A three-course meal was traced entirely from the farm to the fork using an in-production Blockchain...
Did you know that blockchain was a driving force behind the popularity of Bitcoin? In addition, the blockchain revolution is not only limited to cryptocurrencies but can also be applied in various other industries, such as the food industry. This happened for the first time ever in 2018 when a three-course meal was traced entirely from the farm to the fork using an in-production blockchain – and this is just the start.
What is the blockchain?
The blockchain refers to a digitalised, dispersed spreadsheet that records transactions and tracks assets in a business network. The assets could be tangible or intangible in nature. Since these assets are distributed by the countless number of computers in the business network worldwide, they cannot be controlled by a single person. Instead, when a person uploads a transaction to the network, the systems run complex algorithms to check if the transaction is valid. If this transaction is binding, it is linked to the preceding transaction. This set of linked transactions is the blockchain. It is known as the blockchain because the transacted data is stored in blocks, which when combined, form a chain.
Blockchain consists of three key concepts:
Who are blockchain participants?
How does blockchain work?
The process begins when a new transaction or an edit to an existing transaction is recorded in the blockchain. This is followed by multiple computers or nodes implementing algorithms to analyse the authenticity of the transaction and the history of the individual who recorded the transaction. If no red flags arise at this stage, these transactions are accepted into the ledger and a new block is added to the pre-existing set of linked transactions. On the other hand, if some issues regarding the transaction happen to appear, it is not added to the ledger and therefore to the chain.
Blockchains are versatile and can be structured in several different ways. The method employed depends on the objective to be achieved.
In addition to being versatile, blockchain has other benefits, including:
Imagine you could trace the source of your food in seconds...
Transforming the food industry using blockchain technology
Imagine you could trace the source of your food in seconds or if you could check if the fruits you purchased were actually organic. This could actually happen in the near future, with blockchain set to make its debut in the food industry. Blockchain can help in many ways through:
Blockchain also benefits the players in the food supply chain process in the following manner:
Benefits of using blockchain in supply chains
Use and optimisation of blockchain largely depends on market dominance, regulatory factors and, ultimately, the honesty of the blockchain writer. There is the ability to check verification of the blockchain writer, but fraudulent data can be written and remain undetected. Ultimately, blockchain implementation is a strategic business decision that requires careful analysis of the pros and cons within the context of each organisation.
GISMA Business School offer a stepping stone into this industry with the newly launched MSc International Agribusiness. Designed for young and ambitious professionals, this course is FIBAA accredited and based in the agricultural cluster of Hannover, Germany – a fantastic location for employment opportunities in this field. Enquire now for more information.