What Blockchain Technology Has for The Food & Beverages Industry?
TechnologyBit News Today2 min read
Operating as a distributed ledger that shares data in an unalterable and non-repudiable way, blockchain can enhance trust and transparency across the food sector. As a distributed ledger technology (DLT) shared between independent computers, blockchain holds time-stamped data, that cannot be altered from the point of transaction without the consensus of all parties in the supply chain.
This makes blockchain technology a good fit for the food supply industry, providing a transparent, single version of truth for all its complex players. Additionally, since each block has a unique cryptographic fingerprint that each computer in the network agrees on, it renders blockchain practically tamper-proof.
EU Automation marketing director Jonathan Wilkins explains that blockchain's unalterable, peer-to-peer recordkeeping can reduce supply chain paperwork by turning important papers into automated files. It allows manufacturers to transform documents, such as legal papers, into automated files, which are shared without delays or losses between companies.
Accelerating Traceability and Food Outbreak Response
One of the key applications of blockchain in the food and beverage industry is enhancing food safety and traceability. The application of blockchain to food and beverage supply chains originally began when IBM and Walmart partnered to improve track-and-trace capabilities. In a proof of concept study, blockchain reduced the tracing of mangoes, from store to farm, from almost seven days to 2.2 seconds.
The technology also helps improve consumer transparency. Shoppers can scan a product's QR code to review information about its production process and submit feedback.
Integrating IoT Sensors and Consumer Verification
In addition to making the supply chain more transparent, blockchain can also be integrated with other technological solutions such as the Internet of Things (IoT), says industry experts. By shipping goods with IIoT tracking sensors, companies can log location, temperature, humidity, and quality data onto a blockchain along the supply chain.
When paired with these technologies, blockchain can further enhance the food industry's operational efficiency. At Naturipe Farms in Chile, harvesters work with SAP to place QR codes on crates of collected berries. When a customer buys a fruit, they can scan the QR code to gain access to information, such as where berries were grown and sustainability practices from the farm.
Operational Advantages and Key Adoption Challenges
While the benefits of blockchain are clear, it may be a while before the food supply chain industry will be fully adopting the new technology. Jonathan Wilkins of EU Automation points out that the main challenge is verifying the reliability of initial data entered into the blockchain, while a lack of industry standards also hampers integration into a unified regulatory framework.
To make blockchain more accessible, firms like Omnichain are providing companies with easy integrations with their existing supply chain and network systems. In 2018 about 5% of the supply chain industry has used the capabilities of blockchain with the number forecasted to reach 54% in the next five years, according to Omnichain.
