Top Advantages Of Blockchain Technology For Food Industry
Many companies in the global supply chains, banking & financial services, healthcare & hospital automation services, government sectors, and a number of other industries, innovators are exploring new methods to make full uses of blockchain technology.
Many best blockchain development companies in USA are using this advanced record-keeping technology to transform traditional business models on digital platforms.
Many industry leaders have achieved success and significant business benefits from blockchain. Transparency, speed of transactions, enhanced security, increased efficiency, and improved traceability at reduced costs are this technology’s top advantages.
As a result, the blockchain technology development is now being used in the food and beverage industry. Over the past few months, a variety of players like Wallmart, Nestle, Starbucks, Carrefour, Scotch Whisky, and other top brands have reported using blockchain.
“According to some research reports, 20% of the top grocers in the food industries’ will use blockchain by 2025.”
The food industry has many intermediate players and handlers to distribute food to the consumers. As a result, the food industry faces challenges in food security, food scarcity, food safety, and many health concerns.
To fight back these challenges, blockchain technology in food industry can be very useful!
In this article, we are going to put out the use cases and advantages of blockchain for the food industry. But before that let’s know what is the meaning of blockchain and how it works?
What Is Blockchain and How It Works?
A blockchain is digitalized and dispersed spreadsheet whose job is to record all the transactions. Also, the blockchain technology tracks tangible and intangible assets.
In a business, assets are distributed worldwide, a single person cannot control or track them. When someone uploads a transaction, the system runs complex algorithms in the network to check if the transactions are valid or not.
Each transaction is stored in a block (data block), and each block is linked with one another. This leads to the formation of blockchain. This process begins for every new block!
Several computers or nodes implement a variety of algorithms for analyzing the authenticity of each transaction. If the transactions are authentic, then it is accepted in the ledger. Thus, a new block adds to the existing chain.
On the other hand, if a transaction is found unauthentic, it is never added to the blockchain. This is how the blockchain technology development takes place.
There exist many versatile uses for blockchain technology. Each use has its motto and advantage. Today, you can find many blockchain technology applications in various industries.
The food industry is the newest user of this technology. There is much food ordering mobile app companies in USA that use blockchain and develop secure mobile apps for restaurants, food-related online solutions.
Benefits Of Blockchain Technology In The Food Industry
Blockchain technology applications in the food industry can change the potential ways we buy, sell, and make transactions. As a result, mediators or intermediates would get less chance to collect more money from the farmers.
This new technology uses cryptographic security measures and can be used in exchanging contracts and agreements to track payments.
Some of the tech companies are applying blockchain for the food industry in the context of food safety and supply chain management. Blockchain is rapidly growing in the alcohol and beverage industry.
“A premium scotch whiskey brand named Ailsa Bay released the world’s first scotch whisky that is trackable with a blockchain-based system.”
You must be not knowing this, but China’s food and beverage industry earned a whopping amount of 4.27 trillion yuan in 2018 and became the largest food industry in the world.
In order to manage such a big industry and trillion powered economy, China has shown its interest in the blockchain. With blockchain, China aims to strengthen food and drug quality.
In China, Walmart is also in the race of implementing blockchain!
The growing popularity of blockchain technology in the food industry can be credited to its - transparency, traceability, and tamper resistance. Also, it establishes trust among farmers, consumers, suppliers, and retailers!
Furthermore, blockchain makes the complete process transparent, ensure fast & fair payments, and prevent fraud from happening.
Many mobile apps for restaurants based on blockchain technology applications are being made by some of the top blockchain technology services providers in USA.
Blockchain is certainly a top pick among many IT & Software development companies because of its following advantages.
Advantages Of Blockchain In Food Industry
- Blockchain empowers transparency, make the food supply chain more robust and aware such that the industry can cope up with food safety issues. Due to this nature of blockchain, big organizations like Unilever and Nestle have started employing blockchain technology to trace the origins of products. How authentic is blockchain would be known later! Keep Nestle and Unilever in your mind.
- It prevents fraud if the data collected is error-free. Collected data in a blockchain isn’t vulnerable to hacking, bugs, errors, and inaccuracies. Also, blockchain helps in identifying the culprit. For example, blockchain technology development would have prevented Canada’s food fraud in 2016.
- Blockchain also speeds up the payment process. However, its biggest importance is in assisting farmers because blockchain guarantees more value and better selling chances to them directly to the consumers. According to Forbes, blockchain has got guts to ‘Uberize’ the agri-food industry just by reducing transaction fees and intermediaries.
- Furthermore, the blockchain technology prevents price coercion, as well as it entirely eliminates intermediaries so that the food producers can reap better and significant economic benefits.
- Lastly, food wastage is a notable problem on our planet. According to the United Nations’ Food and Agriculture Organization, “Around 1.3 billion tonnes of food produced in the world goes into the dustbin.” To prevent this extra food waste, this technology can become beneficial by regulating the process of transaction and data collection in a fair way for the benefit of tens and thousands of families struggling with hunger and malnutrition.
All these issues are answerable with proper tracking and monitoring with blockchain. Not only this technology can help in food security and food safety but it can sustain the environment in a more friendly manner.
Hence, if you are also looking to implement this data-based technology in your business, then you can contact Zrix - A leading blockchain development company in USA!
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