As the excitement of Blockchain technology has swept across the finance industry and into other industries around the world, many believe that agriculture as well will be greatly impacted.
For those of you who are new to the term, Investopedia defines Blockchain as the following:
"A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as 'completed' blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically."
For the international agriculture industry our team envisions blockchain having two short term impacts:
With cryptocurrency and utilization of Blockchain technology, these large payments can circumvent the inefficiencies of financial institutions and be completed in moments. As soon as the buyer executes the payment, it can be received by producers. This innovation would be a blessing for many who are in the business of growing, packaging, and exporting agriculture products for international markets.
The second area of innovation useful to agriculture is the documentation and authenticity. Using the blockchain technology could provide an avenue for complete authenticity, transparency and success in the movement of documentation that corresponds to harvests. The organic certifications, Global GAP traceability information, and the details on the transportation and physical storage of the raw materials, could all be built into the blockchain and provide a new level of confidence and accessibility to the credibility of a value chain.
With the adoption of just these two innovations, blockchain technology will have a monumental impact on the agriculture industry. It will be part of a great modernization that is taking place in food safety, transaction, and traceability.