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The Impact of Blockchain on the Food Supply Chain

Blockchain’s capabilities of keeping ownership records and tamper resistance in the present food system can be utilized to solve pressing problems such as food fraud, safety recalls, supply chain inefficiency, and food traceability. In this post, we will examine in greater detail how blockchain could positively impact the food ecosystem in light of these challenges. Consequently, charging a higher price would give a financial incentive. In the meanwhile, several financing models could solve the incentive issue. Numerous blockchain Wallet development company are constructing inventory finance models that let businesses obtain revolving credit lines using goods as collateral.

Blockchain Technologies

Food Accountability

Recent food safety issues have centered on food traceability, particularly with the advent of blockchain applications. Due to the nature of perishable foods, the food sector is prone to errors that could ultimately endanger human life. When foodborne pathogens pose a hazard to public health, the first stage of root-cause analysis is to identify the contamination source, and there is no room for doubt.

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Traceability is therefore essential for the food supply chain. Due to the current communication structure within the food ecosystem, traceability is time-consuming, as some parties still track information on paper. The nature of blockchain ensures that each participant in the food supply chain will generate and securely share data points to establish a system of accountability and traceability. Massive data points with labels indicating ownership can be recorded quickly and without modification. Consequently, the record of a food item’s path from farm to table is available for real-time monitoring. To reap more benefits from this opportunity, read Our blog on How Will Blockchain Identity Management Deliver Standout Performance In The Upcoming Future?

Optimal Market Access

The applications of blockchain in the food industry extend beyond food safety. In addition, it provides value to the current market by building a network ledger and balancing market prices. Instead of relying on the knowledge provided by the complete value chain, the traditional price mechanism for buying and selling relies on the opinions of the involved parties. The availability of data would generate a comprehensive picture of supply and demand. The deployment of blockchain technology to trades may also revolutionize traditional commodities trading and hedging. Blockchain enables verifiable transactions to be securely shared with every participant in the food supply chain, so creating a highly transparent marketplace.

Several problems and doubts persist, making it difficult to deploy the technology in the food supply chain, despite the technology’s numerous promising applications for food.

Blockchain Challenges

System Complicatedness

Overcoming the food ecosystem’s complexity presents the initial obstacle for businesses entering the field. Implementing blockchain technology on a normal agricultural production site requires a specialized system and improved data entry procedures. Agricultural products have numerous shapes, storage methods, handling procedures, and data recording formats.

Multiple platforms and non-synchronized terminology frequently present obstacles to the food system’s adaptation. The food ecosystem consists of several participants (i.e., distributors, purchasers, and wholesalers) and complex systems, including terminal markets, distribution networks, and trading platforms. Implementing blockchain at scale necessitates extensive customization at the granular level, including farm operations, working around the existing ERP system, and altering the data collecting procedure.

Data Transparency

Those who oppose blockchain technology for the food industry also express worries about data transparency. Disclosure of data would give accountability for trading activities and farming operations, which would validate claims such as organic, fresh, and premium grade. If something goes wrong, precise information may be inspectand generate a backlash against businesses. It is tough to seek the voluntary disclosure of information, especially when sensitive information could impact enterprises. Consumers may devalue or reject the product outright in agricultural production if a pesticide is employ to battle plant disease during manufacturing. Farmers may hesitate to adopt blockchain technology if competitors create a competitive advantage by obscuring certain products or processing data.

The capacity of blockchain to handle massive amounts of data, particularly trading data, is an additional problem. The deployment of blockchain technology in trading, where more major economic effects may occur, has received the least attention to date. First, large businesses are primarily interest in using blockchain because they have the infrastructure – both technical systems and data – to facilitate data processing automation at the farm level. In addition, as one of the blockchain’s constraints, the structure and scaling must be meticulously considere, as each transaction added to the blockchain will increase the database size. Either a smaller ledger (each node cannot carry a complete copy of the blockchain) or a more centralize control should be implement in the network. Therefore, corporations require massive pilots to test the limits of blockchain before its establishment.


Over the past several years, blockchain technology has evolved and been widely available to alter various industries, particularly the food industry. The blockchain industry is saturated with inventors. Bext360 employs IoT, blockchain, machine learning, and artificial intelligence to construct a fully transparent food supply chain. They offer the SaaS platform to growers and other participants in the value chain for sharing data and monitoring progress.

Read more: Fascinating Blockchain Project Ideas To Generate High Revenue

Blockchain Food Market Map

IBM Food Trust, ChainTrade, Farm2Kitchen,, Arc-net, Avenues-GT, Owlchain, and TE-Food are a few further significant pioneers in this industry. ChainTrade and Avenues-GT are constructing a decentralized trading platform for tokenized commodities, while Arc-Net focuses on brand protection and validation. They resolve the aforementioned obstacles and construct the next phase of blockchain applications from various perspectives.

The Future of Blockchain

Incentives monetized are, in our opinion, the missing component for overcoming obstacles and worries. Numerous parties in the food ecosystem are frequently imped by the early expenditures and commitments required to use blockchain. The technology must either increase prices or decrease costs to be economically viable. Even while more customers advocate for transparency and food safety, if the price does not justify the expense, there is no incentive for industry participants to participate.

The recent development of the organic industry is a great case study. Consumers and producers have gone a long way in accepting organic food. However, once the additional price is explain and supported by certification, the incentives for food corporations and producers to switch to organic became readily apparent. However, consumer pressure is typically insufficient to inspire systemic improvements unless there is a clear prospect for revenue. 

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