Blockchain technology offers the agri- & horticultural sector various advantages and applications that can enhance transparency, traceability, and efficiency in the supply chain. However, is blockchain a necessary advancement or a trendy misconception?
The connection between blockchain, finance, and digital currencies (such as Bitcoin) is likely familiar. Blockchain serves as a digital ledger where transactions are recorded. These transactions are bundled into blocks that are linked together. With each new transaction, a new block is added to the chain. Unique to blockchain is that each block contains a "fingerprint" of the previous block, making data manipulation virtually impossible. This ensures security and transparency.
These characteristics make blockchain relevant to the green sector. The technology has the potential to transform agri- & horticulture by:
1. Product traceability: The origin of agricultural products (vegetables, fruits, flowers) can be recorded and monitored via blockchain. Consumers can verify the origin of their products, which is important for food safety and quality assurance.
2. Quality control and certification: Blockchain can record certification information and quality data of products, such as organic certificates, pesticide information, and harvest dates. This helps to ensure quality and compliance with regulations.
3. Efficiency in logistics: Blockchain can optimize logistical processes such as transportation and storage. Smart contracts on the blockchain can automatically execute agreements between different parties, increasing efficiency and reducing errors.
4. Reducing fraud risks: The decentralized and immutable nature of blockchain makes data manipulation by malicious actors virtually impossible. This way, blockchain can help reduce fraud in the agricultural sector, such as incorrect product labeling or counterfeiting of certificates.
5. Improved collaboration in the chain: Blockchain can promote collaboration between different players in the supply chain by facilitating data and information sharing. This can lead to better communication, coordination, and trust between growers, distributors, retailers, and consumers.
The added value of blockchain is evident, but the sector is already dynamic and innovative.
Developments and innovations follow each other in quick succession. Improvement, transparency, and risk reduction are important objectives, but do not mean that blockchain is indispensable. Be proud of the active sector and stimulate continuous progress and cooperation, also across sectors!
The future of blockchain in agriculture depends on various factors
Cost: Implementation and maintenance of blockchain technology can be expensive.
Scalability: The technology needs to scale to meet the demands of the entire agri- & horticultural sector.
Regulation: Clear regulations are needed to promote and streamline the application of blockchain.
Collaboration: Permission and cooperation from all players in the supply chain are crucial for successful implementation.
The potential benefits of blockchain for the agricultural sector are great. The coming years will show whether blockchain will bring about a lasting revolution or a hype.
What are your ideas about this: Is this a must have or need to have? If you feel the need to respond on this article, please email us at info@cubicgrow.eu