Blockchain is transforming multiple industries with its manifold advantages. Its use cases in agriculture empower the industry with enhanced traceability, security, and transparency. Blockchain’s ability to store,
manage, and monitor the food chain facilitates automation in regular operations. In this article, we will look at
how blockchain technology is revamping the operational infrastructure of the agriculture industry.
Food Production and Crop Management
The agricultural industry is facing many challenges when it comes to profitability. For instance, the track of
growing population and food production accordingly has become a major challenge. Water fluctuation,
weather conditions, and crop management need to be monitored properly to avoid any issues. Coupled with
IoT, blockchain technology is redefining the processes of food production.
● IoT devices generate data from the crops and grounds and send it to the blockchain. The data is cleaned
and processed to gain useful insights using machine learning algorithms
● IoT-enabled smart farming uses sensors to check humidity, soil, light, moisture, temperature, etc. to get
real-time information
● Predictive models are applied to the data to identify crop quality, recommendations, yield, and demand
in a certain period of time
Weather Crisis Forecasts and Control
Farmers usually have to keep themselves updated with weather conditions when they are growing different types of crops in different weather. Without prediction and monitoring, growing crops is a very challenging task; however, the use of forecast reports can help them make better decisions and generate revenue. For instance, in the US, many crops cannot afford floods when it rains excessively during the spring season. At that time the concentration level of oxygen drops to zero. This makes it difficult for crops to function properly and grow. Blockchain enables the agriculture industry to stay updated with recent weather information that can save crops from getting damaged. Blockchain technology offers a high level of transparency across the value chain. Its ability to trace farmers and finance-related operations makes it easy for the industry to have a clear understanding of workflow.
Combined with other advanced technologies such as the Internet of Things (IoT), blockchain technology offers enhanced capabilities to the agriculture industry. Below are some ways that can help the agriculture industry control and monitor weather conditions.
● Weather stations send important information about the weather to the blockchain
● Forecast reports help farmers take preventive measures beforehand to mitigate the risks
● Offers a systematic way of crop insurance
Agriculture Finance Management
The agricultural industry employs conventional methods of managing all the finance-related work. Some major challenges under consideration are:
● There is no transparency in the overall finance chain
● Inefficient management of credit histories
● Lack of contract enforcement mechanisms
● Employee management and finance distribution
All these problems lead to a negative impact on the overall value chain of the agriculture industry that ultimately leads to ineffective yield, difficulty in keeping track of payments, and identification of revenue.
To streamline these processes, the agriculture industry must transform its finance processes and here blockchain can help the industry by:
● Allowing stakeholders to share information at each step of the value chain and food production
● Storing each transaction on the blockchain network to ensure transparency
● Keeping track of useful information to introduce fairness in the entire system
● Auditing the finance and value chain operations on regular basis using blockchain
● Automating the auditing process through smart contracts
Benefits of Blockchain in Agriculture
● Blockchain empowers the agriculture industry by offering improved quality control and food safety
processes. Combined with other high-end technologies, it offers a wide range of use cases that send
information from agriculture weather stations to blockchain networks in real-time
● It offers a high level of transparency and traceability in the food chain. From buying seeds to
monitoring yield, blockchain technology optimized the operational infrastructure
● Blockchain allows fairer, faster, and more secure payments for farmers
● It reduces food fraud when all processes are traceable, and labeled. All the intermediaries are excluded
from the blockchain network that ultimately helps consumers know the value you are providing
● Keeps track of all processes in one place, from income and expenses to yield and revenue
● Automates the regular processes using smart contracts that speed up the processes and introduce
efficiency
To conclude, blockchain development services bring potential use cases for the agriculture industry. So look for top blockchain companies that can help you turn your idea into reality with real-world applications and
customized solutions.
Read Also: What is Metaverse? Potential, Use Cases and Benefits
Written by: Eric Wilson | Edited by Rakhi Shah
Aboout the Author
Eric Wilson is a content writer with InvoBlox, a web3 consulting company. InvoBlox is one of the leading Blockchain Consulting Service Company, and one of its primary services is assisting companies worldwide in leveraging blockchain technology to reinvent themselves.