Unlocking Agriculture’s Full Potential with Blockchain and Innovative Tech

Blockchain is reshaping the agricultural industry by increasing transparency, traceability, and efficiency in supply chain management and compliance.

Blockchain has been recognized for its potential to transform finance and other industries that rely on data, but what happens when innovation meets the world’s oldest industry — agriculture? It turns out that blockchain has a lot to offer to the food and agriculture sectors, especially when merged with other innovative technologies such as artificial intelligence (AI), satellites and the Internet of Things (IoT).

The agricultural sector can join the tech revolution to upgrade every aspect that has to do with transactions and data. For example, blockchain could streamline processes related to the supply chain by increasing traceability and bringing automation to the table.

A report from InsightAce Analytics found that blockchain in the agriculture and food supply chain is a market valued at over $280 million as of 2022, and is expected to grow to over $7 billion by 2031, demonstrating a compound annual growth rate (CAGR) of 43.76% during that period.

How can blockchain help agriculture businesses?
Thanks to its unique architecture that involves decentralization, blockchain ensures the highest possible degree of transparency and traceability, which are key elements in the agricultural sector. Decentralized networks enable participants, including farmers, producers, retailers, and exporters, to monitor and address major challenges showing up in the supply chain. Eventually, blockchain records can be used for analysis purposes to improve various aspects of the supply chain.

The adoption of blockchain in agriculture can also help regulatory compliance and reporting. By ensuring the provision of accurate, up-to-date, tamper-proof data, stakeholders can make better-informed decisions and implement proper corporate governance. Decentralized networks also simplify the distribution of certification data among relevant parties.

Besides transparency, blockchain can facilitate other advancements in the agricultural sector. For instance, it can enable better management of land rights, more efficient food safety tracking, and enhanced traceability of inputs like seeds and fertilizers.

Farmers can leverage permissioned and permissionless solutions
Tech giants have realized the potential of decentralized ledger technology for agriculture. For example, IBM provides businesses with a permissioned blockchain platform called IBM Food Trust, which offers multiple features, including proof of origin, traceability, fraud monitoring, and documentation, among others.

Agricultural companies can also leverage blockchain solutions that rely on public networks, which ensure a higher degree of decentralization and security. One example is Dimitra, an AgTech company that aims to help farmers reduce the amount of labor required to complete manual tasks by integrating its technology stack, which combines blockchain, AI, IoT, drones, and satellites.