Advantages and Limitations of Blockchain in Agriculture
There are numerous advantages to using blockchain technology in agriculture, but the limits of blockchain in agriculture must be overcome to advance this technology and see further developments.
Fremont, CA: Blockchain is one of the most recent advancements in the field of information and communications technology, and it has already started to transform the world. Blockchain's uses are only just beginning to be fully explored, and its potential is enormous. The agricultural industry's dynamics have recently been influenced by blockchain. In farming or agriculture, blockchain is used as a technology to assist enhance the number of reliable information available about inventory, agricultural contracts, and the general state of the farms. In the past, gathering this type of data was costly, but blockchain has the potential to change that in the near future.
Advantages of blockchain in agriculture
● In agriculture, blockchain enables peer-to-peer transactions with unprecedented transparency and eliminates the need for an intermediate or middleman.
● The lack of a central authority figure alters the transaction's nature of trust. Rather than putting faith in a central authority, reliance is placed on peer-to-peer networks and cryptography.
● Blockchain technology helps in the improvement and restoration of trust between various stakeholders, including consumers and producers. In the long run, this may assist in lowering market transaction costs.
● The use of blockchain technology makes it much easier to track products across a large supply chain. Customers' concerns about the safety and quality of the meals they consume are alleviated as a result of this.
Limitations of blockchain in agriculture
● It is crucial to investigate the motivations of all transacting parties to offer reliable information on the blockchain ledger. For small-scale farmers, this is especially important.
● Depending on the farm size, the total technological benefits of implementing blockchain may vary. While small farms find it easier to engage in blockchain-based insurance, larger farms find it easier to collect and integrate numerous sources of real-time farm data.
● It is well known that uploading data to a blockchain is time-consuming. Farmers who cannot afford blockchain face a significant barrier to adoption.
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