Will Blockchain Be the Next Revolution in the Agriculture Sector?

Although the financial industry is where blockchain technology first gained popularity, it has a wide range of uses that go beyond cryptocurrencies. Yet, the agriculture industry could undergo a total change thanks to blockchain.

Present Scenario of Agriculture

Over two billion people, or 26.7% of the world’s population, work in agriculture. The agribusiness market is anticipated to grow to $19 trillion in 2027. Agriculture has a significant role in the economy and generates a lot of jobs in many nations throughout the world. It is predicted that the food demand would rise by 35% by 2030. In order to meet the demands of an expanding population, this would inevitably require more effective manufacturing processes.

Many physical, economic, and environmental issues beset the agriculture sector in many countries, and fewer people are now thinking about a profession in farming. According to a survey, several farmers want to switch to another line of work for themselves and their children but are unable to do so due to a lack of enough nationalized social services.

Usefulness of Blockchain in Agriculture and Its Potential

Distributed ledger technology (DLT), on which blockchain technology is based, enables data entered into the system to be shared among all users. A piece of data enters the ledger once it is entered and accepted on the blockchain. By eliminating the necessity for a middleman in payments, blockchain technology increases the transparency and immutability of data once it has been posted.

The farming and distribution industries face complex issues that the agriculture industry is always working to solve. The provenance of agricultural products cannot currently be determined in a straightforward, precise, or effective manner. Blockchain technology possesses every element required to function as a true solver. In contrast, the available technologies are either insufficient or unaffordable.

As a result, formalizing the identification of both parties involved in the deal is no longer necessary thanks to blockchain technology, saving a lot of money. This technology makes it possible to manage supply chains more successfully, establish pricing fairly, lower transaction costs, and do a variety of other things.

The potential benefits of blockchain in agriculture will optimize the supply chain, lower the transactions cost, and meet the demand for farm financial supervision.

Blockchain Limitations in Agriculture

Because blockchain technology remains in its infancy, investors and developers should be cautious. Scaling, volatility, and ambiguity are a few valid worries about DLT. A significant learning curve exists for testing and implementing blockchain technologies. The adoption of blockchain by consumers still faces obstacles. With cell penetration exceeding 50% in even low-income countries, technology is becoming more important in emerging nations. Focused branding and assistance demonstrate the viability of this acceptance.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.