You may be amazed to see a topic like this. The general belief that blockchain is for the financial industry is an unparalleled authority in the sector, especially cryptocurrencies like Bitcoin and Ethereum.
You are not wrong in your belief, what you are about to read here is the multiple use cases of blockchain technology that has been discovered in the last decade. The food industry is one of the industries in which blockchain is useful.
Blockchain technology is a digital distributed ledger, maintained by a network of multiple computing machines in basic terms. It stores data in the form of blocks that are cryptographically secured and immutable. The characteristics that make it easy for blockchain technology to be diversified are its immutability, ability not to be altered, which gives a great sense of originality and authenticity, and its ability to secure data cryptographically.
Blockchain can help in the supply chain of food.
There's a huge problem in the supply chain of food materials, including exhausting efforts and resources put in place that come with huge costs while the quality of the product can be questionable. Communication gaps or not duly monitored due to various factors like distance, time, and others. blockchain has a significant impact on reducing efforts put in place with the aid of a smart contract.
There are numerous actors in the supply chain, from the suppliers providing the raw food materials to the wholesalers, retailers that sell food products to the consumers. The smart contract function will output a more effective supply chain with fewer efforts, improved margin, and efficiency with reductions in the number of intermediaries in the supply chain network, though not 100% proved useful. In summary, blockchain technology helps streamline the supply chain and reduce processing costs with less effort. Giant food companies like Nestle and Starbucks have harnessed this system to their advantage to have the edge over their competitors.
Blockchain can help to improve traceability.
Traceability is one of the significant advantages blockchain technology has blessed the food industry as it gives detailed processes of the products, which has helped the profitability of the products. It’s a whim that customers crave. It provides the customers with the idea of how the product is produced, which gives them a sense of belonging as an essential factor in the company hierarchy as they are empowered with data made available to them. Also, it makes it easier to trace food products back to its origin and investigate foodborne illness when it arises due to a reasonable amount of data collected, which is a belief due to the immutability characteristics possessed by the blockchain technology.
Blockchain helps to eliminate fraud in the food supply.
Food fraud is another area of blockchain technology that has improved. Fraud means purposely altering, misrepresenting, mislabeling, substituting, or tampering with any food product along the supply chain process from the supplier to the end consumer.
It is common in our food industry space, which needs to be dealt with zealously as it is responsible for many diseases and death cases.
Several IT giants have made different blockchain platforms or solutions to the food industry; few examples include Food Trust and Watson platforms by IBM, Track and Trace, and Leonardo platforms by SAP, Track and Trace, and Internet of Things solutions by Oracle.
The importance of blockchain technology in the food industry is underrated. It helps solve many problems in the present food supply chain and ensures that food contamination or fraud is removed from the system.