- Category: Blockchain Technology
Blockchain is nothing but a distributed ledger technology allowing members to record transactions in a decentralized data log in computer networks. The transactions are to be approved through concessions, and every operation gets secured through Cryptography. The applications are mostly applicable in agriculture, which is already plagued with numerous challenges. With rising consumer consciousness towards food safety, Blockchain adaptation in agriculture is tailored to solve numerous problems.
In this Article
What is Blockchain Adaptation in Agriculture?
The agricultural and food industry in India plans to adopt this technological progression to improve and improvise the existing approaches in agriculture. At the same time, they are hoping to adopt the latest inroads to create the current positive dimensions in the agricultural sector.
Blockchain Technology in Agriculture Can Bring Halcyon Days for the Farmers
Agriculture and food chains are linked to each other. Like every product, agricultural products are always distributed through supply chains. The chain is rather a humongous one and it involves farmers along with shipping companies, distributors, grocery shops with the customer being the final client. In such a system of multiple transactions and trade, technology like Blockchain is a must to bring halcyon days.
Elimination of Complicating Intermediaries
Right from time immemorial, it has been seen that farmers in the agricultural set in this country have suffered due to less marginal prices of the produce. With the adaptation of this latest framework, the situation is sure to change. Blockchain technology in agriculture will eliminate a large number of complicating intermediaries. What it does is, it decreases transaction costs and improves the margin of profit. In the long run, it will prove to be advantageous for the farmers.
A Tool of Transparency
Undoubtedly, the process is seamless and transparent, as every transaction is shared in the ledger protected by Cryptography. The approach ensures that every transaction is visible to all the members at the same time. It is the perfect tool to eliminate and detect scams, frauds, etc. Not to forget, the supply chain in India has been plagued by deformations since ages, and now is the time to think with a positive outlook.
The Authenticity of Agricultural Units
It has often been witnessed that local level retailers often sell substandard products to farmers to increase their profit margin. At times, even the retailers are dubious about the authenticity of the product supplied to them. These are issues that are not only alarming but causing a humongous impact of negativity towards the agricultural setup.
These problems can be solved through Blockchain technology in agriculture. With this technology, it is possible to keep a track on each product, as it passes from the manufacturer to the end-buyer. The barcode imprinted on each product will help the farmers to scan each of the units and gain a clear understanding of them
Registration of Land Title
Blockchain is one of the technological progressions that is ideal for land registration. Registration of land title is a highly cumbersome process often-falling prey to fraudulent activities. With Blockchain technology in farming, the scope for any kind of deceitful act in registration is zero.
Dispersing Power of MNC’s
The current agricultural industry is dominated by numerous multinational corporations. They are the largest buyers setting the price. They are the ones who advise farmers what to grow in a particular season. However, the community sponsored farming and the miniature enterprises can again make their presence felt in the agricultural set up using this mechanism.
Using this particular know-how of Blockchain technology in agriculture eliminates a large number of complicating intermediaries. What it does is, it decreases transaction costs and improves the margin of profit. In the long run, it will prove to be advantageous for the farmers. The farmer delivers a product to the users in a direct manner. Thereby the farmer receives the requisite funding at the very onset of the commencement of the farming session.
Perfect for Solving Greater Challenges
It is perfect for solving some distribution, governance and shareholding challenges, which might spring up in due course of time. The process of smart contact and shareholding can help community-sponsored agriculture in scaling with greater efficiency. In simple words, there becomes direct connectivity between farmers and consumers.
The farming sector relies heavily on government subsidies with wholesome amounts earmarked against the same every year. The transparency in the system will only help the agro-industry in the long run. Effective management of data ensures that the allocated fund reaches the farmers without any hindrance. The farmers, in turn, have sufficient funds to purchase seeds and other requirements well in advancement.
Smart Farming for a Better Tomorrow
Smart farming is the future of farming, especially for an agricultural country like India. The impacts of technology like the Internet of Things (IoT) have been implementing and they have been widely accepted by all and sundry. IoT, for example, will help and allow the farmers to predict the weather conditions, precision farming, and so on. IDC estimates that there will be 41.6 billion connected IoT devices by 2025. Most of these devices need to interact with each other creating need for automated authentication and security mechanisms. Smart Contacts and immutable nature of Blockchain acts a Single source of truth establishing trust & data decentralization.
The farmers can access better finances. As we move towards a new revolution in Indian farming, efforts are to be adopted to educate the farmers. If we can make our farmers understand this basic knowhow, we are sure to make rapid strides in the world market in the days to come.
Thought Process of Indian Food Companies
According to recent reports and data analysis, the association of Indian food companies are gearing up with quite a few tech giants to adopt Blockchain. They have understood that it will be helping a business to comply with regulatory standards. A thorough quality check and proper maintenance of sanitary standards are meted out.
Prime Minister Modi Pitches for Blockchain in the Agricultural Sector
Prime Minister of India MR. NARENDRA MODI has been encouraging youths to utilize and promote Artificial Intelligence (AI) and Blockchain technologies. He believes that this particular innovative idea will bring about positivity in the agricultural sector. With real-time monitoring of the supply chain, the technology can bring about transparency in agricultural trade. Right from the process of production to making it available to farmers’ things will become seamless.
The Real Challenge
The real challenge in adopting this process depends on the cost factor. Are consumers ready to pay the price just for the sake of safety? But it should be noted that the advantage would be consumed by the producers’ aggregators. So, what about the farmers? To be honest, they will be deprived, as it has been the scenario, so the best possible option would be to welcome these technologies and reap the benefits in the days to come. The challenges are short-lived, but the advantages are for a lifetime.
Blockchain technology in farming has already proven to be a grand success in other countries and India has also adopted a few norms. So far, it has been successful in terms of security and reliability. The individuals who used to end up with fewer margins will gain more in the days to come. There is nothing to worry about fake scams and things are more reliable and seamless. Indian agriculture is sure to reach impending heights in the days to come.