Fighting deforestation using blockchain and AgTech

Blockchain technology has long been part of the revolution in global supply chain management and agricultural operations. But as the world continues to face the negative effects of global warming and the growing need to change how companies approach natural resources, this technology has an even bigger role to play.

Deforestation is one of the main contributing factors to the rapid rise in global net temperature. Forests form an essential part of the flora and biodiversity of the planet, and as industrialization and urbanization begin, deforestation becomes an obvious problem.

Blockchain technology and AgTech can play a significant role in reducing the rate of deforestation globally. Also, companies and businesses are starting to take notice, and more entrepreneurs are using this type of technology at the core of their business.

Sustainable supply chains with extra security

AgTech helps fight deforestation by supporting the development of sustainable supply chains. Through blockchain technology, AgTech can help business owners and farmers trace the origin of agricultural products and ensure they are produced using sustainable practices.

Importantly, AgTech can help increase sustainability throughout the supply chain through the use of precision agriculture tools such as sensor networks, drones and precision planting equipment. These tools can help farmers better understand the conditions on their land and make more informed decisions about planting, watering and other aspects of farming. This can lead to increased yields and lower production costs, which in turn can reduce the need to clear new land for farming, and ultimately reduce the environmental impact from the agricultural sector.

Additionally, as improvements come to the blockchain technology sector, AgTech products are also becoming more advanced. AgTech pioneer Dimitra, a global leader in blockchain integrations in the agriculture industry, uses artificial intelligence, satellite imagery and mobile technology to help increase sustainability and increase transparency across the supply chain.

AgTech tools can also help implement sustainable agricultural practices such as crop rotation, cover cropping and agroforestry. In turn, these techniques can improve soil health, reduce erosion and increase the soil’s overall resilience.

This is just one example of how Web3 tools can help reduce the demand for products created through deforestation and promote the use of sustainable products. Not only that, but AgTech also offers traceability solutions that can help businesses prove the origin and final destination of their products in compliance with various local regulations.

Regulation and compliance

The European Union aims to lead the way in terms of regulation and compliance requirements for companies and producers who want to help fight deforestation. The union’s regulatory body introduced rules requiring importers to provide documentation that ensures goods brought to the local market are obtained sustainably and in accordance with deforestation regulations.

These regulations mean that the EU bans trade in products linked to deforestation worldwide and helps to combat the effects of climate change. Traders and operators have 18 months to adapt to the new regulations, while smaller companies have two years to adapt. Nevertheless, all businesses will have to prove that the products do not originate on land that has been deforested after 31 December 2020. Operators must provide satellite evidence showing that the farms of origin have not been involved in deforestation, as well as GPS evidence of the source of products, operators must verify that their production also complies with local laws in the producing country.

This is another sphere where blockchain technology and AgTech can play a central role. As more and more companies turn to distributed ledgers to improve their supply chains, the tracking and monitoring of all materials used throughout production has also become more transparent.

In addition, Web3 companies join the effort to limit deforestation. Based on supply chain management tools, Dimitra has created a blockchain-based deforestation certification module as an upgrade to the Connected Farmer and Livestock Guru platforms. This module performs deforestation assessments and verifies compliance for manufacturers, retailers, consumer goods companies and regulators based on data stored on the blockchain.

Fight for a better future

While AgTech is still a relatively new sector and only a few agricultural companies have adopted blockchain-based solutions, this technology has great potential to bring sustainability into the industry.

Companies like Dimitra are actively working to bring user-friendly and accessible AgTech solutions that can be implemented in businesses of all sizes – from the smallest farm to the most significant agricultural conglomerate.

The fight against climate change is one of the ultimate challenges facing humanity at the moment, and blockchain-based solutions may just be the saving grace when it comes to factors like deforestation.