Agricultural Supply Chain using Blockchain Technology

Abstract

In order to verify, execute, and record transactions between parties, block chains have become well-established as a digital system that integrates cryptography, data management, networking, and incentive mechanisms. Despite the fact that blockchain technology was first developed to underpin novel digital currencies for more convenient and secure payments, it currently shows enormous potential as a new basis for all types of trade. In particular, the agribusiness industry stands to gain a great deal from this technology as a platform to carry out'smart contracts' for transactions involving high-value crops. There has to be a clear delineation between private digital currencies and the underlying distributed ledger and block chain technology. The decentralised and global character of cryptocurrencies like Bitcoin makes it unlikely that central banks will be able to effectively regulate the underlying protocols of these systems. Instead of being able to monitor and manage the money itself, monetary authorities are concentrating on understanding the 'on-ramps' and 'off-ramps' that comprise the linkages to the old payments system. While the digital money aspect of block chain has little practical use, the distributed ledger feature may find significant application in farming and trade finance.