Saturday, January 25, 2020

Blockchain In Food Industry – A Quick Look At The Innovative Idea

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Blockchain is a term heard by most of us – thanks to the cryptocurrency, particularly, Bitcoin. However, the general perception about the blockchain is that of a technology related to fintech only. Nonetheless, little do we know that blockchain isn’t applicable only to fintech, but also bears great potential for improvising other niches as well. For instance, the use of blockchain in food industry can significantly help manufacturers in enhancing food safety and quality.

In this article, we take a quick look at how applying blockchain can improvise in food manufacturing and packaging.

What Is Blockchain Technology?

Blockchain is distributed immutable ledger that stores data in various ‘blocks’ that cryptographically link together. The chain or the network includes multiple nodes that validate the database since each of them has a copy of complete data. The chain grows when the nodes verify a transaction in the new block. This eventually prevents ‘double-spending’ (with regard to fintech), or, any deliberate change or alteration to the data. If a change is necessary, then it is only possible after altering all other blocks. After verification, the new block gets linked with the growing and seemingly never-ending chain.

Despite being somewhat complex, blockchain technology allows noteworthy accountability. Since the entire data ever written exists on the chain, it becomes quite easy for anyone to trace back any changes.

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In simple words, the technology involves numerous computers linked on a network, where each computer plays its role to verify a transaction. This offers transparency of data to every user on the network, and hence, better traceability with improved data security.

Benefits Of Using Blockchain In Food Industry

Though, blockchain seems quite unrelated to the food industry. However, the thing that makes it most relevant to this niche is its tremendous accountability.

One of the biggest problems the food industries are tackling is food wastage. From the production through the entire supply chain, numerous factors contribute to increasing food waste. Though, the industrialists are employing various means to reduce food waste. Yet, they have not been entirely successful yet owing to poor traceability.

This is where the blockchain can play its role. If the industries begin leveraging blockchain to improve food supply chain traceability, they can eventually identify the areas that cause wastage.

For better understanding, here we list some ways through which applying blockchain in food industry can help improve processes.

Blockchain And Food Security

Using blockchain in food industries can help prevent food recalls. Using this technology, not only the industries can identify food spoilage spots, but can also detect how an incident happened.

Since blockchain technology keeps a good record of processes with timestamps, one can easily trace back the exact events, from production to packaging, transportation, and delivery, with all related details such as the equipment involved, the vehicle, as well as the drivers’ details.

Likewise, food makers can also create separate blocks for food ingredients as well as for the storage at the warehouse.

Some of the companies employing food blockchain solutions include Nestle, Walmart, and Unilever.

Related: 5 Ways Food Processing Industries Can Reduce Food Waste

Fraud Prevention

Better traceability is the key to prevent frauds and fraudulent activities. The same applies to the food industry as well.

Whether it is about any adulteration, illegal activity, or fraud, blockchain can detect it all. Any food that does not meet the originality criteria will face ejection by the blockchain, even when the product is in the supply chain.

This will not only help the industries in identifying problem areas. Rather, it also saves the firms’ reputation by preventing recalls or minimizing the chances of complaints from the consumers’ end.

Transparency For The Consumers

The consumers of this era are much more health-conscious than ever before. They have better awareness about the health problems, ethical and moral issues arising from consuming wrong foods. That is why they demand transparency and availability of comprehensive details about the product they consume.

With blockchain, companies get a chance to establish themselves as credible brands among consumers. With the instant availability of precise details, such as ingredients, accurate dates of manufacturing and expiry, GMO/non-GMO labelling, the consumers can make better decisions about the choice of food.

Moreover, it also lets them realise the transparency of the manufacturers, which eventually builds their trust in the brand.

Wrapping It All

Using blockchain in food industry is an innovative idea that allows streamlining operations with better traceability. Through blockchain, not only the industries can reduce food waste, but can also win consumers’ trust. Though, the key players of the food industry have already adopted this technology for improving processes. Still, the technology awaits full exploitation of its potential. Perhaps, spreading awareness about blockchain among the industrialists can contribute to an increased adaptation of this technology for food safety.

Related: Breakthrough Technologies In Food Processing That We Look Up To In 2020

This article first appeared at: https://samuel-lison.blog/blockchain-in-food-industry-a-quick-look-at-the-innovative-idea/


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