Blockchain and the Internet of Things (IoT) have the potential to revolutionise the food industry, according to a new study from Juniper Research.
IoT solutions link the physical and digital worlds, for example via location tracking sensors and temperature and humidity monitoring, while blockchain provides an unchangeable platform where this data can be stored and accessed by every player in the process.
Blockchain: Key Vertical Opportunities, Trends & Challenges 2019-2030 says that digital ledger technology, used with IoT sensors and trackers, will reduce retailers’ costs by streamlining supply chains; offering simpler regulatory compliance and an efficient food recall process.
The report predicts that blockchain will enable $31bn (£23.5bn) in food fraud savings globally by 2024 by immutably tracking food across the supply chain. Substantial savings in food fraud (such as mislabelled, diluted or substituted products) are anticipated to be realised from 2021, with compliance costs reduced by around 30% by 2024.
The IoT and blockchain are expected to add significant value to players across the supply chain, from farmers to retailers and consumers. By replacing lengthy procedures with automated smart contracts, blockchain and the IoT bring cost reductions, risk mitigation and transparency to supply chains, Juniper Research says. The report recommends that blockchain vendors seek IoT partnerships to appeal to stakeholders across the food production market.
“Today, transparency and efficiency in the food supply chain are limited by opaque data forcing each company to rely on intermediaries and paper-based records,” commented research author Dr Morgane Kimmich. “Blockchain and the IoT provide an immutable, shared platform for all actors in the supply chain to track and trace assets; saving time, resources and reducing fraud.”
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