There are many use cases of blockchain that can help advance the agriculture industry.
With billions of dollars at stake, are there any companies ready to push towards innovation?
Some projects have been working for years on the implementation of an idea, and based on crowdfunding, but still have not launched their product.
There is a lot of talk about the adoption of blockchain products in various industries; the agricultural sector and markets are no exception to this rule.
There are dozens of blockchain-based startups and initiatives that aim to advance agriculture. Among the most recent developments in this area is Singapore’s announcement of a contribution of $ 9 million to boost the use of blockchain in several sectors of the city’s economy.
As part of a particular partnership, Singapore’s blockchain innovation program will collaborate with agricultural startup DiMuto. The two parties aim to develop a project for traceability of agricultural products based on a blockchain system.
Blockchain is believed to help the agricultural sector in a number of ways including improving supply chain management, product authentication, inventory management, energy consumption, sustainability initiatives, and more. The question, however, is whether any of these ideas have been put into practice and how agriculture-focused blockchain products actually fare today.
Digitize data to prove the viability of agricultural products
To answer these questions, BeInCrypto called on Paul Ryan, executive director and co-founder of Aglive. It is a startup that deploys blockchain and Internet of Things (IoT) data to track products from creation to plate by digitizing the food supply chain. This Australian company has an active product and is already working with farmers.
According to Ryan, the market for agrotechnology is there, and it may enable “the ability to fully track and provide evidence for all data points in the supply chain visible to all, which has resulted in consumers the opportunity to get exactly what they bought ”. He added :
Food fraud is a major problem, costing up to $ 40 billion a year. The blockchain allows us to guarantee that our products are legitimate and safe. Families deserve to know that everything they buy is exactly what it says it says.
The agricultural industry could benefit greatly from the gradual introduction of blockchain technology. That said, one of the main challenges is that agriculture is an industry that often lags behind in terms of technological innovation, Ryan said. Many farmers continue to use paper records, which makes managing farm data difficult and time consuming.
In addition to tracking products from farm to fork, allowing for greater analysis, information sharing and improved procedures, blockchain can be used to ensure financial stability and subsidize those working in the field of agriculture.
According to Ryan, some farmers want to double the value of their income. They have no hope, however, unless they can raise capital for the farming community to protect their livestock from drought, improve their methods and equipment. To ensure the cash flow, you need banks that have confidence in agricultural practices. He also clarified:
Traceability makes it possible to titrate loans. If farmers have a steady cash flow from blockchain-based loans, they can focus on what they do best. This is a unique opportunity to connect the dots and strengthen the confidence of insurers and financiers. Data comes first: once you get it and it’s accessible via blockchain, you can turn the farming practice into a value-added service, because all the information is there and verified. The blockchain will boost investor confidence.