Blockchain technology participates in agricultural supply chain management to solve product pricing and safety issues

The potential use cases for blockchain technology are numerous, ranging from financial services to supply chain management. So, can blockchain impact industries that are in dire need of technological change? Take agriculture, for example. As by far the most complex industry in the world, will agriculture benefit from this transformative technology?

Potential use cases of blockchain technology in agriculture

Although most people ignore the existence of the agricultural sector, this industry does provide basic needs for our society. For young people, exploring the world of agriculture is not attractive, mainly because the agricultural process lacks technical content. In addition, agriculture is a relatively complex business field that needs more transparency and better industry standards.

Blockchain technology can change the status quo. Consumers around the world prefer "clean" food, but producers have no way to verify the authenticity of products. Replacing the current supply chain management system with a distributed ledger can bring greater transparency and encourage consumers to purchase food and products after careful consideration.

From a technical perspective, the use of blockchain in the agricultural sector can achieve intelligent supply chain management. However, the entire agricultural management process needs a technical overhaul. Currently, technical solutions in agriculture are either implemented by specific software or by service providers, but both solutions are expensive and sometimes fail to achieve the desired results.

Recently, Emma Weston, CEO of AgriDigital (an agricultural supply chain management platform based on blockchain and smart contracts), explained in detail how blockchain technology can solve the shortcomings in the agricultural field. The immutability of transactions and information in distributed ledgers is the key to solving all problems. Recording product information on the blockchain is the right choice, and farmers, retailers and consumers can all benefit from it.

Weston said:

Consumers are increasingly concerned about whether food is ‘clean’ and organic, but producers and processors often fail to track and verify the exact data involved in a product from farm to table. Blockchain can help. Currently, processors do not have a simple, accurate and effective way to track slave labor, raw material contamination and the origin of goods. At the same time, consumers are more willing to pay for organic food that lists these details. So far, we know that the root of the problem lies in certification and regulation, which are costly, difficult to implement and confusing for consumers.

The biggest problem facing the agricultural sector is arbitrary pricing and high transaction fees. Once suppliers cannot give a reasonable price, consumers will be unwilling to accept the final result. Supply chain management costs have greatly reduced farmers' interests and added a lot of chaos to agricultural development.

The future development trend of blockchain technology in the agricultural field remains a mystery. However, there are many specific use cases, including land registration, big data monitoring, and even the application of smart contracts. In the next ten years, the use cases of blockchain in the agricultural field are countless and the development prospects are very good.