According to data from Juniper Research, blockchain technology – used together with IoT sensors and trackers – will reduce food fraud, including mislabelled, diluted or substituted foodstuffs.
Titled “Blockchain: Key Vertical Opportunities, Trends & Challenges 2019-2030“, the research reveals that blockchain will reduce retailers’ costs by streamlining supply chains, offering simpler regulatory compliance and efficient food recall process. More precisely, by 2024 blockchain will enable $31 billion in food fraud savings globally by immutably tracking food across the supply chain. Substantial savings in food fraud will be realised from 2021 and compliance costs will be reduced by 30% by 2024.
Research author, Dr. Morgane Kimmich, stated: “Today, transparency and efficiency in the food supply chain are limited by opaque data forcing each company to rely on intermediaries and paper-based records. Blockchain and the IoT (Internet of Things) provide an immutable, shared platform for all actors in the supply chain to track and trace assets saving time, resources and reducing fraud.”
Added value thanks to blockchain and IoT
The research found that the IoT and blockchain would add significant value to players involved in the supply chain, from farmers to retailers and consumers. By replacing lengthy procedures with automated smart contracts, blockchain and the IoT bring cost reductions, risk mitigation and transparency to supply chains. Juniper Research recommends that blockchain vendors seek IoT partnerships to appeal to stakeholders across the food production market.
Building on their respective strengths, blockchain and the IoT can revolutionise the food industry. While IoT solutions link the physical and digital worlds primarily via location tracking sensors and temperature and humidity monitoring, blockchain provides an immutable platform where this data can be stored and accessed by every player in the process.
Blockchain, solving issues also in agriculture
The potential of blockchain to disrupt agriculture gains more and more supporters worldwide. We spoke about this on our Modex blog in a dedicated article. According to a report issued in September 2018, blockchain in the agriculture market would be worth over $420 million by 2023. Blockchain technology is revolutionizing the food and agriculture industries by enhancing the decision-making capabilities of organizations. Every year, about one-third of the food produced globally is wasted (FAO data), which calls for a need to estimate and manage the actual supply and demand of food products so that these products reach those in need. These issues can be easily and efficiently tackled by using the blockchain network effectively.
Modex, the blockchain database company, is promoting the adoption of blockchain technology and strongly believes in a future built around blockchain. Modex offers fully integrated services designed to solve the last mile adoption problem of the blockchain and aims to make blockchain user-friendly for every single device or person. At Modex, we can innovate thanks to our incredible team of experts and we offer services for the entire blockchain technology ecosystem: Marketplace for Smart Contracts, community tools for developers and blockchain services for enterprises.
In over two years, using cutting-edge technologies and with a clear strategy, Modex has evolved from the world’s first app store for blockchain into a complex ecosystem designed for developers’ needs and enterprises looking for blockchain solutions. Our mission is to spread and facilitate the adoption of blockchain into society and to solve real-world problems using this revolutionary technology.