The greatest sector of the global economy is agriculture, which generates more than US$1 trillion in yearly revenue in the United States alone (1% of the GDP of the nation).
Additionally, this industry is among the least efficient. Agribusiness issues include a sizable amount of tainted and fake goods, an antiquated accounting system, excessively extensive and ineffective supply chains, an overabundance of bureaucracy, and a lack of transparency. And it appears that blockchain technology can at least partially address these issues. In this article, we have mentioned the top 10 use cases of blockchain technology in agriculture.
You may use specialized sensors to track the storage and delivery of agricultural products. These sensors gather the required data and log it in real-time in a decentralized distribution book based on the blockchain. Therefore, the product's stakeholders (farmers, distributors, and consumers) will be able to identify the stage of spoilage and avoid it in the future.
The World Economic Forum estimates that using new technology to lower administrative hurdles in logistics and supply chains will boost global commerce by 15% and GDP by 5%. Experts concur that the blockchain is the only technology capable of removing these restrictions.
The blockchain is the sole candidate for such a working environment. Only this database design can offer openness and security of information storage at the same time. Openness is required because the new FMS must provide unrestricted access to data for all parties, and security is necessary because you must be certain that the data is accurate and safeguarded against fabrication.
Blockchain is a decentralized database that can securely and dependably store IoT data. Specialized platforms that have already been built and refined via work with the "Internet of Things" have shown themselves in other industries, confirming the scalability, safety, and dependability of the technology.
Several aspects of modern technology can contribute to more transparent pricing. Blockchain eliminates middlemen, allowing farmers to negotiate better terms for contracts with merchants directly. The market becomes more open thanks to blockchain, which may be used to put societal pressure on businesses that generate excessive profits. Eco-organizations' use of this tactic has demonstrated its efficacy. To defend their rights, farmers might establish worldwide trade unions using blockchain-based platforms.
Although it is improbable, there is some optimism that at least some aspects of agricultural subsidies may improve thanks to the blockchain. The people may demand the development of a blockchain platform so that aid may be automatically given to those who need it most.
The new technology will expand the lending sector, enabling, for instance, African farmers to obtain loans with reasonable conditions from European institutions. Additionally, you may develop models for crowdfunding that let regular people finance firms in foreign nations thanks to the blockchain. Currently, it is dangerous, challenging, and included too complicated administrative processes. These issues with crowdfunding will be resolved via tokenization.
Similar to loans, the blockchain can localize the insurance market so that, for instance, farmers in Latin America can obtain insurance from European firms on more favorable terms.
A synergistic impact might result from the blockchain's incorporation into many parts of farmers' activity, considerably simplifying, facilitating, and even enhancing their lives. Farmers will be happy and experience less stress as a result.
Thanks to the blockchain, those who are interested in the practice of raising crops, animals, or fish will be able to trace the "history" of some foods, like maize, down to their seed sources. Or the "history" of salmon from the farm where it was raised to the freezer. In this situation, you can trace everything, even DNA and the chemical makeup of fertilizers.
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