Agritech - Blockchain

Blockchain is a decentralized and distributed ledger technology that stores immutable records that securely record transactions across multiple systems. Blockchain addresses the challenge of transparency and traceability in the agriculture sector. In the agriculture sector, blockchain enhances supply chain transparency, prevents fraud, and improves food safety.

Applications of Blockchain in Agritech

• Tracing Agricultural Products: Blockchain allows traceability of a product's entire life cycle from the place where it was grown to the store where it was sold. It helps ensure the product's authenticity and build consumer trust.
• Food Safety and Quality: Blockchain helps in tracking every step of food chain supply. It helps in maintaining food quality and safety. In case of food contamination, it helps in quickly tracing the source and halting the contaminated product's distribution.
• Automated Transactions: Blockchain makes use of smart contracts for automating payments, deliveries, and other transactions in agriculture. For example: If any product is delivered and verified, then a smart contract can automate the payment.
• Minimizing Fraud: Blockchain stores immutable records hence it's easy to verify the authenticity of the product which helps in minimizing frauds like false branding of products.
• Farmers-Buyers Connectivity: Blockchain helps farmers sell their produce directly to customers, eliminating mediators. It helps farmers in getting better prices for their products and also benefits consumers as they buy directly from the source.
• Verifying Sustainable Farming: Blockchain can verify if farmers follow sustainable practices by providing a transparent record of their activities. It makes it easier to obtain certifications and ensures farmers comply with standards.

Blockchain for Regulatory Compliance and Certifications

Blockchain can verify whether organic and sustainable farming practices are being followed by producers or not by providing an immutable record of every process involved in farming. Smart contracts can automate the compliance process by embedding regulatory standards directly into blockchain-based transactions. Blockchain can be integrated with global certification bodies to ensure compliance with international agricultural standards, such as those for organic farming or fair trade certification.

Challenges of Blockchain in Agritech

There are various benefits of integrating blockchain with agriculture, but there are some challenges, which are mentioned below:

• Technological Barrier: People in rural areas may lack the required technology, like good internet connectivity and devices for implementing blockchain technology.
• Regulatory Challenges: Many countries lack a regulatory framework for using blockchain in agriculture.
• High Cost of Implementation: Implementation costs can be high to implement blockchain for small-scale farmers.