The Potential Uses of Blockchain Technology in the Food Supply ChainOctober 11, 2018
In the food sector, blockchain tech is well on their way to becoming the great technology to set the rights on. That’s because they enable and simplify the exchange of data among individuals and could massively influence the supply chain. How do they really work? What are the particular benefits for the food industry?
Blockchain Technology and the Food Sector
Blockchain technology can be utilized to enhance the quality and traceability of products by offering dependable data about their status and origin. The goal is to offer food products with enhanced freshness to put the minds of the consumer at ease. To do so, a blockchain depends on three fundamental principles.
- User collaboration. The way blockchain technology runs support networks to guarantee the security
- Secure and fast transactions with blockchain, the information is moved in a matter of minutes. After the data has been verified as reliable, it’s copied on different networks to guarantee security.
- Data transferred is available to everybody. Thus, blockchain help battle against opacity of the supply chain. You see, supply chain actors can track every step within the manufacturing process of goods, from the production to the point of sale. What’s more: the traceability makes it possible to determine any possible issue and to take action promptly.
Blockchain Technology within the Food Industry: Perks All Around
Along with the implementation of the blockchain, every actor involved in the food supply chain can have authorized access to dependable information on the status and origin of food products. Apart from that, each of these actors has more to gain.
- Consumers – The transparency given by the blockchain boosts the trusts of consumers. They have the assurance that labels are consistent and can adapt their consumption habits based on their specific needs – growing or farming methods, preference for origin, and more.
- Distributors – When the wrong item ends up on the shelves of the grocery store, it can be determined and removed easily. Through blockchain technology, you can easily pull up data and hence prevent the high prices of eliminating the whole batches if only several items are contaminated.
- Producers – With blockchain technology, any effort to change an item can be detected immediately, and a notification will be delivered to the producer. That detection can avoid the similar incident from occurring to the distributor. Furthermore, transparency can drive some industries towards more responsible and ethical practices.
For instance, XinFin is a hybrid blockchain technology that offers accessibility and transparency of public blockchain shared with security and scalability of the private blockchain. You see, the XDCE platform aims to establish a strong application deployment layer within their blockchain network.
In the supply chain industry, the development of blockchain technology is a genuine godsend. Apart from making sure secure data and traceability, this technology supports collaboration among the links of the supply chain. It also offers a way to regain the trust of consumers and avoid the food sector from being humiliated by new food scandals.