The fame that the technology behind cryptocurrencies has gained over a short period is remarkably astounding. The cryptography based platform ensures that data, once entered into the network, cannot be manipulated at any cost, which is why the whole world is following a new technology like never before.
After attaining enough prominence for Bitcoins, the decentralized and immutable features of blockchain have made it a topic of interest across various industries such as banking and finance, healthcare, supply chain, e-governance, food, retail, healthcare, and agriculture as well. Many public as well as private organisations have already adopted blockchain technology to develop advanced business models for their processes, and harness the uncompromising features like security, transparency, and fault tolerance.
Several projects have been successfully launched on blockchain, and many ongoing projects are underway too. However, recent initiatives in the agricultural sector demonstrate the impact that blockchain can have on agriculture in the coming years. Here are a few benefits and challenges listed to inspire all blockchain enthusiasts. Check them out:
Benefits of Blockchain in Agriculture:
Blockchain technology has great potential in the agriculture sector. It offers many benefits that enhance the complete agricultural ecosystem. It offers:
- A secure way to carry out transactions within trusted parties
- Improved traceability by connecting suppliers, producers and buyers on an immutable network
- Facilitates the tracking of finance and insurance transactions by farmers
- Tracing the supply chain of food produce on a trusted network
Challenges of Blockchain in Agriculture:
In spite of all benefits that blockchain boasts about, there are various barriers and challenges too, which prevent the widespread adoption of the technology. A few to list include:
- Investing in blockchain like technology is yet an expensive burden for small and medium-sized businesses
- People need to be educated about the nascent technology to boost its adoption
- There is still a lack of awareness about decentralization and the benefits it offers
- Government regulations are yet to be formed in different countries to allow the adoption on large scale
- A trusted consensus among the policymakers and industry experts is still lacking
- People need to be trained on how to carry out transactions both on public and private blockchain networks
Though there are a few challenges that are yet to be addressed, many individuals and governments have already come forward and embraced the technology to prove its benefits. It is hopeful that blockchain will revolutionize the agricultural sector and take it to the next level.