Blockchain In Agriculture: Possible Use Cases
The agriculture industry has always been the main pillar of every nation that supports its GDP growth. In the U.S, the agriculture industry alone helps the GDP growth by more than $900 billion every year. With more than 24 million jobs directly or indirectly related to the agriculture fields. Hence, it becomes very important for the government to maintain the agriculture field as a competitive market.
With the industries expanding its market value, it has become very difficult for the agriculture industry to keep tabs on everything. This can make the whole industry crumble. To make sure that does not happen, people are trying to implement different techniques to support the agriculture industry.
In the midst of the trial and error phase, blockchain technology was introduced in the market. After the introduction of the blockchain technology, agriculture industry found a new way to solve their problems. Though blockchain is still in the experimental phase, people believe that it has the potential to solve any problem with the right implementation.
Here are some of the ways in which blockchain can be implemented in the agriculture industry.
- Inventory management
In the agriculture industry, the post-harvest loss is a common issue. To avoid that from happening, farmers need to be proactive with their inventory management system. With the food inventory management system, farmers can reduce post-harvest losses. This also happens due to a lack of communication among the drop traders.
But with the blockchain technology in the picture, the communication problem is solved easily. This way every member will get the real-time notification on the status of the crop and will be ready with the required inventory space.
- Enhancing supply chain
Most of the crop gets destroyed due to the delay in transportation. To reduce this phenomenon, people are trying to experiment new supply chain network to reduce their additional losses.
In a study, it has been found that with the help of one single supply chain the efficiency of the agriculture industry increases. In addition, the productive rate also gets a boost of more than 70%.
With the help of blockchain technology, all the producers and the companies use a single network to communicate with each other sharing real-time status of the agriculture. This can really help then to improve the supply chain management system.
- Enhancing Farm Management software
With how the agriculture market is growing, people have started using the Farm Management Software rigorously. Analysts are predicting that at the end of 2025, the total market value of the farm management software will be more than $5 billion. And most probably this amount might double itself by 2050.
With the help of blockchain technology, the farm management system can get all the information of all the nearby places and traders that deal with agriculture. It can inform all the nearby farmers about crop status. This can help the traders and the farmers with the real-time monitoring of the crops.
- Fair Pricing
Fair pricing for farmers has always been an issue. Bad weather conditions, less demand, and irregular supply, all the factors affect the income of the farmers. To improve the condition for the farmers, the governments are trying to come up full proof plan to give well deserve justice to the farmers.
With the help of blockchain technology, farmers will be able to connect with each other in real-time. This way they will be able to exchange information regarding commodities, global demands, and stock prices.
You will find many people criticizing the blockchain technology and many supporting it. It is totally up to you how you want to see the blockchain to be used in the agricultural industry. With the right implementation of blockchain technology, farmers will also be able to restrict the post agriculture loss.
In addition, farmers will also be able to use the Cryptocurrencies to toe exchange their crops. With a complete cycle, farmers will be able to tell others about the story of Crypto Gps