Blockchain in Agriculture to Ensure Trust, Effectiveness, and Traceability from Farm Fields to Groceries
Abstract
:1. Introduction
1.1. Identification of the Research Gap
1.2. Definition of the Objective of the Research
1.3. Methodology Applied
1.4. Contribution Accomplished
2. Research Contributions
2.1. Literature Review
2.2. Framework Development
2.3. Future Research Directions
3. BCT: An Overview
3.1. Types of Nodes in Blockchain
3.1.1. Normal Nodes
3.1.2. Miner Nodes
3.2. Basic Elements of a Blockchain Network
3.2.1. Nodes
3.2.2. Consensus
3.2.3. Smart Contract
3.3. Block Structure in Blockchain
- Time stamp: It is used to define and track the period of formation and update of each block to maintain the integrity of the block.
- N-bits: These bits are used to define the marked threshold value of the hash code of the validated and authorized block.
- Block Version: This is a 4-byte value used to have knowledge about the consensus mechanism currently used.
- Nonce: This is a 4-byte number used only once for a valid block.
- Markle Tree: It forms a structure that looks like a binary tree to minimize the hash of transactions associated with it, and it does not break the hash of the transaction to reduce the storage data.
- Parent block Hash: This value is 256 bits and is used as an address of the previous block. This hash value is responsible for making a connection between the blocks.
3.4. Working of Blockchain
- Step 1: In the first step, the address of the payee is generated, which is further used by the payer to make a payment. After the completion of the payment, the transaction is accepted by both parties (i.e., payee and payer) and broadcasted to every node or peer existing in the network.
- Step 2: The broadcasted transaction is further authorized and validated by Nodes or participants to be collected in the block. Then, cryptocurrency is rewarded to these nodes for the proof-of-work. All the nodes collect the transaction data in the block for a period of time and work hard to add the block to the current blockchain.
- Step 3: After the uploading of the new block with the current chain, the information will be broadcast to all the other nodes or participants existing in the network. Then, they receive the block, and the nodes verify all the transaction records held by that block to maintain data integrity. The participant accepts this block by using its hash value for the creation of the next block.
4. Research Methodology
5. Literature Review
6. Application Areas
6.1. Application Area 1: Production of Crops and Foods
6.2. Application Area 2: Food Supply Chain
6.3. Application Area 3: Farmers Should Be Paid More Fairly
7. Proposed Framework
7.1. Framework for Application Area 1: Production of Crops and Foods
7.1.1. Step 1: Internet of Things Devices Generate Data
- In the building of a system to monitor an agricultural field, sensors play an important role as part of the construction process (soil moisture, temperature, humidity, pH, light, etc.).
- The data generated by sensors and other devices linked to the Internet of Things (IoT) may provide farmers with valuable information that can aid them in making educated decisions on the growth of their crops.
- The information that is collected from Internet of Things devices must be organized before it can be saved into a data storage device.
7.1.2. Step 2: Cleansing and Enhancement of the Data That Has Been Gathered
7.1.3. Step 3: Machine Learning Algorithms Are Being Used to Make the Data More Informative
- Commendations for Optimal Harvest Quality
- Identification of the Harvest
- Predictions of Harvest Yield
- Predictions of Harvest Demand
7.1.4. Step 4: The Blockchain Is Used to Store Information
7.2. Framework for Application Area 2: Food Supply Chain
- Information from farm origination;
- Information from transportation;
- Information about batch numbers;
- Information about food processing;
- Information from factory;
- Information from expiry.
- Reducing fraudulent food issues;
- Removing mislabeled food;
- Removing intermediaries from the process;
- Ensuring food producers get paid on time;
- Allowing consumers to understand what they are paying for;
- Recording and updating the status of crops by the farmer;
- Tracking farmers through the process of planting, harvesting, and delivery.
7.3. Framework for Application Area 3: Farmers Should Be Paid More Fairly
7.3.1. Key Components of the System
- Smart contracts: Self-executing contracts that are kept on the blockchain are known as smart contracts. They may be used to guarantee that each party is treated equally and to automate transactions.
- Cooperatives for agriculture: Cooperatives for agriculture are associations of farmers that collaborate to increase their negotiating position and resource availability.
- Financial institutions: Farmers may be able to get loans and other financial services from financial institutions.
- Technology suppliers: These companies are able to provide the assistance and infrastructure required for the setup and upkeep of the blockchain network.
7.3.2. The System Works as Follows
- For every crop they plant, farmers who join an agricultural cooperative establish a smart contract.
- The price, quantity, and delivery date are among the conditions of the sale that are specified in the smart contract.
- Members of the agricultural cooperative get e-wallets.
- E-wallets are distributed by financial institutions to processors, distributors, merchants, and end users.
- The agreed-upon sum is deposited into the farmer’s electronic wallet by the processor once the farmer sells their harvest to them.
- After that, the harvest is immediately released to the processor via the smart contract.
- After that, the crop is sold by the processor to a distributor, who then sells it to a retailer.
- The smart contract automatically delivers the money to the preceding party at each stage of the supply chain when the current party has completed their duties.
- The customer uses their e-wallet to make the payment when the vendor sells them the produce.
7.3.3. Advantages over Traditional Payment Systems
- Transparency: The blockchain is a public ledger that contains records of every transaction. This facilitates the tracking of money and product transfers across the supply chain.
- Security: The blockchain technology is quite safe. Since all of the data are encrypted and kept in several places, they are incredibly impossible to hack or alter.
- Efficiency: Many of the laborious processes required in conventional payment methods may be automated by the blockchain technology. All parties concerned may save money and time by doing this.
- Fairness: All participants to a transaction are guaranteed to be treated equally by the smart contracts. The contracts are automatically executed as soon as the predetermined criteria are satisfied and cannot be altered or interfered with.
7.4. Shortcomings Addressed with the Help of the Proposed Framework
8. Discussion
8.1. Impact of Blockchain Technology on Performance Matrices
- Throughput: By improving the effectiveness of transaction processing, blockchain technology, with its decentralized and distributed ledger design, may favorably improve throughput. Consensus mechanisms and the removal of middlemen facilitate quicker and more efficient data transfers, which raises the agricultural supply chain’s total throughput.
- Latency: By offering an open and unchangeable record of data, the use of blockchain technology may lower transaction latency. Smart contracts, a crucial component of blockchain technology, allow for the automatic and immediate execution of predetermined actions, reducing processing times and enhancing system responsiveness.
- Cost: The agricultural supply chain might see cost optimization thanks to blockchain technology. Operational expenses may be greatly decreased by doing away with the need for middlemen, automating record-keeping, and increasing automation thanks to smart contracts. This may result in agricultural practices that are more economical and resource-efficient.
- Scalability: The decentralized structure of blockchain enables better scalability in the agricultural industry. The need for supply chain solutions that are transparent and traceable is growing, and blockchain technology can readily expand to handle higher transaction volumes without sacrificing performance. The technology’s capacity to scale guarantees that it can be adjusted to the ever-changing needs of the agricultural sector.
- Security: Cryptographic encryption and consensus procedures, two of blockchain’s built-in security features, make the agricultural supply chain more secure. Data integrity is guaranteed by the blockchain’s immutability, and the decentralized structure lessens the possibility of a single point of failure. The agricultural ecosystem is more resilient to fraud, manipulation, and unauthorized access thanks to this increased protection.
- Trust: The improvement of trust is perhaps one of blockchain’s most important effects on agriculture. A product’s validity and provenance may be confirmed by stakeholders across the supply chain using transparent unchangeable ledgers. In the end, this openness benefits both producers and consumers by fostering confidence among participants and resolving issues with food safety, authenticity, and ethical sourcing.
8.2. Technical Considerations
- Interoperability: Smooth interoperability between various blockchain systems is necessary due to the varied stakeholder profiles in the agricultural supply chain. Technical factors should take into account how well different systems work together, making it possible for data and transactions to be effectively shared and comprehended across the ecosystem.
- Data Standards: For blockchain technology to be used in agriculture successfully, consistent data standards must be established. All participants can accurately read the information stored on the blockchain thanks to consistency in data formats, structures, and coding rules. In order to create a consistent and unified system, this factor becomes crucial.
- Integration with Current Systems: A wide range of current databases, technology, and systems are necessary for agriculture. One technological obstacle that has to be overcome is the seamless integration of blockchain with these older systems. For a seamless transition to blockchain solutions, existing agricultural technology must be compatible and work well together.
- Scalability: Making sure blockchain solutions are scalable is essential since the agricultural supply chain includes a large number of transactions and data. When developing systems, technical considerations should be directed towards creating solutions that can meet the increasing needs of the agricultural sector without sacrificing functionality.
8.3. Need for Standardization
- Uniform Protocols: The smooth cooperation of many stakeholders in agriculture is hampered by the lack of established protocols. Creating consistent standards for the use of blockchain technology guarantees that all parties function under the same framework, promoting consistency, interoperability, and confidence.
- Regulatory Compliance: There are a number of regulations that apply to the agricultural industry. To guarantee that blockchain solutions follow these rules and enable compliance and legal recognition, standardization is required. The navigation of regulatory environments with more clarity and assurance is made easier by using a standardized strategy.
- Data Security and Privacy: Ensuring a consistent level of data security and privacy across the agricultural supply chain requires standardization. Defined standards may include data ownership, access restrictions, and encryption techniques, guaranteeing that private agricultural data are always safeguarded.
- Smart Contract Standards: Standardized coding techniques are required for the use of smart contracts in agriculture. Having a standardized set of smart contract requirements improves their auditability, security, and dependability, which raises the overall efficacy of blockchain-based solutions.
8.4. Potential Regulatory Challenges
- Data Access and Control: Regulators that tackle issues with data access and control may find it easier to impose laws. It becomes essential to strike a balance between promoting openness and safeguarding confidential information since agricultural data are sensitive. Finding this balance needs thought and attention in order to keep blockchain’s benefits for traceability and trust intact.
- Legitimacy of Smart Contracts: The use of smart contracts in agricultural operations presents a new regulatory obstacle. Legislative adaptation may be necessary to determine the legal validity and enforceability of smart contracts, particularly in areas with strict contract rules. To ensure that smart contracts are enforceable under the law, governments may need to set up frameworks that acknowledge the validity of contracts carried out via blockchain.
- Interoperability Standards: As the use of blockchain technology spreads, interoperability may be hampered by the absence of uniform legal frameworks in many countries. The establishment of international standards that guarantee compliance with various regulatory contexts and enable the smooth integration of blockchain technology into the global agricultural supply chain may provide a challenge to governments.
- Protection of consumers: Ensuring the security and legitimacy of agricultural goods is a major factor in the deployment of blockchain technology. Governments, nonetheless, need to create laws to protect the interests of consumers. In order to solve issues with misleading claims or misleading information, this entails establishing standards for labelling, certification, and quality assurance inside the blockchain.
- Environmental Impact: Blockchain networks’ energy usage, particularly for those that use proof-of-work consensus processes, has sparked worries about the environment. Governments may try to control how blockchain technology affects the environment in agriculture. This might have an influence on the consensus algorithms used and encourage the creation of blockchain solutions that are environmentally benign.
8.5. Potential Applications of the Proposed Framework
8.6. Contrasting Viewpoints
9. Drawbacks to the Use of Blockchain in Agriculture
10. Limitations and Implications of Research
10.1. Limitations of This Research
10.2. Managerial Implications
10.3. Theoretical Implications
11. Future Scope
12. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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Authors | Abstract Summary | Year | Main Findings | Outcomes Measured |
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G. da S. R. Rocha et al. [2] | The investigation into the possibilities of BCT in the agricultural sector is just getting started. | 2021 |
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Wei Liu et al. [7] | ICT (Information and Communication Technology) methods are employed increasingly for manufacturing improvement. | 2021 |
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S. S. Kamble et al. [9] | The visibility of the supply chain and the resources available within the supply chain are the major driving power behind the development of data analysis. | 2019 |
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Y. Wang et al. [16] | Technologies based on blockchain have the potential to cause disruptions in the provisioning of traditional supply chains. | 2019 |
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M. Kouhizadeh et al. [17] | Academics and industry professionals agree that the supply chain and technology constraints are the most important obstacles. | 2021 |
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V. Varriale et al. [21] | The use of BCT results in an increase in both a company’s profitability and its reputation. | 2020 |
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M. P. Kramer et al. [23] | The selection of a particular BCT platform type is one of the most important factors that will determine the level of commercial success achieved by the planned use case. | 2021 |
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O. Bermeo-Almeida et al. [24] | The use of BCT is increasing both the speed and reliability of financial transactions. | 2018 |
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C. Bux et al. [28] | The use of BCT has become a fascinating tool for improving the reliability and traceability of Halal meals. | 2022 |
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R. L. Rana et al. [29] | The use of BCT, also known as BCT, together with the Internet of Things makes agri-food production more environmentally friendly. | 2021 |
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J. Al-Jaroodi et al. [30] | The use of technology based on blockchain provides a wide variety of applications in the industrial sector by increasing both efficiency and security. | 2019 |
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B. Esmaeilian et al. [31] | The creation of incentive systems and tokenization that encourage environmentally responsible behavior on the part of consumers may lead to an increase in sustainability. | 2020 |
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Y. Zheng et al. [32] | The implementation of blockchain technology in agriculture is examined in this article, with a particular emphasis on farmers, processors, and governments. It recommends that in order to enhance brand image and reap advantages, producers and processors should control the costs associated with traceability, and that the government should incentivize agents to participate by enacting a system of rewards and penalties. | 2023 | Maintaining agricultural commodities’ safety and quality requires blockchain-based traceability, and controlling traceability expenses is critical for producers and processors looking to enhance their reputation and reap additional rewards. Incentives and punishments are also required to accelerate the deployment of blockchain traceability. | decision-making behavior of the main participants in the blockchain traceability of agricultural products |
G. da S. R. Rocha et al. [33] | The paper evaluates blockchain’s pros, cons, obstacles, and prospects in agriculture. Blockchain technology enhances governance and information flow, but eliminating middlemen and high implementation costs are drawbacks. Lack of a popular platform is rising. Opportunities for blockchain integration with new technologies and competitiveness are emerging. | 2023 | The advantages and prospects linked with the use of blockchain technology in the agricultural industry surpass the obstacles and drawbacks, signifying the growing significance of blockchain technology in this domain. | Expert evaluation of the perceived significance of the advantages, drawbacks, difficulties, and prospects of blockchain applications in agriculture using a Likert scale questionnaire |
G. K. Akella et al. [34] | This comprehensive analysis looks at the factors that encourage and hinder blockchain use in intelligent and sustainable agriculture. Adoption is hampered by constraints including a lack of international standards and industry best practices, while major facilitators like stakeholder engagement and the development of consumer trust are identified. | 2023 | Stakeholder cooperation, shared responsibility, consumer value, quality of service, trust, sustainable supply chains and value chains, democratization, and data usability allow blockchain technology adoption. Key results include lack of government legislation, resource capital needs, security and privacy concerns, lack of standards, trust, scalability challenges, knowledge, and simplicity of use as hurdles to blockchain technology adoption in smart and sustainable agriculture. The research emphasizes analyzing blockchain technology adoption hurdles and enablers for smart and sustainable agriculture. | Barriers and enablers of blockchain technology adoption for smart and sustainable agriculture |
S. Padhy et al. [35] | This research combines software-defined networking, fog computing, and blockchain technologies on an open-source Internet of Things platform to provide a secure architectural framework for agriculture 4.0. The system holds up effectively against DDoS assaults. | 2023 | With the effective use of natural resources, smart agriculture technology may improve farming practices and raise production. For Agriculture 4.0 to create safe and scalable systems, the right security mechanism is needed. The suggested security architecture has worked effectively, integrating fog computing, software-defined networking, and blockchain technology. | Production volume, production quality, agricultural techniques’ efficacy, and resource use, optimal cultivation costs, cutting down on waste, sustainable in terms of the environment, Making the Most of Your Time |
A. Adimabua Ojugo et al. [36] | It is possible for the framework to immediately access and obtain data without having to go through the whole ledger. | 2023 | The suggestion of a trace-support system based on blockchain technology to guarantee food quality, consumer security, and food asset trade. The model’s fast response times for https sites and queries, averaging 1101 transactions per second. Historical data on all beef produced, delivered, purchased, and eaten throughout the chain is provided by the framework. | Tracer management model performance metrics based on blockchain, such as transaction throughput and application response time |
M. Fiore et al. [37] | An area of study that needs to be addressed is the deficiency of training for both industry and stakeholders. | 2023 | Blockchain technology may streamline food supply chain tracking, enhancing efficiency, safety, and customer confidence. It may build food product digital identities to help customers make educated selections and monitor sustainable and ethical manufacturing. | enhanced customer confidence and producer visibility in the agri-food supply chain via the use of blockchain-based traceability solutions |
E. P. Kechagias et al. [38] | As a possible option for increasing traceability, a distributed application for table olives’ traceability on the Ethereum network has garnered a substantial amount of interest. | 2023 | The use of blockchain technology in the food supply chain has greatly enhanced the traceability of products, reduced processing times, increased data accuracy and dependability, enhanced supply chain efficiency, and assisted producers in adhering to global norms and laws. | improvement of traceability in the food supply chain |
M. srikanth et al. [39] | Smallholder farmers may control demand and supply with P2P blockchain technology. Installing auction algorithms in a hybrid peer-to-peer system for smallholder farmers, government crop forecast and smallholder farmer advice, estimating crop growth and managing demand and supply. | 2023 | The findings imply that the paper’s main focus is on how blockchain technology—specifically P2P and PoA—may assist smallholder farmers in managing supply and demand, as well as how auction algorithms can be used in this setting. | Blockchain technology and machine learning can help agribusiness companies make better supply and demand projections. |
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Panwar, A.; Khari, M.; Misra, S.; Sugandh, U. Blockchain in Agriculture to Ensure Trust, Effectiveness, and Traceability from Farm Fields to Groceries. Future Internet 2023, 15, 404. https://doi.org/10.3390/fi15120404
Panwar A, Khari M, Misra S, Sugandh U. Blockchain in Agriculture to Ensure Trust, Effectiveness, and Traceability from Farm Fields to Groceries. Future Internet. 2023; 15(12):404. https://doi.org/10.3390/fi15120404
Chicago/Turabian StylePanwar, Arvind, Manju Khari, Sanjay Misra, and Urvashi Sugandh. 2023. "Blockchain in Agriculture to Ensure Trust, Effectiveness, and Traceability from Farm Fields to Groceries" Future Internet 15, no. 12: 404. https://doi.org/10.3390/fi15120404
APA StylePanwar, A., Khari, M., Misra, S., & Sugandh, U. (2023). Blockchain in Agriculture to Ensure Trust, Effectiveness, and Traceability from Farm Fields to Groceries. Future Internet, 15(12), 404. https://doi.org/10.3390/fi15120404