The food industry relies on increased adoption and use of blockchain technology to streamline the process of tracking, planning, and managing their supply chains. A website is a completely automated cryptocurrency trading platform offering the best features like liquidity, trading tools, and customer support. The food industry is transforming into a decentralized system that uses distributed ledgers for different purposes like inventory controls, logistics management, and product traceability. These characteristics are critical in ensuring quality assurance throughout the food supply chain. So, if you plan to invest in Bitcoin, you may consider knowing about Bitcoin And Fiat Currency.
The value of blockchain technologies for these applications will continue to increase in 2022 as the decentralization trend continues to grow among various companies within this industry. Blockchain-based platforms will be the new standard for the food and agriculture industry, offering consumers better traceability and data insights. This technology will focus on B2B transactions, where companies must trade in agro-commodities daily.
Blockchain resolving to challenge of food safety:
Food safety is one of the biggest challenges that all blockchain initiatives face, as there could be some issues with determining contamination levels of foods or products. It is why experts believe that blockchain will not replace certification organizations but complement their work by providing real-time information shared across participants in a blockchain network.
Blockchain technology is also catching in on the international trade market. The ocean shipping industry mainly uses technology to secure shipments, protect against cyber-attacks, and ensure the authenticity of goods. Blockchain has been proven to be more secure and efficient than other technologies in shipping digital data.
Blockchain will continue to transform into a standard requirement for all value chain management in the food industry. Trade processing in this industry is where blockchain technology shines due to its ability to eliminate manual procedures while offering greater transparency and efficiency, thereby making these transactions more accurate and predictable.
How could the food industry benefit from the adoption of blockchain?
1. No food wastage:
The global food system generates a large amount of waste, so food companies must alter the current system. Over 50% of all food produced globally is wasted annually, which could increase dramatically in the coming years due to various factors. For example, due to heavy rains in South America, there are shortages of certain crops, which has led some farmers to be unable to sell their raw materials for a price lower than their production costs.
Millions of tons of food that people in the market would have sold are wasted, which increases overall costs and leads companies to waste vast amounts of resources every year. Blockchain will have the ability to solve this issue by storing all quality data, which will ensure that companies no longer have to send out poor-quality produce and rely on new technologies to track their products and manage their supply chains.
2. Food Data and Quality:
Another advantage of utilizing blockchain technology is that it allows users to store high-quality data about the product. The system can then ensure that high-quality data is stored permanently, which is impossible with other technologies like RFID or QR codes. Furthermore, various stakeholders can access this information across an entire supply chain.
One of the main reasons blockchain is becoming increasingly popular within the food industry is the complex nature of its supply chains. These supply chains often include several stakeholders, and it can take time to understand how these different entities work together. Blockchain is well-equipped to handle international and local transactions, allowing information to be shared in seconds.
3. Better traceability:
One of the biggest challenges that will continue to grow in popularity within the food industry over time revolves around building trust between consumers and producers. Unfortunately, it can lead to food-borne illnesses, which could cause public fear and force companies to invest a lot of time and money into ensuring that their supply chains are safe.
The technology can provide accurate labeling, traceability, and authentication of products throughout the entire supply chain. In addition, this technology can track individual items from the farm to your table using IoT technology, which allows users to determine the quality of certain products at any given time without having to go back through their history.
4. No counterfeit products:
Counterfeit products are one of the main issues companies must deal with yearly. Counterfeit goods represent about 8% of global trade, which can considerably threaten legitimate business owners and consumers.
Blockchain offers several benefits when it comes to eliminating counterfeit goods, such as preventing unauthorized duplication of data or encoding, which means that all information will be hard to replicate.
The technology also provides authentic records through irrefutable digitally-signed contracts and transactions. As a result, blockchain will also play a key role in reducing overall costs throughout the food industry supply chain. In addition, this technology provides real-time insight into transportation times, allowing manufacturers to make adjustments when needed.