Advantages of using blockchain technology in the food industry
Blockchain technology is an immutable and shared ledger over the decentralized network which is peer-to-peer. Many industries have adopted blockchain technology to mitigate issues related to security and document safety. This technology is not limited only to the financial sector. The food industry is constantly embracing blockchain where it is making traceability and tracking several food items beginning from the farm. Securing documents with QR codes based on blockchain technology is easier.
What are the major issues persistent in the food industry?
A few issues in the food sector are there. This industry is huge but many problems are not solved effectively. It can lead to the destruction of the complete ecosystem. Let us have a glance at why the food sector requires blockchain technology.
- No proper product traceability
- Complexity of inventory management
- Lesser transparency in food labelling
- Poor food safety
- Lack of document security
How blockchain technology can be highly beneficial for the food industry?
Blockchain technology usually works in several ways in the food sector. There are a few most looked after advantages:
Ensures food safety
Blockchain technology can work wonders for food security. How can it be so? If food companies are using blockchain in food safety then that helps aid the customers to remain at ease. With trust, they can purchase their food items without any worry related to food contamination. The food sector is not well apt of tracking true contamination sources. Blockchain can efficiently tackle raw materials. Quality, as well as standard maintenance, can be properly done with the help of blockchain technology. There is an importance of document security, with blockchain technology, you can secure all documents related to food safety like licenses, audit records etc.
Enhances food traceability
What is most needed in the food industry is – Food traceability. Tracking food products is one of the biggest issues which most companies face. Without proper tracking, customers may not have any clue from where the food was actually processed. Blockchain technology in food traceability can change this whole scenario. It can tackle the food tracing of food items straight from the suppliers to the customers.
Boosts Inventory Management
Usage of blockchain in the food supply chain can efficiently automate the food production process. and ward off discrepancies in the production line. It can lessen the lead time and boost inventory management. Document identity theft can also be reduced if food companies use blockchain.
Reduction in food waste
Usage of blockchain technology especially in food traceability can help in the reduction of food wastage. There are various causes of wastage of food beginning from poor inventory management to late shipment of food items. Blockchain technology can trace food products and maintain food health codes.
Now you know what issues persist in the food supply chain and blockchain technology can efficiently reduce them. This technology can be the proper solution by keeping customers away from risk. Food companies can adopt blockchain to make the food community healthy. Securing a document with a QR code based on blockchain technology is simple.