7. Blockchain and AgTech

As the Industrial Internet of Things (IOT) systems are composed of interconnected devices and computers, they generate and share an increasingly diverse range and quantity of data, consequently various threats related to data theft and tempering exist. Due to this, Smart Farms incorporate blockchain technology to ensure data integrity and accuracy, creating a reliable system. Blockchain stores data in a distributed manner across all participating nodes in a network, ensuring high data availability. This helps prevent the spread of contamination due to delays in detecting contamination sources, allowing for real-time responses.

Given the background mentioned earlier and the common global issues, AgTech, which can address these challenges, is increasingly evaluated as an industry that can further grow through the adoption of Distributed Ledger Technology(DLT).

The introduction of DLT enables efficient management of agricultural resources such as land, water, and fertilizers. It records data from sensors and devices monitoring soil moisture, temperature, and nutrient levels with data integrity, accuracy, and tamper resistance. This data is then shared with stakeholders, enabling better decision-making and resource allocation.

For example, if there is a historical record of low soil fertility in a specific field stored on the blockchain, it can assist farmers in making informed decisions, such as adjusting fertilizer application rates or changing crops, leading to more sustainable farming practices.

Storing research documents on the immutable digital repository of the blockchain allows for permanent preservation without tampering, as it confirms the document's hash value, access history information, storage time, and document content. Additionally, the blockchain network assigns an ID to each entity, enabling the identification of the document's originator and viewers during the document's storage process.

AgTech using DLT can empower farmers by providing access to financial services and markets. In many developing countries, small-scale farmers face difficulties obtaining credit or accessing markets due to the lack of credit history and market information. Blockchain technology enables the creation of peer-to-peer (P2P) lending and trading platforms that bypass intermediaries, reducing transaction costs. This allows direct connections between farmers, consumers, processors, and retailers. Small-scale farmers can receive fair prices for their produce, thereby improving their livelihoods.