Blockchain keeps track of data with an immutable cryptographic signature that can't be changed, hacked, or faked. On the blockchain, this digital ledger is disseminated across the whole network of computer systems.
Smallholder farmers will profit from blockchain use cases in agriculture since they help to construct a transparent, fair, and tamper-proof value chain.
Where can you acquire unquestionably accurate real-time data?
Data-veracity: Data is frequently abundant, but quality data is scarce. Data is frequently too old or of poor quality to be useful. Smallholder farmers' livelihoods will be improved through smart agriculture. It necessitates a data-driven infrastructure that sources trustworthy and real-time data, such as crop types, growth, farming techniques, climate, and market pricing, while adhering to strict quality control guidelines.
How can you keep the cost of valuable data down?
Data that is dispersed; expenses that are dispersed: If done by a single entity, data gathering and storage is a costly undertaking. The majority of blockchains distribute the cost equitably across the stakeholders, lowering the cost significantly. From an environmental aspect, the costs of proof-of-work security are equally high.
How do you keep your data safe?
Data that is distributed can be readily tampered with if it is in the control of a single entity. In this circumstance, data can be withheld or charged for. With cyber-crime on the rise, a decentralised blockchain can provide a higher level of data security than a localised one. Furthermore, most blockchain security relies on widespread data exchange, ensuring that no one can interfere with it.
Knowing where your food comes from is important.
Food supply chains: We eat a lot of food that we don't know where it came from. Blockchain technology can be used to determine the origin of food goods, allowing for more reliable food supply chains. It promotes trust between producers.
How do we attain near-real-time data analysis and insights?
Analysis of large amounts of data: Data analysis and insights are only useful if the data is available in real time and the analysis is completed immediately. Blockchain facilitates the use of data-driven technology to promote better farming for a variety of use cases by providing a real-time store of accurate data. Every time, blockchain technology analyses data in real time.
How do we make sure that payments are made on time?
When used in conjunction with smart contacts, which are automatically activated by data changes appearing in the blockchain, blockchain can contribute to speedier execution and on-time payments amongst stakeholders.
How do we cut out the middlemen?
Redundancy of transaction intermediaries: In agriculture, the middlemen are the plague of enterprises, eating away at the producer's revenues. By authorising transparent peer-to-peer transactions, blockchain, on the other hand, eliminates intermediaries such as banks and middlemen in the agriculture industry. Data disclosure decreases information asymmetry and contributes to a more stable and liquid market.
Food supply assurance: Due to the agri-food system's complexity, tracking products in the vast farm-to-fork supply chain is a demanding task. It allows for better food quality and safety management, which benefits both consumers and government officials.
Agricultural Insurance: Smallholder farmers' agricultural and animal production is more vulnerable to weather extremes, which is exacerbated by climate change. Farmers who are exposed to weather-related risks benefit from agricultural insurance. By delivering quick aid after natural disasters, blockchain infrastructure can help speed up insurance payouts.
Unlike other technologies, which automate personnel on the periphery who perform menial activities, blockchains automate the core. Instead, of putting taxi drivers out of employment, blockchain puts Uber out of business and allows taxi drivers to work directly with customers.