Several major application scenarios of blockchain technology in the agricultural industry
(1) Application in traceability of agricultural products
In recent years, relevant personnel in the agricultural industry have been exploring agricultural product traceability platforms in order to solve agricultural product safety issues, but traditional solutions are centralized, and a centralized platform means that the cost of the construction of the central platform is borne.
If the construction is undertaken by the government, the government’s management method will inevitably bring about the problem of "big thunder and little rain": the early stage of construction is huge, it cannot be effectively promoted after the construction is completed, and it also lacks continuous operation services and management.
For example, if an enterprise is responsible for the unified construction, it also involves the problem that it cannot be effectively promoted, and there is also a "trust" problem in the direct construction of the enterprise. Other peer companies cannot fully trust the platform.
And the biggest problem with the centralized platform is that the data can be unilaterally modified by the central platform or modified afterwards. The "trust" of that information still cannot be resolved. The traced source may be a forged source.
The use of blockchain technology can perfectly solve these problems:
(1) The distributed database of the blockchain determines that all participants have complete data records, and it is impossible to modify information simply. And all participants can have the decentralized characteristics of complete data records, and all participants are placed in the same position, everyone is the contributor, consumer and "owner" of information, so there is no need to worry about information anymore. Monopoly.
(2) The information is published on the whole network, so that once the data is generated, it cannot be modified, that is, mutual verification can be performed at any time. In this way, once the data is generated from production, processing to sales of agricultural products, it is a true record and cannot be forged. For real agricultural personnel, there is no need to worry about the problem of "bad money driving out good money". Data forgers no longer exist.
If agricultural products are added to the blockchain-based traceability system from planting, production, processing, and sales, it will have a qualitative impact on the operation of the entire agricultural industry chain.
(2) Application in agricultural insurance
Industry insurance has great room for improvement in agricultural intellectual property protection and agricultural property rights transactions. However, agricultural insurance has small varieties and low coverage, and insurance frauds often occur. After combining blockchain with agricultural insurance, decentralized data storage allows more participants to participate in the insurance verification process. Secondly, massive data storage and cross-validation of the actual situation of agricultural insurance will all Greatly simplify the process of agricultural insurance.
Using blockchain smart contract technology to make agricultural insurance claims more intelligent. In the past, if a major agricultural natural disaster occurred, the corresponding compensation cycle would be longer. After the smart contract is applied to the blockchain, once an agricultural disaster is detected, the compensation process will be automatically started, which makes the compensation more efficient.
(3) Application in agricultural finance
Combining the characteristics of block chain data that cannot be tampered with and smart contracts, the block chain technology is applied to the field of agricultural finance.
Farmer loans are generally difficult, mainly because of the lack of effective collateral. In the final analysis, it is the lack of credit mortgage mechanism. Since the blockchain is built on the basis of decentralized P2P credit, it goes beyond the limits of countries and regions. In the global Internet market, it can play the role of high-efficiency and low-cost value transfer that traditional financial institutions cannot replace. When a new type of agricultural business entity applies for a loan, it will automatically record massive amounts of information through blockchain technology, relying on program algorithms, and store it on each computer in the blockchain network. The information is transparent, the difficulty of tampering is high, and the use cost is low, reducing the need for new Risk control costs of agricultural business entities.
At the same time, combined with the smart contract technology of the blockchain, it can realize the signing of smart contracts for financial units, new agricultural entities, product purchasers, etc.: For example, new agricultural entities purchase production tools with loans, promise to repay after agricultural products are sold, and how to purchase downstream agricultural products After the merchants join the smart contract, the loan will be automatically repaid directly after the agricultural product sales contract is completed, which greatly improves the efficiency of capital flow, and also simplifies the loan process, reducing the risk of financial institutions and allowing more funds to flow The agricultural industry, thereby improving the scientific and technological level of the agricultural industry, provides the foundation for large-scale planting and specialized agriculture.
Only in an environment where industry information is relatively symmetrical and controllable can industry-based finance work well, and this will be able to provide the industry's scale effect and the professional skills of practitioners, so that more and more people become professional Agricultural personnel.
