Agriculture alone accounts for almost 6.4 percent of all global economic activity. Agriculture accounts for around 40 percent of the world's workforce, with an annual production of more than 5,000,000 million. When food enters the market, where a lot of intermediaries are involved, it becomes part of a broad food supply chain. You may be interested in understanding where your food was made and in what conditions.
Only when it's served on your plate and you eat it can you get to know the consistency of your meal. Nevertheless, it could be possible to check the quality of food at an earlier stage through the use of Blockchain in the execution of contracts and the direct monitoring of food supply data.
One of the most exciting use cases that makes the entire supply chain process more transparent and efficient is blockchain agriculture.
The Blockchain stake in agriculture and food supply is expected to cross the USD 429.7 million mark by 2023, ReportLinker revealed. 'Blockchain for Agrifood' is a project funded by the Ministry of Agriculture, Ecology and Food Protection of the Netherlands to investigate Blockchain's effect on agrifood. Several other studies have also indicated that monitoring food through the entire supply chain with Blockchain technology is a matter of a few seconds. Blockchain technology changes the agriculture industry in a number of ways, and with Blockchain, it is easier to control food quality.
The nature of the supply chain and agriculture business is altered by Key Ways Blockchain.
Tracking procurement:- The conventional supply chain is a lengthy process involving multiple agents and time-consuming processes that ultimately add high costs to the system. But, Blockchain can simplify the whole operation through a single distributed ledger. In the conventional method, the Blockchain network allows for direct communication between the buyer of goods and the seller, helping to minimize the time spent on distribution and payments. Through this, by saving the extra agent fees and receiving a more significant amount of revenue from farmers, both companies and farmers can take advantage of the higher share of profit.
Crop and food development: Blockchain comes with intelligent features such as smart farming that enables IoT sensors that can provide important information such as soil temperature, water level, fertilizer data. On the basis of such data, Blockchain will trigger smart contracts and perform particular actions. This will help improve productivity in agriculture and manufacturing.
Weather Disaster Control: Farmers have to contend with unpredictable weather conditions, and weather monitoring and forecasting can be a big factor that can ensure better crop survival. With Blockchain, it is possible to forecast weather activity, making it easier and easier to request insurance and collect farmers' claims through smart contracts.
Agricultural Finance Management: Blockchain helps make the agricultural finance process more transparent and fair. Because of a lack of consistency in deals and complex credit history, it is challenging for smallholders and financial inclusion. Blockchain improved transparency and allowed shared power usability.
With Blockchain, you can think about trust, whether it relates to food provenance or trade-in production. The underlying promise that Blockchain facilitates is the capacity to trust without the intervention of mediators and many other connecting agents. Several Blockchain professionals on the market will help link farms and buyers directly and decrease the presence of multiple intermediary agents. In view of the benefits of implementing Blockchain technology not only in agriculture and the food supply chain but also in other industries, the Blockchain Council is internationally spreading Blockchain technology and is conducting Blockchain research and development in various fields.