Blockchain's ability to store and manage data creates traceability to facilitate the development and exploitation of innovations for smart agriculture and index-based agricultural insurance. It is a big step for the future in the modern agricultural world. But how does this technology work and how does it make food safer?
What is Blockchain Technology?
You've probably heard a lot about blockchain technology with the growing popularity of Bitcoin and other cryptocurrencies, but it might be surprising to hear about it in agriculture.
We traditionally use ICT (information and communication technology) to monitor data, keep information flowing, and databases.
Blockchain technology is a new way to power these databases. It grants rights to all network participants rather than a single server and administrator. Multiple parties can then access and verify new additions to the database. In this way, more security is provided and leakages are reduced.
How Can Blockchain Technologies Be Used?
With blockchain technologies, you can track all kinds of information about plants, including the quality of the seed, how the crops are growing, and even create a record of a plant's post-harvest journey. They can also make it easier to trace any contamination or other issues back to their source in the event of a recall. The most important priority in these technologies is sustainability and food safety.
With this level of transparency, consumers can make informed decisions in their purchases. Often, they use this information to reward farmers who use positive practices.
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Concerns With Blockchain Technology
There are concerns that blockchain technologies could be misused or undermine food security. For example, privately owned blockchains are less secure. These blockchains rely on controls set by private entities. So it's easy to see how the wrong people can manipulate them to their advantage. Small farmers who do not have the necessary size, technological know-how and scale to implement blockchain technologies may lag behind this technology.
Many issues need to be addressed before blockchain technology can truly integrate into the agricultural world.
First, the implementation of blockchains should be centralized to include small farmers and rural people. Otherwise, food security will continue to be an issue. Practice should allow for sustainable and equitable food systems so that consumers can make informed decisions.
Education should be provided for those who are not digitally literate to get started with blockchain technology. This system is part of centralization. Aging infrastructure and limited digital literacy among the world's poor can limit who can participate in the system.
Finally, blockchain technology must be translated into broader food safety strategies to ensure that it conforms to the social and environmental values critical to tackling these food insecurity issues among disparate groups.
The fair application of these innovations to all stakeholders is the most important issue.