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Smart Contract For Food Production

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Farming is considered one of the most important occupation in today’s world. Farmers are frequently not able to sell their items directly to the buyers and must go through the selling process from the wholesaler or merchants who purchase their crops or products at a cheaper rate and sell it to the buyers at higher rate. The curiosity for Blockchain Technology is continuously subsiding into individuals’ lives, making it basic to comprehend its applications and impediments. Through this project, we will examine how Blockchain can improve the business in food industries [1].

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Our present food supply chain offers a rich chance to investigate how the Blockchain innovation can associate with our food environment including both human and natural resources to improve our lives. Luckily, various new businesses ventures are working diligently these days on this field of technology to make our lives better [1].

Food production or manufacturing begins at the farms or food industries. There are many occupational hazards associated with farming such as bad climatic conditions, poor quality of crop production, usage of harmful chemical fertilizers, machinery breakdown and so forth that influences the production in farms. Economic situations and vast horticultural enterprises can likewise make the lives of our farmers a bit challenging. The food industries frequently take advantage of the situation by utilizing costly composts and GMO-seeds which are patented to get an upper hands over small food producing firms [1]. Although the farmers can overcome these challenges if they understand the technology that could be beneficial to them by taking proper advises from the experts working in this technical field.

Food and our eating habits play a vital role in agricultural business. The quality and quantity of food we eat decides the well-being of the body but when it is low quality, it could be associated with continuous illness, for example, coronary illness, liver harm, stroke, diabetes and tumor, to give some examples. We can lower down the chronic problems by enhancing the quality of food which is available in the market. Before we talk about enhancing the quality of food, we require a solution to the frequently asked question: Why do we eat food which is low in quality [1]? This is a huge issue that can be isolated in three things: Production, Delivery and Sales. Big food organizations inexpensively produce food in bulk and sell it to the distributors, due to different eating habits of different individuals they not able to consume it completely. The outcome of these issues is creating another issue for us that is wastage of food and disposing it. There are lot of resources that are used in food production to meet the needs of the people, but the food which is never eaten will be a complete waste [1]. Since the food made available in market has to come from different stages of the supply chain and it Is possible that that the quality of food could be degraded if not stored properly. Another issue with low food quality is in the poor co-ordinations of delivery of the food produced. Present day agri-business is under the attack of big chains’ producers-dealer-buyer model. Huge scale food manufacturers regularly try to sort out factory food production for developing nations. At that point they try to make big network to sell food worldwide but compromise on quality [1].

To find a practical solution of the problem, we need to take necessary steps to advance ourselves with technical knowledge. Luckily, wellbeing, eating, cultivating, horticulture and co-ordinations are interrelated, which is no rocket science and it will be easier to look up for solutions. All we need is people that have required knowledge and skills to help us overcome these difficulties by sharing their thoughts on blockchain technology and how it could be linked with the supply chain structure.

After the launch of Ethereum and bitcoins, alternative coins turned into a prevalent method to feature thoughts for new digital forms of money. We are as of now in a time of advancement, where numerous engineers are proposing several plans to take care of either nonexistent or ordinary issues. It’s imperative that society and techies make it a priority to applying Blockchain to pertinent and vital issues, as opposed to expecting Blockchain innovation to fit around everything universally [1].

If a question arises in our mind about using Blockchain technology as a Financial Tool? then the answer will be “yes, we can”. Blockchain technology could offers us great financial services to give agriculturists a convenient and easy way to get paid for their food production. By utilizing these innovations, it will help us evade any middlemen problem and make the farmer’s life comfortable. With proper defined contract between the farmer and the customer, the farmers would be able to get payment in full or installments without any pressure from third party. Since getting paid in agri-business is complicated, it would solve a big problem for both parties. The customers could get the product at a cheaper rate compared to the market. Besides that it will be more secure and transparent while making the payment.

To give a simple example, A farmer creates a network on blockchain technology and associates with other farmers for food production. They will sign a smart contract where the customer who is running a restaurant would pay the farmer in advance say $500 to supply the specific type veggies for 20 weeks and was paid at the start of autumn. Here the payment will be transparent and will be equally divided amongst the other farmer in the network. It will be economical for both the parties connected on the network and it would eliminate other middlemen involved in the supply chain structure.

Related Work

One of the main ranchers who executed Blockchain as a money related instrument to build up his economy was Mikhail Shlyapnikov, an agriculturist from Russia. He presented his own cryptographic money for his homestead.

We can simplify the delivery process through smart contracts which can incorporate any conditions and any number of people without including legal advisors. For instance, the proprietor of a small bistro can buy espresso seeds from a Kenyan agriculturist in a straight forward process [1]. At the same time, he or she can arrange for the conveyance to Europe, pay for work of the distributor and for confirmation by the customs as indicated by the laws of the nation. Smart contracts will free farmers from the long chains of middlemen and consequently bring down the end cost of the item for the customer [1].

Source, quality and confirmation are the specific things we look out in blockchain. Executing Blockchain in the food production and its processing steps makes things transparent and enables buyers to help distributors keep things simple with the customers. It is especially significant for natural and certified food items [1].

According to Marcel Blankenstein, proprietor of Naked Organics, “Blockchain in horticulture enables the purchaser to filter the standardized identification of an item in the store and immediately view the whole food supply chain from grocery store to agriculturist. From an administrative point of view, bad quality food items can be immediately separated.”[1]

According to Liz Reitzig, the founder of Nourishing Liberty, “The greatest test for agriculturists in utilizing Blockchain is in defeating its specialized comprehension. Farmers are centered around cultivating. They are not on the front line of innovation.”[1]

Advancement of Blockchain must be easy to comprehend and utilize. Various new businesses have been working in this space. One such organization has built up a whole stage to influence Blockchain to usage easier for agriculturalists. They have combined all the Blockchain capacities associated with food production and cultivation [1].

Gregory Arzumanian, co-owner of 1000Ecofarms, believes that we have tried to become skilled with every opportunity that Blockchain innovations can help with. At the point when the Blockchain innovations are substantial and reasonable, we can apply them even to the basic food production for humans. The main target is to make a worldwide, safe biological system for natural food production and food industries that would enable them to altogether decrease the costs identified with the production of food and its safe delivery.”[1]

Blockchain advancements can lighten up burden on some technical issues and improve the farmer’s life, and our overall health and wellbeing [1].

Tracking the food is not equivalent to great cultivating strategies and good quality food is not equivalent to good health.

Luckily, we see present day cultivating techniques moving rapidly towards manageability. Natural food straight from the farms is becoming popular these days aLnd it will available to people at a cheaper price, which implies that farmer with small farms will be able to make more money if they sell their goods to the customers directly [1].

Blockchain will certainly prove to be an asset if an opportunity is given for it to grow. Thus, when customers can find items and agriculturists who provide them with natural food as they desire, and can pay them fully for their item, then these farmers will be able to make a decent living and be motivated to do the work they adore [1].

Chapter 2

Technical Background

Blockchain technology makes sure to prevent spending again, with help of cryptographic mathematics. It contains public key and private key. Public key is available to everyone whoever wants to send something to the account. Private key is a secret key used only by the person owning the account and is not shared with others. [5]

Transaction takes place when the pubic key of one account is known by the account holder of another account who is going to send the cryptocurrency. The keys are generated with cryptographically involving complex math behind it [5].

Main difference in transaction between cryptocurrencies and flat currencies is that one is traceable, and the other is not. The identity of the owner of cryptocurrency is not revealed but it could be traced back to the original owner while the flat currency is not traceable, and the identity of the owner is easily revealed [5].

The only issue with online digital identification contains two closely related problems which are access control and personally identifiable information [5].

There is not only politics involved in centralization of digital identity but also a lot of legal and societal involvement [5].

In 2015, Voting system based on blockchain technology was launched which provided high level of transparency in process of voting.

Voting more example……

Block chain for banking/ finance more example…..[5]

Improving the transparency of Supply Chain globally is essential. Supply chain from producer to the customer is unclear and the only solution to this issue is that we bring more transparency in it and build better relations with the customers by active participation in verifying the product and payment [5].

Blockchain Technology provides us with a ground-breaking solution to most of the problems in our life that lacks transparency. A shared immutable ledger connected to a network would help us keep record of the initial stage in supply chain and last stage in supply chain which form the producers to the customers. There is a special identification process in blockchain technology that helps keep the record of goods possession by various parties [5].

According to research done across the world on smart contracts using blockchain technology, blockchain has the potential to revolutionize the nature of interface between economic agents [5]. We talked about the usage of smart contracts and blockchain technology, these applications range from voting apps to supply chain in food production. These technologies will highlight the contribution of the society and help in developing this world.

Despite these significant reservations, we believe that more block-chain decentralized application will emerge in the near future with more diversity same as art, tourism and sports. Since blockchain technology is in its initial stage, we should not under estimate the future prospects of this technology that promises socio-economic benefits [5].

Disclaimer: This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. You can order our professional work here.

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