Executive Summary
This research investigates how Blockchain and Internet of Things (IoT) devices could change the agriculture and food supply chains. This integration has completely disrupted conventional supply chain paradigms by improving efficiency, transparency, and safety. When combined with Blockchain technology, IoT devices streamline data gathering and transmission while providing immutable records that cannot be altered. IoT’s ability to collect data from physical items and blockchain’s firm data security has significantly impacted the agriculture and food industries. We look at how IoT and Blockchain may work together for the benefit of the Agri-Food sector, both now and in the future.
The research highlights the significance of supply chain traceability. IoT’s data-gathering abilities enable traceability from farm to fork. However, present solutions have security risks due to their reliance on single databases. The distributed ledger technology of blockchain reduces this vulnerability by providing trustworthy record-keeping. Proof of blockchains’ impact on the Agri-Food sector can be seen in initiatives tackling issues like food security, sustainability, and supply chain management. With blockchain, consumers can ensure that all transactions are recorded accurately and securely.
Efficiency improvements, new channels of communication between producers and consumers, and higher earnings with fewer intermediaries result from the popularity of IoT and Blockchain technology. Data management, cyber security, and regulation compliance remain persistent obstacles. The study features informative case examples, one of which is the seafood traceability system in Providence. The agricultural process is being revolutionized by incorporating IoT and Blockchain, including data creation, cleaning, machine learning integration, and blockchain storage. This technology’s wealth of data, predictive models, and safe data storage options foster sustainable development and open communication in agriculture.
The IoT and Blockchain integration represents a paradigm change in the Agriculture and Food supply chains by providing transparency, security, and operational efficiency. While there are still certain obstacles to overcome, the revolutionary potential and successful implementations make this integration a critical step forward in the Agri-Food business.
Introduction
Blockchain technology’s integration with the Internet of Things (IoT) has revolutionized the Agri-Food supply chains in the modern day. The integration of these facets has not only reshaped the conventional models of supply and distribution but also initiated a significant transformation toward enhanced efficiency, transparency, and safety (Torky & Hassanein, 2020). The Agri-Food industry is now experiencing a significant transformation due to the integrating of IoT devices, which enable the seamless collection and communication of data, and Blockchain technology, which guarantees the creation of immutable and tamper-proof records (Torky & Hassanein, 2020). In the current age characterized by extensive interconnectivity, experts explore the compelling interplay between IoT and Blockchain technology, elucidating their significant influence on the present and future of the Agri-Food sector.
Blockchain and IoT
The IoT refers to tangible objects that have the potential to process data via various software applications. These objects are equipped with sensors that facilitate traceability. Furthermore, they establish connections and exchange information with other systems or devices through the Internet and other technological platforms (Ojha et al., 2021). The IoT may be an innovative technological advancement since it eliminates the need for devices to be linked exclusively to a single network. Instead, each item with internet connectivity can establish individual connections and share information.
Blockchain is a decentralized and immutable system designed to securely record and store information, rendering it impervious to unauthorized access, tampering, or modification. It is often understood as a digital ledger replicating transactional data, distributing it over a network of interconnected computer systems known as servers (Zheng et al., 2018). Whenever data is posted to a ledger, that very same data is also uploaded to all the participating ledgers in the network. The inherent decentralization of blockchain technology renders it impervious to breaches. In the event of a breach of information on a specific block or ledger, the data on other blocks stays unaffected. Consequently, the integrity and security of the data are preserved, as it remains accessible on the other interconnected servers without any compromise.
In recent times, integrating IoT devices and other technological advancements has facilitated several sectors in enhancing their supply chain systems, operational efficiency, and financial gains. IoT has significantly improved agricultural and food supply networks (Torky & Hassanein, 2020). One significant limitation of using present IoT-based traceability plus Providence systems in Agri-food chains is the reliance on a centralized database and infrastructure inside the IoT framework. This design feature creates a vulnerability that could lead to significant breaches in data integrity (Torky & Hassanein, 2020). The amalgamation of blockchain technology with current IoT technologies has the potential to mitigate the drawbacks associated with centralized database-driven data breaches.
Blockchain Impacts on Agriculture Industry
The global food supply chain network is a complex system that involves several stakeholders. They include farmers, shipping firms, wholesale distributors, distribution routes, consumers, and retailers (Caro et al., 2018). Primary constituents of the agricultural food supply chain network may be delineated as follows: Production, processing, distribution, retailing, and consumption.
The production phase encompasses the agricultural operations that the tax imposed upon the farm. Farmers use many resources, including raw materials, seeds, animal feed, fertilizers, and other supplementary activities, to cultivate crops and rear livestock (Caro Ali et al., 2018). The variability of agricultural harvests and the duration of the harvesting process is contingent upon the farming cycles.
Processing refers to the transformative process through which crops and harvested goods are converted into distinct products (Hasan et al., 2023). They are packaged primary or secondary goods such as meat, milk, and eggs. The primary focus of this procedure is on the packaging of the merchandise, including informative labelling that provides consumers with a comprehensive understanding of the product’s constituents and uses guidelines.
During the distribution phase, wholesalers and other intermediaries choose items directly from the enterprises or processing units and then transport and distribute the commodities to the retailers (Hasan et al., 2023). One of the primary considerations throughout the distribution phase is the secure transportation of products to minimize damage and reduce waste.
During the retailing phase, small individual and large food supply retailers, e.g., Costco and Walmart, procure items from wholesalers. These commodities are then stored inside their respective warehouses until they are released onto refrigerated shelves for sale to the end customer (Hasan et al., 2023). Lastly, the customer acquires the sellers’ commodities for use (Hasan et al., 2023). Consumers exhibit a notable level of care about the materials and inputs used throughout the agricultural and processing stages of their final product. The end customer is concerned with quality standards, product origin, ecologically sustainable manufacturing processes, and other sustainability concerns. The agricultural industry and the food supply network have undergone significant changes, resulting in a customer base that places a high value on authenticity and the organic nature of products.
Blockchain technology was first developed to facilitate the functioning of cryptocurrencies, particularly Bitcoin, by providing an expanded public ledger. Utilizing blockchain technology has enabled the recording of Bitcoin transactions without reliance on a central authority for ongoing verification of transaction authenticity and accuracy. However, the vulnerability to potential data breaches remains significant in contemporary times (Tripoli & Schmidhuber, 2018). Following its early success as a functional aspect of cryptocurrencies, several supply chain networks have embraced the integration of blockchain applications.
According to the AGRA (2018) report for 2017, it was observed that Agri-Digital, a corporation, executed its inaugural transaction for the trade of 23.46 tons of grain via blockchain networks in December 2016. A significant number of 1300 customers have engaged in transactions surpassing 1.6 million tons of grain using cloud-based technologies.
Figure 1: The forecasted value of blockchain in the agriculture and food market worldwide in 2020 and 2026.
Source: Statista, 2022.
Integrating blockchain technology into the agriculture and food supply chain network was not only a matter of adaptation. The wine business has used several digital technologies to enhance its operations, including RFID, QR codes, online certificates, sensors, and other tracking systems (Motta et al., 2020). The interconnectivity of mobile and other applications via the Internet of Things (IoT) demonstrates that these technologies do not operate in isolation (Borah et al., 2020). Instead, each technology relies on other technologies for its functionality and effectiveness.
Figure 2: Blockchain agriculture food marketing.
Source: Research and Markets, 2023.
Nevertheless, blockchain application in the agricultural sector has facilitated efficient and transparent information documentation for all relevant stakeholders (Zheng Z. et al., 2018). The blockchain is a permanent and unalterable method of storing data and information obtained from various transaction stages, verified by several business partners in the supply chain network.
Blockchain is structured in a way that requires validation from all participating parties, with their consent, for each block. Consequently, every block connected within the blockchain network is validated and contains all available information, creating a permanent record throughout the process (Zheng Z. et al., 2018). This feature allows interested parties to access any server and verify information relevant to their needs.
Blockchain technology being used in agricultural supply chain networks has led to many projects addressing the challenges in the conventional agricultural business. Consequently, the following projects are the primary endeavours facilitated by blockchain technology (Kamilaris et al., 2019). The critical efforts that are effectively implemented utilizing blockchain technology include ensuring food security and safety, maintaining food integrity, supporting small farmers, implementing the farm-to-home concept, addressing sustainability concerns such as waste reduction, and enhancing control over the supply chain network.
Problems that Blockchain and IoT Solve for the Agricultural Food Industry
The concept of traceability from the first stage of gathering inputs to farms to consumer consumption was the critical problem blockchain addressed in the agricultural food supply chain networks. The use of blockchain has made it possible for the parties in the supply chain network to update data on plants, essential inputs, and livestock, including information on birth, growth, and other aspects (Awan et al., 2021). Weather conditions throughout the farming stage and information on the transition stage of agricultural goods from the farm to the retailer’s shelf are provided.
The primary problem that blockchain disrupted in this network of agricultural food supply chains was that it raised the bar for transparency and improved the sustainability of contemporary farming (Lin et al., 2020). Finally, a buyer may decide on their purchase after researching without worrying about the safety and morality of the finished product they will consume.
Utilizing Blockchain for Farm-to-Market Operations
Blockchain technology inside agricultural food supply chain networks can eliminate intermediaries. As a result, farmers might get a higher portion of income traditionally distributed among intermediaries and merchants (Laurie, 2018).
Implementing blockchain technology enhances products’ visibility and accountability as they transition to distributors. Consequently, engaging in direct transactions with farmers and procuring goods directly from them becomes more advantageous. This approach reduces expenses, time requirements, energy consumption, and other associated processes involved in the supply chain from farmer to consumer (Praveen et al., 2021). Due to the decentralized nature of information storage on servers, customers linked to IoT devices can now directly communicate with farmers and make orders without physically visiting a shop and reading product labels.
Traceability in the Agri-Food Industry
Companies View in the Context of Supply Chain on IoT and Blockchain
Consumers are increasingly inclined to investigate their food’s provenance, particularly determining if it has grown sustainably. The demand for organic goods, sustainably sourced livestock, and organic farm produce has grown significantly in recent years (van Hilten et al., 2020). Nevertheless, the primary focus is on the precision of product labelling and the extent to which consumers may rely on the information provided on the label. Consumer demand for sustainably harvested produce has coincided with increased fraudulent activities within the food manufacturing industry (Singh & Sharma, 2023). Producers intentionally sell mislabeled products, taking advantage of the lack of connectivity between different stages of food production. This lack of connectivity means retailers and end consumers need more means to verify the product’s exact origin.
The integration of blockchain within the supply chain network of the Agri-food industry has resulted in enhanced transparency and reliability of information. By incorporating blockchain networks, manufacturers and all stakeholders in the supply chain can record each step of the process, ensuring that the information entered is immutable and trustworthy (Anderson, 2020).
Providence, a British firm, has conducted a successful experiment, including implementing a blockchain application using a mobile platform. This application enables end consumers to effectively monitor the process of tuna harvesting in the Indonesian seas, up to its delivery to restaurants in Japan. Every fish captured in the eastern region is tagged and recorded in the blockchain system immediately after capture (Cocco & Mannaro, 2021). Subsequently, further records are produced whenever the fish undergoes any transformation or processing to ensure its suitability for ingestion.
Figure 3: Farm management system model
Source: National Library of Medicine https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8227601/
Emydex shared traceability with Deacom ERP software, one of the software vendors offering solutions specifically for agricultural food supply chain networks, enabling precise traceability and transparency in their respective processors and supply chain operations. Implementing traceable software into agricultural food supply chain networks enables the management of food farming and manufacturing with a single system and tight control setting. It also enables recording all the individual details in one system and preventing incorrect and misleading information or untested ingredients on production (Marchese & Tomarchio, 2022). Since the agricultural food supply is a network, delivering the correct amounts while adhering to established protocols will also be possible. All stakeholders in this network will be able to increase their earnings by cutting down on errors.
Two significant issues exist with the Traceability method in the firms that feed the organic food supply chain. The two main issues with the traceability idea are maximizing the chain partner cooperation and choosing which data to record in the blockchain (Aung & Chang, 2014).
Threats to Cybersecurity in the Internet of Things Supply Chains
Supply chain networks that have incorporated RUT and blockchain also face a lot of cyber security vulnerabilities, just like any other digital transformation technology. The cyber security dangers the industries face are explained in depth. One of the main issues with the industry is data mishandling throughout the formation stage. For the end user to make an educated choice, the data must fit in the early stages of developing the blockchain and IoT devices (Alsinglawi et al., 2022). Even when inaccessible faulty and false information is in the blockchain, if the data is mismanaged at the initiation stage, it will have a cascading impact on the connected and supporting actions after the farming stage. The main problem with blockchain and IoT in farming is that farmers need to be made aware of how to use the technology and are unaware of how crucial it is to keep accurate records of all information about the crops they are growing.
Another risk to blockchain is phishing, in which a hacker attempts to get user credentials. They can email the owner of the wallet key using emails that seem to be accurate (Alsinglawi et al., 2022). The user must use the provided fake URL to submit login credentials. The blockchain network may suffer as much as the user if someone gains access to their login credentials and other private information. Additionally, they are open to follow-up assaults.
The lack of a solid legal foundation to handle potential problems is also a significant problem regarding cyber security around IoT and blockchain networks. No defined regulatory frameworks currently control blockchain transactions (Kumar et al., 2022). Although the network may have operating rules, no overarching body oversees and controls its operations.
Blockchain Technology Role in Agriculture
The industry faces several obstacles to enhancing profitability amidst varying environmental and contextual circumstances. These include meeting the needs of a growing population by cultivating more sustainable food sources, minimizing the ecological impact, and optimizing customer satisfaction (Zhou et al., 2021). Also, promoting transparency in associated and ancillary operations and guaranteeing equitable compensation for critical participants within the supply chain network. Integrating IoT technology with blockchain transforms the agricultural food business, promoting sustainability and transparency (Alobid et al., 2022). It is achieved using streamlined methodologies that effectively optimize the allocation of farming resources such as water, labour, and fertilizers.
Figure 4: Process of blockchain-enabled farming
Source: Leeway Herts. https://www.leewayhertz.com/blockchain-in-agriculture/
Blockchain can transform the manufacturing process of food below four steps.
- IoT Devices Generating Data
With the continuous growth of the worldwide population, implementing IoT-enabled smart farming has become prevalent. This technology utilizes sensors to monitor several aspects of crop cultivation, including temperature, pH balance, soil levels, humidity, and light. Using IoT sensors and devices facilitates the generation of data that empowers farmers to make well-informed choices on their crops and livestock growth and development (Ge et al., 2017). The data collected from these IoT devices is organized in a structured way before being sent to the blockchain storage facilities.
- Cleaning of Data
Before storing data in blockchain clouds, it is essential to cleanse and arrange unorganized information in a manner that all relevant stakeholders can comprehend. Integrating big data into the IoT and blockchain-based agricultural businesses is a significant development. It involves collecting, processing, and utilizing a substantial amount of information, which is then stored on cloud-based platforms accessible to any party with an IoT device (Ge et al., 2017). Data enrichment is a process that aims to enhance the value and quality of recorded information. The efficient data collection is shown by including timestamps, demographic information, and unique product specifics inside the system. The last step involves preparing the data for utilization by ensuring its storage on a blockchain platform that combines compliance and a well-organized structure.
- Integration of Machine Learning Algorithms
Machine learning refers to a collection of autonomous devices that operate cohesively to generate insights autonomously, akin to the functioning of artificial intelligence. Predictive models can create several data types, including crop quality assessment, road-related issues detection, crop identification, and projections of future demand and yield outcomes (Ge et al., 2017). With this data, farmers and other relevant stakeholders could consistently enhance the infrastructure and other auxiliary systems using the knowledge acquired via these machine learning algorithms. Machine learning application methods allow for the storage of information utilizing blockchain ledgers. This implementation provides players in the sector with a transparent perspective of the ongoing activities in the area.
- Saving Information on the Blockchain
Once the data is saved on the blockchain, it mitigates the vulnerabilities associated with conventional centralized server-based information storage systems. These systems are susceptible to security breaches by hackers and other faults, which may compromise the integrity of the information and the system itself (Ge et al., 2017). The valuable data obtained using machine learning methods is saved inside the Interplanetary File System (IPFS), a decentralized storage platform. This system uses particular addresses that are hashed and stored on the blockchain.
Conclusion
Blockchain technology and the IoT in the agricultural and food sectors represent a new paradigm change. This convergence provides unmatched advantages by boosting traceability, transparency, and efficiency across the supply chain. Blockchain guarantees tamper-proof data integrity and record-keeping, reducing fraud worries and protecting goods’ genuineness. IoT devices enable real-time monitoring of critical metrics, allowing precision farming, optimal resource usage, and prompt intervention.
The convergence of these technologies has the potential to transform current approaches to food safety, quality control, and sustainability. Farmers, suppliers, distributors, and customers benefit from increased process visibility, less waste, and well-informed choices. However, interoperability, scalability, and data privacy issues must be overcome for a successful application. Collaboration efforts between technology developers, regulators, and industry stakeholders will be essential to fully use the possibilities of blockchain and IoT as the environment changes. The collaboration will help to promote a more secure, resilient, and consumer-focused agriculture and food ecosystem.
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