thus, there won’t be any need for a third-party intermediary.
The absence of a central authority changes the trust model. As a result, the individuals have to place trust in the peer-to-peer framework and cryptography instead of authoritarian figures.
Blockchain in agriculture could improve the trust between the stakeholders. Thus, it would decrease the transaction costs in the market.
It would be much easier to find frauds and malfunctions in the blockchain. The smart contracts in blockchain in agriculture would make it possible to report issues in real-time.
Blockchain for agriculture supply chain would make it incredibly easier to track products in real-time.
Final Words
Blockchain in the agriculture market is bound to change the way we do farming. It would be a significant step in unifying the farms with the global economy in a centralized manner. Thus, many farming companies are already considering a Blockchain Development Company to develop their customized blockchain application. Collaborating with MobileCoderz could be a great decision to develop your own blockchain application for agriculture. Their team of blockchain developers has years of experience with decentralized tools and technologies.
Author Bio
Peter Handscomb is a senior blockchain developer at MobileCoderz (a Blockchain Development company), he has worked with multiple blockchain projects to develop end-to-end blockchain applications. Working on new challenging concepts is his main hobby. However, apart from work, he takes keen pleasure in travelling and playing football.
