Today our table talk is blockchain’s collaboration with the food industry for better. People are settling with blockchain as they understand is application and limitations in regard to their lives. The Blockchain phenomenon is slowly settling into individuals lives, which makes it important to recognize its limitations and applications. Nowadays, we are going to talk about how Blockchain is able to make the food sector much better.
Almost the current food system of ours comes with a fertile chance to enjoy just how the Blockchain technology is able to communicate with the ecosystems of ours – both ecological and human – to bring value to the lives of ours. Thankfully, a selection of startups is currently hard at work in this specific place.
Therefore after the launch of Ethereum, altcoins evolved into a favorite approach to display ideas for new cryptocurrencies. We’re at the moment in a time of buzz, in which a lot of designers are proposing crazy ideas to fix either trivial or nonexistent problems. It is crucial that culture and designers focus on using Blockchain to important and relevant tasks, instead of assuming Blockchain engineering is a one-size-fits-all panacea.
Eating healthy food
Food quality is with chronic illnesses including heart disease, liver damage, stroke, cancer, and diabetes, to name a few. We are able to considerably lower chronic illnesses by enhancing the quality of foods offered. Which involves a solution to the following question: So why do we consume poor quality foods?
This big issue is into three parts: production, sale, and delivery.
Farming forever suggests risks that are high – natural disaster, accidents, harvest failure, etc. – that immediately impact what a farm is able to provide. Market conditions and large farming corporations may additionally create the life of little farmers challenging. The companies usually abuse the positions of theirs by utilizing pricey fertilizers and patented GMO seeds to develop competitive benefits over smaller operations.
One other issue is in the strategies of food delivery. Modern agriculture is underneath the siege of big chains’ producer-distributor-consumer version. Large-scale food manufacturers typically organize industrial food output in developing nations. They then produce large-scale distribution networks to market the meals globally.
Seems like producers are usually not able to market their goods right to customers. They are here to appeal to distributors or traders that purchase their product cheaply. Huge businesses are in a position to cheaply mass produce meal and pack the distribution channels, though this particular food isn’t totally consumed. The effect is the construction of a brand new problem: disposal and food waste. Resources as gas and fertilizers are useful to create and distribute food.
Possible way to solve the issue
Fortunately, health, eating, agriculture, farming, and strategies are interconnected, and also we are able to fix these challenges through contemporary technologies, utilizing experts that realize the systems.
We spoke with Liz Reitzig, founding father of NourishingLiberty, who’s spent 15 years working on food systems from every perspective. She’s a consumer advocate that has been effective in retail, farmer support, agriculture and policy.
Blockchain as a Financial Tool
Blockchain technologies offer up great financial tools to offer farmers a complete and timely payment for the efforts of theirs. Making use of these solutions are going to help to stay away from danger and also create the farmer’s life a lot easier. Based on Reitzig:
“Blockchain…offers [a] means for farmers to contract with sellers to grow what is needed. Full or partial payment can go into escrow immediately…to guarantee payment to the farmer without breach of contract and coercion by marketers. Getting paid for labor is a big challenge in the farming world, and Blockchain can alleviate part of that.”
Because of smart contracts, farmers are able to get paid out all season long, not just in fall and summer. Making use of a calculation system dependent on smart contracts, it’s a lot less dangerous to utilize pre-orders, buying clubs and food baskets.
“Some farms produce something called a community supported agriculture (CSA) share. This is a growing model where the consumers prepay a farm for the whole season. We might pay $500 at the beginning of spring, and we’ll get a box of veggies every week for 30 weeks. Blockchain can handle that entire transaction.”
Noteworthy one of the primary farmers which implemented Blockchain as a monetary instrument to create his economic system was Mikhail Shlyapnikov, a farmer from Russian Federation. He launched his cryptocurrency for the farm of his.
“A farmer has different tools: Shovels, tractors. A blockchain is also a tool, and it’s up to you if you use it or not.”
Make deliveries easy
Smart contracts are able to have any parties and any conditions without involving lawyers. For instance, utilizing an intelligent contract, the proprietor of a tiny cafe can buy coffee seeds from a Kenyan farmer.
All at once, an individual is able to buy distribution to Europe. This pay for the job of the practices agent and for certification based on the laws of the nation’s delivery. Smart contracts will complimentary farmers from the lengthy chains of intermediaries and therefore reduce the ultimate cost of the item with the customer.
Origin of the products
Seems like implementing Blockchain into the production, accreditation, and food processing steps, make transparency in an otherwise non-transparent program. This also allows customers to help suppliers they choose. It’s very pertinent for certified and organic origin products.
Liz Reitzig stresses the benefits of figuring out the origin of organic products:
“If a farm is certified organic, or they want to emphasize a different kind of certification, they can use Blockchain to track products. Consumers want to know what they are buying, and Blockchain can offer that.”
Marcel Blankenstein, the proprietor of Naked Organics, believes that origin info might be good for the person so long as it is usable:
“Blockchain in agriculture allows the consumer to scan the barcode of a product in the supermarket and instantly view the entire supply chain from supermarket to farmer. In terms of consumer orientated transparency. From a regulatory perspective, agricultural contamination can be very quickly isolated.”
How can a farmer use Blockchain?
Reitzig thinks that the hardest hurdles for Blockchain implementation in are actually terminology and complex work principles. She says:
“The biggest challenge for farmers in using Blockchain is in overcoming the technical understanding of it. Farmers are focused on farming. They are not on the cutting edge of technology.”
Finally, this includes Blockchain solutions should be easy to comprehend and use. A number of startups are operating in this area. One particular organization has created a whole platform making Blockchain use easier for farmers. They united all of the Blockchain functions regarding food, agriculture, and farming.
Consequently, this product incorporates sensible agreement libraries, remote identification methods, a digital currency payment processor, an intelligent cryptocurrency wallet, and also their very own electronic currency token. Gregory Arzumanian, co-founder of 1000Ecofarms, says:
“We learned all the opportunities that Blockchain technologies can help with. When the Blockchain technologies are tangible and understandable, we can apply them even to the basic human need for food. [A] key objective is to create a global, comprehensible and safe ecosystem for agriculture and food businesses that would allow them to significantly reduce the expenses related to the production, sales, and logistics of the consumable goods.”
Blockchain is not a nostrum
Blockchain technologies can alleviate technical difficulties and simplify the farmer’s life. This would make our food – and thus our health – much better. There remain issues that consumers that are only being able to help them fix, however.
Marcel Blankenstein is certain the primary challenge each contemporary farmer faces is consumers’ ignorance, that should be solved before Blockchain is able to achieve its full potential:
“Unless consumers are taught to understand that conventional farming is “bad,” Blockchain will have very little “good” purpose, from a sustainability perspective. It’s important to remember that traceability does not equal good farming techniques and quality food does not equal healthy food.”
Thankfully, we see modern day farming moving rapidly towards sustainability. Organic and healthy food is starting to be affordable and popular ever-increasingly because of Blockchain technologies, meaning direct transactions with customers may be worthwhile for farms that are small.
Peer-to-peer Blockchain ecosystem
Although individuals need to produce the majority of the environment, Blockchain is an invaluable technology. Open marketplace, displaying the origin of food will create a platform where different producers can approach their customers. In an open marketplace, a level playing field is for small and medium producers to reach their customers.
Most of all know, in turn, customers are able to locate farmers and products that meet up with their needs. They are able to spend complete value for the product. Farmers could generate a practical lifestyle, that empowers them to stay on the farm.
Ann Maslova is a freelance writer and also journalist from Russian Federation residing in Spain, keen on modern-day technologies, interpersonal issues and also choices to follow a proper existence among them. After the increase of Blockchain and cryptocurrencies in past several years, she got enthusiastic about this topic.