Why blockchain is NOT a fit for Agriculture!
Over the last year or so, we constantly hear about the benefits of blockchain and how almost every industry will be disrupted.
What I’ve heard is a lot of talk, little follow through and little change.
I have seen many people get rich by talking about the huge benefits of crypto currencies, but always it’s “in the future” and never about now.
I do believe crypto has a great future, but with over 1500 coins and 99% with no real need, it’s something which “sounds good”, but right now it’s no where near being really impactful, except for those who have profited from their gambling, as that’s exactly what crypto and general stock trading is, it’s all gambling.
Now lets get to why Blockchain or a decentralised ledger is not the answer to issues in agriculture.
Put very simply you have been able to track packages since FEDEX allowed people to log on and see where their items a re at any given time. Now, when you buy something from someone on E-bay, do you know the item inside is 100% what they claimed? Did it have any scratches, dents, issues with the item you just bought? Sometimes yes, that happens, but E-bay’s review system helps to mitigate this issue.
Now look at agriculture. People will say to you, the Blockchain will help traceability of the crops/food you buy? How? How is this any different to a FEDEX style pick up? They will then tell you, Blockchain will mean more trust in the items you buy from the farmers and or traders? How? How on earth would this change anything, now that 300 computers around the world will know you just bought something from a farmer?
This does not create food security as they claim, it does not help you or the buyer and it does not disrupt anything.
Blockchain has a huge role to play in the world, but its role is not in agriculture and food security will not be affected in the slightest.
As everything is based on the assumption that the person you buy something from, is 100% accurate. It also does not protect the crops you buy from being altered along the way. How does this protect the crop from tampering? How does it help the farmer? How does it help the buyer?
The answer is, it really does not.
There are a few good companies in agtech out there and they’re not using blockchain, as it has no worth. One I can think about who does use blockchain for agriculture, believes everyone in the world has a 3G connection, when they don’t even have electricity.
Again, the technology has huge implications for medical records, buying a house with all the escrow issues, finance and more. It’s just not really relevant to agriculture and if it is, it would be down to record keeping, not proving immutability of crops.