Blockchain Technology in Agriculture

Blockchain technology refers to the systems and processes utilised throughout a supply chain, to provide transparency, accountability, plus traceability of products and transactions. Many systems fall under the blockchain banner, across a range of products and supply chains. Blockchain technology is already being utilised by accounting firms, plus some financial institutions who utilise the processes through internal systems for lending criteria when assessing finance applications.

 Where blockchain technology underpins a database, several parties with access across a network can verify entries to the database, as opposed to a single administrator, helping to ensure complete transparency for all parties as to the accuracy of data. Once all parties agree that the information in the database is correct, a security “block” is placed over the encrypted data, meaning that none of the previous entries can be altered. Hacking or corruption of the database is also more difficult.

 It is envisaged that utilising blockchain technology in agricultural supply chains will improve quality and traceability of products, enhancing providence and ultimately consumer confidence.  

 Concerns relating to blockchain technology include:

·        Privatisation of agricultural databases and lack of access by producers

·        Breaches of encryption

·        Regulatory and training burdens on producers

·        The reliance on good quality initial data

It is likely that some level of government oversight will ultimately be required to ensure that ownership and control of supply chain data is appropriately shared along the chain.