How blockchain technology can help solve the $40 billion food fraud problem

Food fraud isn’t a term you hear every day, but according to the US-based Customer Brands Association, it’s a $40 billion problem that affects about 10% of the global supply chain.

From chips masquerading as Parmesan cheese to lawsuits over the size of Whopper burgers, American citizens are increasingly concerned about the quality of the food they eat and the integrity of the supply chains that bring it to their plates. In 2022, a survey conducted by the International Food Information Council found that only 24% of US citizens had confidence in the safety of the US food supply, with additives and ingredients a major concern.

In an effort to solve this colossal problem, innovative companies like UNISOT are using blockchain technology to increase transparency and enable consumers to track food products from source to point of sale.

How blockchain technology can help fix the problem of food fraud and fix supply chains

Blockchains are essentially distributed databases that cannot be changed without consensus, meaning that data written to them has true integrity. Entries are time-stamped and stored in these immutable databases, and any future changes to the data are recorded and visible to all concerned.

Using solutions such as those operated by UNISOT (using nChain technology), every step in the life cycle of a food product, from farm to plate, can be tracked and traced, creating hitherto unforeseen transparency and true accountability. Everything from the farm something is grown on, to the chain of custody along the supply chain, to the conditions in storage facilities and transport vehicles, can be tracked and tracked, leaving an immutable record on the blockchain for all to see.

When consumers pick up an item at a supermarket or order something at a restaurant, they can see all this information just by scanning a QR code. This allows customers to make more informed decisions, giving them confidence that the food they are about to consume has been produced in a way that is consistent with their values ​​and that it is what it claims to be. In short, selling chips like parmesan cheese will become impossible in a blockchain-powered world.

Strengthen companies and organizations in the food industry

Blockchain technology can empower consumers, giving them all the information they need to make better choices. However, this technology can also create positive changes for companies involved in the food industry.

For example, in 2022, Nestlé France (NASDAQ: NSRGF ) was hit with a €250 million ($276 million) civil lawsuit after an E. coli outbreak killed two children and infected dozens of others. This has been called Europe’s biggest food scandal in 30 years, and caused panic in France’s food industry.

Apart from the human tragedy at the heart of this terrible incident, Nestlé, as a business, suffered significant reputational damage and will pay heavy fines to those infected. Yet large companies dealing with hundreds or potentially thousands of suppliers have, until now, had no bird’s-eye view of what is going on in their supply chains.

Could blockchain-powered solutions have prevented this tragedy? Unfortunately, we will never know, but they can certainly make it easier to detect outbreaks and prevent infected food from reaching the mouths of unwitting people in the future, create a safer, better food industry for all parties, and save companies from reputations. and economic damage that accompanies these unfortunate events.

The utility of blockchain technology is becoming apparent

Until recently, the blockchain industry has been characterized by feverish speculation about tokens issued on and linked to various digital ledgers. Fortunately, that era is over and the innovation that blockchain technology can usher in is coming into view.

However, for blockchain to reach its true potential and revolutionize supply chains, it must, among other things, scale infinitely, comply with relevant laws and regulations, and be understood by the businesses and ordinary people who can benefit from it.

Fortunately, there is at least one scalable blockchain that was designed from the ground up to comply with financial and data regulations; Bitcoin SV (BSV). To learn more about it and other utility blockchains, or to pitch your solution or product to a receptive audience, purchase a free ticket to the largest blockchain conference in the world between May 31 and June 2.

The London Blockchain Conference welcomes entrepreneurs, developers and thought leaders from across the blockchain industry to speak, pitch and mingle with like-minded people. Book your ticket today!

DunavNET’s Srdan Krco on how Blockchain & IoT will transform the food supply chain

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