Will Blockchain be the next revolution in the agricultural sector?
Although the financial industry is where blockchain technology first became popular, it has a wide range of applications that go beyond cryptocurrencies. Nevertheless, the agricultural industry could undergo a total change thanks to blockchain.
Current agricultural scenario
Over two billion people, or 26.7% of the world’s population, work in agriculture. The agricultural market is expected to grow to $19 trillion by 2027. Agriculture plays a significant role in the economy and generates many jobs in many nations around the world. It is predicted that the demand for food will increase by 35% by 2030. To meet the demands of a growing population, this will inevitably require more efficient production processes.
Many physical, economic and environmental problems plague the agricultural sector in many countries, and fewer people are now considering a career in agriculture. 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.
The utility of blockchain in agriculture and its potential
Distributed Ledger Technology (DLT), on which blockchain technology is based, allows data entered into the system to be shared between all users. A piece of data enters the ledger when it is entered and accepted on the blockchain. By eliminating the need for an intermediary 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 agricultural industry is always working to solve. The origin of agricultural products cannot currently be determined in a simple, precise or efficient way. Blockchain technology has all the elements required to act as a true solver. In contrast, the available technologies are either insufficient or unaffordable.
As a result, it is no longer necessary to formalize the identification of both parties involved in the agreement thanks to blockchain technology, which saves a lot of money. This technology makes it possible to manage supply chains more successfully, establish fair prices, reduce transaction costs and do a number of other things.
The potential benefits of blockchain in agriculture will optimize the supply chain, lower transaction costs and meet the demand for farm financial monitoring.
Blockchain limitations in agriculture
Because blockchain technology is still in its infancy, investors and developers should be cautious. Scaling, volatility and ambiguity are a few valid concerns about DLT. There is a significant learning curve to testing and implementing blockchain technologies. The adoption of blockchain by consumers still faces obstacles. With cell penetration exceeding 50% in even low-income countries, the technology is becoming more important in emerging nations. Focused branding and assistance demonstrates the viability of this acceptance.
Disclaimer
The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
