What is Blockchain?
Blockchain is a decentralised and transparent digital ledger system that securely records and verifies transactions across multiple computers, making it nearly impossible to tamper with or manipulate the data. Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
Key elements of a blockchain:
- Distributed ledger technology
All network participants have access to the distributed ledger and its immutable record of transactions. With this shared ledger, transactions are recorded only once, eliminating the duplication of effort that’s typical of traditional business networks.
- Immutable records
No participant can change or tamper with a transaction after it’s been recorded to the shared ledger. If a transaction record includes an error, a new transaction must be added to reverse the error, and both transactions are then visible.
- Smart contracts
To speed transactions, a set of rules called a smart contract is stored on the blockchain and executed automatically. A smart contract can define conditions for corporate bond transfers, include terms for travel insurance to be paid and much more.
Benefits of blockchain:
- Greater trust
With blockchain, as a member of a members-only network, you can rest assured that you are receiving accurate and timely data, and that your confidential blockchain records will be shared only with network members to whom you have specifically granted access.
- Greater security
Consensus on data accuracy is required from all network members, and all validated transactions are immutable because they are recorded permanently. No one, not even a system administrator, can delete a transaction.
- More efficiencies
With a distributed ledger that is shared among members of a network, time-wasting record reconciliations are eliminated. And to speed transactions, a set of rules called a smart contract can be stored on the blockchain and executed automatically.
How blockchain help smallholder farmers:
By using blockchain technology, smallholder farmers can benefit from improved access to financial services, increased traceability of their produce, reduced transaction costs, increased market opportunities and strengthened trust among stakeholders, ultimately overcoming their barriers and empowering them to participate more equitably in global agriculture.
we identified nine ways blockchain can empower farmers:
- Build up a self-sovereign digital identity
- Control and monetise their data
- Get access to finance
- Get access to insurance
- Get access to international markets
- Regain trust from consumers
- Prove brand promises and ownership claims
- Send and receive payments
- Earn a living income
Conclusion:
Blockchain technology holds tremendous potential to revolutionise industries, promote transparency, and foster trust in various sectors, including finance, supply chain management, healthcare, and agriculture. With its decentralised and immutable nature, blockchain is poised to reshape traditional systems, enabling greater efficiency, security, and inclusivity in the digital age.
