Blockchain Technology in Agriculture in 2024

Introduction

What is Blockchain?

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.

Blockchain technology in Agriculture

In an era where the origin of our daily bread is of paramount concern, questions surrounding
the roots of our food, the identifies of its producers, and its environmental ramifications loom
large. The imperative for transparency, traversing the entire trajectory from producer to
consumer, has shared aspiration. The intricate system of agricultural supply chain introduces
challenges such as food fraud, environmental degradation, and compromised product quality.
However, poised as transformative force, blockchain technology in Agriculture promises to revolutionize
this landscape, delivering value to numerous industries through enhanced transparency,
sustainability, traceability, smart contracts, and data privacy (Mukherjee et al., 2021). Unlike
traditional centralized systems, blockchain disseminates information to all stakeholders,
fostering a collaborative network.

The Need for Blockchain Technology in Agriculture

As societal expectations evolve, the demand for a sustainable future and supply chain
transparency in order to eradicate what is illegal and unethical intensifies. Agriculture’s
elongates supply chain has given rise to inaccuracies in data, food fraud, diminishes value
addition, and adverse environmental impacts, eroding consumer trust over the period of time.
The advent of blockchain technology addresses these challenges by engendering
transparency. Through the preservation of metadata this technology facilitates comprehensive
product information tracking – encompassing origin, quality, growth conditions, and
freshness. This robust information empowers a relationship of trust between suppliers and
consumers, thereby influencing consumption behaviours(Hang Xiong et al.,2020).
Furthermore, the technology acknowledges and rewards producers adhering to best farming
practices. Embracing smart contracts(Zeshan Naz., 2023), Blockchain technology streamlines
B2B transactions, eliminating intermediaries and there associates risks. This approach
ensures secure, long-term data storage, shielding the supply chain from potential
malfunctions and fraud.
The architecture of blockchain’s technology has been meticulously crafted to serve as an
encompassing solution, offering valuable assistance to every participant within the web of the
supply chain. This inclusive approach involves producers, manufacturers, distributors, and
consumers alike, providing them with access to crucial product information. By facilitating
the storage and retrieval of transactional data, blockchain empowers there stakeholders with a
mechanism to trace the journey of products across the supply chain. This traceability not only
enhances transparency but also acts as a formidable tool in the identification and subsequent
eradication of fraudulent activities that can plague the agricultural supply chain. Through this
comprehensive framework, blockchain stands as sentinel, safeguarding the integrity of the
industry and reinforcing trust among its various actors. Furthermore, it is imperative to tackle
the issue of the digital divide and ensure inclusivity for small-scale farmers in developing
regions in order to fully unlock the technology’s capabilities. This aspect plays role in
realizing the complete potential of blockchain in agricultural sector.

Utilizing Blockchain Technology in Agriculture

Incorporating technological advancements like product tracking and data analytics bolsters
process monitoring across the product lifecycle. A significant portion of consumers now
gravitate towards brands offering comprehensive process insights. Blockchain technology in Agriculture
operates through three main phases: verification, tracing, and sharing. The process
commences with the verification of production through a robust automotive database.
Subsequently, products are diligently tracked throughout their life cycles. Finally, pertinent
information is disseminates to consumers, tailored to align with their systems.

IoT, smart sensors, process automation, GPS, barcodes, QR codes, and RFID (Radio
Frequency Identification) are pivotal components of the blockchain ecosystem. For instance,
in the case of Austral fisheries’ “Glacier 51” toothfish product, RIFD chips with unique serial
numbers are embedded into fish flesh, enabling traceability throughout the supply chain. To
bridge the information gap for consumers, a unique QR code linked to the fish’s history is
included in the packaging. These technologies not only enhance product value but also
establish customer trust by ensuring ethical compliance.

Limitations

An intrinsic hurdle in the integration of blockchain technology within the agricultural sector lies in its responsiveness to the scale of farming operations. For instance, the smaller farmers encounter several challenges like:

• In the accumulation and fusion of data due to the absence of requisite infrastructure.
• Farmers lack familiarity with the technology, presenting a digital literacy barrier.
• Insufficient infrastructure and economic constraints impede technology integration for certain farmers.
• The process of data integration, especially within intricate system like agricultural supply chain introduce uncertainties from both human-generated and sensor-derives data. Furthermore, data breaches could lead to misinterpretation of information (Vasil., 2020).
  
  Addressing these challenges necessitates:
• Educating farmers,
• Offering economic support,
• Introducing cost-effective alternatives,
• In addition to these points, there exists a highly accessible application made for the farmers, which is available at remarkably minimal cost. Blockchain technology in agriculture serves to ensure equitable transparency for all the stakeholders in the agriculture supply chain. The quality of this product lies in its user-friendliness, making it effortlessly graspable for every participant in the chain. A minimal training is all that’s required to adapt the technology. As a result, this will revolutionize the entire agro-web landscape, without any complexities or impediments.

Conclusion

Agricultural supply chains have struggled to provide the desired transparency, often leading
to misinformation. As these chains grow in complexity, blockchain and allied technologies
offer solutions to monitor produce activity from its inception to distribution. The holistic
approach empowers consumers with transparency, nurturing trust between companies and
their customers. Leading corporations are already embracing blockchain, signalling the
emergence of a novel market structure. By leveraging blockchain’s potential, agriculture can
realize a future where transparency, sustainability, and consumer trust thrive.