How Could Blockchain Improvise Agricultural Sector? Take the Fringe Benefits

Published on

19th August 2021


Blockchain Industry Solutions

Bitcoin is a type of cryptocurrency that has become a buzzword in the crypto space. It raises the popularity of breakthrough blockchain technology and cryptocurrency. Many of us think blockchain is only for the financial sector. That’s not true. Blockchain is a game-changer across different industries, including education, digital identity, gaming, supply chain, real estate, healthcare, etc.

Blockchain in Agriculture

However, one giant industry that needs blockchain solutions is Agriculture, since many intricacies in the agricultural process suppress the efficiencies and lead to unsafe food products at the terminal. Globally, Agriculture plays a crucial role in the economy of developing countries. The growing population demands innovative agricultural solutions to drive high efficiency. Improving the farm business with evolving blockchain solutions could impact all of us and help us eat safe foods daily.

Let’s unfold the real potential of blockchain in agriculture here.

Real Time Scenario Around Agriculture

The world is now evolving with new changes. Agriculture has always played a vital role in the promotion of life and well-being across the globe. It is the largest source of livelihood in many countries, with close to 60 percent of rural households financially dependent on it. Technology advancements bring many new changes in agriculture, enhance the growth of agriculture exports, and drive efficient outcomes.

Now, you are able to get the craved food products from any part of the country at your doorstep. It is just amazing!

All these things are good. But the question goes to safety. How could we believe this is safe? A lack of transparency paves the way for security concerns. Along with this, a few factors have become a dispute for the agricultural process and enabled low efficiency.

Gists on the bottlenecks in Agriculture
  • A Cluster Manual Process
  • Lack of Transparency
  • A Lot of Intermediaries
  • Centralized Management
  • Fragile Data Management
  • Lack of Security
To comprehend better, consider a scenario around Wheat cultivation.

If a farmer cultivates a wheat crop, he needs to invest his time in soil monitoring, climate analyzing, pesticides going to use, time prediction, market demands, and price value.

All those processes comprise a lot of analytical calculations and data management. A farmer needs to maintain a proper data list to ensure the right cultivation. It was not pragmatic since they depend on manual processes mostly. It leads to data misinterpretations, which could reduce the efficiency of agricultural operations.

Also, a lot of intermediaries participate in transferring the cultivated products to the customer end. It increases the possibility for product counterfeits, fake products, and a lot of fraudulent activities. The prices will be deducted at many places, which majorly affects the farmers who cannot receive the deserved payments.

There was no transparency in the whole process. It may confuse the customers whether they have the right products from the right manufacturing unit. They know a little about manufacturing details, logistics information, or product quality information. There will be high chances for fake products delivery, time delays, and other frauds.

Awfully, these challenges need the right solution!

Many experts look forward to finding advanced technology to grab smart solutions. Now, Blockchain technology has come into play.

Introduction to Blockchain

Blockchain is a decentralized technology that has the potential to hold time-stamped records of transactions. Data will not be stored in a single server, it will be spread across multiple nodes across different places. More participants can be added to the blockchain network without having any limitations to real-time access of data. It could prevent a single point of failure, data hijack, and ensure more security, transparency, and efficiency.

A Modernistic Approach to Agriculture

Blockchain has ideal characteristics that would address the challenges in the agriculture sector and help to grab high efficiency.

Dapps are novel! Dapps have blockchain at its backend to improvise the performance while cutting down the centralization.

Dapps have unique traits as it has a decentralized structure, which could help to bring a lot of new changes.

  • Decentralized user control
  • High-Level Security
  • End to End transparency
  • Global connectivity
  • Cryptocurrency rewards

When the Agriculture business adopts blockchain-based dapps, everything will change. There will be streamlined processes and no place for security and privacy concerns.

A lot of merits are awaiting for agricultural business!

How could Blockchain work in Agriculture?

Blockchain solutions could impact agriculture in different ways. Significantly, it has three use cases,

  1. Crop Production
  2. Warehousing and Distribution
  3. Agricultural Finance
Crop Production

Blockchain is a ledger technology that helps to drive high efficiency in agriculture. Smart contracts would be playing a crucial role in enabling efficient results. To collect the data from farms, IoT sensors will be used since the integration of blockchain with IoT is highly worthy.

Blockchain integrated with IoT can generate, store, and process data for efficient transactions.

Let’s dig into it.

A group of IoT sensors needs to be placed in agriculture farms. It collects the data regarding soil, temperature, climate, and other different parameters. They will be directly fed into the blockchain. Now, smart contracts would be triggered and verify those details with a range of standard parameters. If it is matched, they will start executions. For instance, temperature is opt for cultivation, it can generate notifications to process the executions. Otherwise, they will notify the farmer before it goes beyond hand.

Farmers can receive notifications regarding all essential parameters, which could increase the efficiency of crop production. Also, with the help of smart contracts, all the processes could become automated, streamlined, and secured.

We already know blockchain-powered smart contracts would be best for effective inventory management. All the transactions become automated and it could cut down the participation of intermediaries. It could reduce huge costs spent on intermediaries.

Blockchain brings the P2P Exports system to limelight, where the farmers directly connect and collaborate with the retail marketers across the globe.

Members including farmers, traders, suppliers, managers, and retailers are all on the same line in the blockchain network and they could have real time access to data.

Enhanced transparency could be set throughout the product journey, which could avoid all fraudulent activities and ensure safe delivery at the right time. On the customer end, they could be informed about product details from manufacturing to logistics to end delivery. They may get confidence that the product is original and safe. It benefits both farmers and consumers. Food product logistics could become simplified, streamlined, transparent, and secure with the help of blockchain.

Agriculture Finance

As Blockchain is a ledger, it could help to store all transactions in a secure, immutable and decentralized way. Hence, when agricultural business details are entered into blockchain, it is visible to all blockchain participants. This has made financial audits simple, secure, and efficient. It helps in claiming insurance for crop damage caused due to natural disasters.

No worry to involve complex processes for claiming finance when it is needed!

All the processes become automated, no need for intermediaries to authenticate, and farmers can avail their insurance claims instantly, easily, and effortlessly.

Summarizing the benefits of Blockchain for Agriculture,
  • Direct peer-to-peer connectivity
  • Transparent environment
  • A secure data storage
  • High efficacies
  • Reliable finance management

Altogether, we can say, blockchain technology could simplify the agricultural techniques, facilitate transparent supply chain systems, improvise financial audits, and help to grab the safe foods at the end.

Final Thoughts

Now, you are aware of the admiring blockchain solutions for agriculture. In the future, if the population increases, there would be a need for smart agriculture practices to feed the large population. Dapps could play a crucial role in influencing advanced agriculture operations.

While adopting Dapps for your agricultural business, you can avail streamlined, automated business operations, effective inventory management, transparent supply chain environment, secure food process, and best agricultural care by a single tap.

If you need to run a sustainable agricultural business, you need to adopt innovative changes. Blockchain is the future of decentralization, which enables the user-centric approach to hit the world. Adopting blockchain solutions in the agriculture business would help to achieve a spotlight in the future of agriculture and realize the heaps of advantages exceeding our thoughts!

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