Most of us are aware of how Cryptocurrency has a high chance of flourishing in the agricultural business. It can trace down all the important information of the food supply chain via the blockchain mechanism and it helps in cutting down agricultural transaction costs.
In this blog, we will together try to understand the functionality of Bitcoins in the agricultural industry and how it is beneficial to its peers.
Blockchain technology for Agriculture
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Blockchain has the capability of creating a significant impact in the process of agricultural business. It helps in finding out error-free data about the supply chain which often clears the air between the farmers and the consumers.
Here are some points as to how blockchains contribute towards the system contribute to the following:
With the emerging concept of zero waste and sustainable living, consumers are keen on knowing the origins and content of their food. The demand for organic produce, cruelty-free meat, and cruelty-free products is on the rise in the law of marginal utility.
Most consumers, liberal and sensible, are willing to be knowledgeable about the sources of the products they are buying from the market. Brand name trust is a low-key practice these days.
However, any producer can sell a mislabeled commodity and that creates a breach of the seller-buyer trust. Blockchains can record information that is then unalterable. Thus, a blockchain can give trustworthy information about the supply process of the food, from the farm to the plate with 100% accuracy.
Thus, while purchasing a product through cryptocurrency, the consumer then gets an idea about the farm his banana was produced from or from which garden the tea was picked with a single tap on the screen.
Also Read: The Future is Electric and Autonomous
Optimizing the supply chain:
Creating a bit of transparency in the food supply chain is the enormous brownie point Bitcoin has collected. The agricultural system is pretty complex and opaque as there are several layers and changes of hands/partys from producer to consumers.
Bitcoins can optimize the supply chain by providing regular spotless supply and demand information to the alleged participants. To know more about this, do consider taking a look at bitcoin eras!
Better price and easier payment options:
Since the system of agri-commerce is so complex, it takes a handful of days for farmers to receive their dues. Blockchain provides efficient peer-to-peer fund transfers for the benefit of the system. Its cuts are a lot of costly charges and taxes associated with the existing payout regulations.
Thus, a huge cut in cost is assured upon. Also, things happen almost instantaneously in a blockchain. So waiting time can also be reduced.
Will the farmers get money?
Farmers often receive a lot less than they deserve because of the cut-offs by the several layers of establishments in the system. Such systems are often not error-free and the tech-savvy crowd demands more transparent information.
For a cryptocurrency like Bitcoins to provide such spotless data to the concerned party opens a lot of doors for the farmers. The market will be blooming for products that can be studied. A lot of hidden costs are not generated because they are not required. Thus, the returns from one unit of production increase.
This results in speedy, flawless, and increased income for the farmer. Thus it is rightly said that Bitcoins can fill up a healthy plate in a farming household.
Future of Agriculture is Blockchain
It is believed that a few years down the line, bitcoins won’t be a buzzword. Due to its immense capability of accuracy, it is going to become as a regular subject as the Internet. Many others think that Bitcoins are overrated and that too many risks are involved with them.
Need of the hour is that blockchains and agro-tech need to gear up their game into viable and approachable business strategies for increasing the chances of an optimized supply chain.
In this blog, we tried to understand how cryptocurrency can bring about a change in the existing agriculture industry. Here’s hoping, you got to know a few things that can clear the air about this topic. We wish you the very best!