From banking & financial services, healthcare & hospital automation services to government sectors and global supply chain, blockchain has been used by several industry verticals. Thanks to innovators who are exploring new ideas so that the technology can also be utilized with the food industry and others in much better ways.
Some of the top tech companies have already started using technology for the food system while others are trying to adopt such advanced and secure digital systems. Therefore, the demand for blockchain development and blockchain developers grew in the market.
And its use for a restaurant business is enhancing the development of food delivery apps and demand for Food Delivering app developers in the software development companies. Here in this block, we will discuss blockchain technology, its working and use for the food industry along with benefits and advantages.
What is Blockchain?
Blockchain technology can be defined as a decentralized distributed ledger that keeps records of all the transactions made in the network. Since the technology is distributed it is not owned or controlled by a single body like the centralised system where either the government or a brand has complete access over the transactional data.
In the blockchain distributed ledger each player in the network has its own copies of the records and can access the supply chain if they are allowed. All in all, blockchain technology is an open network that allows their members to access records of data whether they are actors, suppliers and customers.
How Does Blockchain Perform?
In the blockchain technology, each participant has their own copies which allow management of their own chain. In case, any node is compromised at security level each actor on the chain will be able to notice the change and act accordingly.
It is the benefit of a blockchain system that enables visibility of data at many places as opposed to a central system that is regulated by one body.
If such an attack or manipulation takes place it could easily be noticed from the other members of the network that A has been changed to B.
If we talk about Bitcoin, it is a cryptocurrency that works on the same Blockchain technology. Still, there is a difference between both of them. People use it to buy bitcoins across the world and view associated data. It means there is sharing visibility and transparency but with blockchain, it is not the case. In the blockchain, transparency is only for those who have joined the network.
So when you join the network you sign a contract that gives you the right of seeing data allowed to see within the group. The general public won’t be able to see the data since it is open and transparent but not like Bitcoin that everyone can access it globally. Therefore, signing a contract is important to access a blockchain and its data in the network.
Why is Blockchain Useful in the Food Industry?
Blockchain is useful in the food industry as like the blockchain, the food system in itself a chain or a set of linked chains. The chain consists of several actors like suppliers who provide food, aggregators and retailers and people making the final move of selling food in the market, a part of the supply chain.
Blockchain as the name refers designed to support handling of a chain of actions and consequential transactions. However, it is not like it won’t encounter any issue. Blockchain is extremely secure that it became a major choice and verticals like the food industry enjoy its benefits in maintaining the supply chain of the food system.
Benefits of Blockchain Technology in the Food Industry
1. The adoption of blockchain technology can easily change the conventional ways of doing business (buy, sell and make transactions). It eliminates the chances of fraud and making more money from the farmers by the mediators or intermediates.
2. The technology features cryptographic security measures that provide ease of exchanging contracts and agreements to track payments.
3. Some of the tech companies already used blockchain for the food industry. Since it ensures food safety and supply chain management. And its application in the alcohol and beverage industry is growing rapidly.
“A premium scotch whiskey brand named Ailsa Bay released the world’s first scotch whisky that is trackable with a blockchain-based system.”
4.In the year 2018, China’s food and beverage industry generated a volume of 4.27 trillion and became the world’s largest food industry.
To manage such a big industry and trillion powered economy, China is relying on blockchain technology to strengthen its food and drug quality. Walmart is also showing interest in the implementation of blockchain.
5.The increasing popularity of blockchain technology in the food industry can be accounted for through its benefits like traceability, transparency and tamper resistance. And it is increasing trust among actors including farmers, consumers, suppliers, and retailers.
6. With its implementation, the process becomes more transparent and occurrence of fraud like events reduces to a greater extent. In addition to this, the payment process becomes more clean and quick.
7. The development of mobile apps for restaurants works on blockchain technology is being handled by some of the top blockchain technology service providers in the USA.
Nowadays, a major reason behind its popularity and adoption by many IT & Software development companies is its following advantages.
Key Advantages of Blockchain Technology in the Food Industry
- Blockchain enables industry in managing food safety issues by making the system robust in the food supply chain with improved transparency. It makes big firms like Unilever and Nestle adopt blockchain technology to trace the origin of products.
- If the collected data is error-free there are fewer chances of fraud to happen. In the blockchain, collective data is less prone to inaccuracies, bugs, errors and hacking issues. Also, it’s easier to identify the culprit in the blockchain. Likewise, with blockchain technology development it became possible to prevent food fraud in Canada in 2016.
- Its application in the food industry amplifies the payment process. The farmers get benefited with the technology as it offers more value and better selling chances by connecting farmers directly to the consumers without any intervention from the intermediaries.
- According to Forbes, the blockchain empowers the agri-food industry to Uberize by reducing transaction charges and intermediaries.
- With the elimination of intermediaries in the blockchain technology, price coercion is not observed in the food system and the food producers generate great economic benefits.
- According to the United Nations’ Food and Agriculture Organization, “Around 1.3 billion tonnes of food produced in the world goes into the dustbin.” It is a noticeable issue that tens and thousands of families on our plant are struggling with hunger and malnutrition. With the application of blockchain technology, this issue can also be eliminated by regulating the process of transaction and data collection in a much better way.
Therefore blockchain is the only answer for all such issues related to proper tracking and monitoring in the food industry. It empowers food security and food safety and helps in maintaining the environment in a more friendly manner.
In the coming years, the future of blockchain technology in the food industry is bright. Several renowned brands and economics have started their use in the food industry to maintain the supply chain of the food system. Its features like transparency, traceability, quick payment process, food safety and security empower others to employ blockchain technology in their food system.
If you are willing to employ technology in your food system don’t forget to consider its advantages that will help in clearing all your doubt regarding blockchain development. Then look for an online food ordering app development company with a team of expertise blockchain developers. The food delivering app developers with knowledge of employing blockchain technology so that you can easily maintain transactions and business processes on the go.