The six major judgments tell you: What is the real "blockchain + agriculture"?
" Blockchain " is one of the hottest words of the moment. It is no exaggeration to say that the blockchain is to the industry, just as the hard disk is to the computer in the 1980s, and the e-commerce is to the Internet in the 2000s.
How to identify the real "blockchain industry"?
As an analogy, the blockchain industry is like financial software several years ago. The work of "finance" first exists, and "software" uses it to make financial work more clear, intensive, and global. Reduce costs, improve "financial" efficiency, and even coordinate production and intensive resources.
The correct interpretation of "blockchain service industry" or " industrial upgrading through blockchain" is: Blockchain is a technology. Applying blockchain technology and blockchain thinking to the industry is an industry Charcoal in the snow or icing on the cake, and the real subject is the industry. This industry is likely to have existed before, or it may already be part of the industrial chain. The blockchain uses its own unique method to record, integrate, upgrade, and even "industrial revolution".
China's agriculture is a basic industry that provides support for the construction and development of the national economy. It belongs to the primary industry and is related to national economy and people's livelihood. This is an industry full of business opportunities and an industry that requires a high degree of responsibility.
What is the real "blockchain + agriculture"?
The real blockchain + agricultural industry will definitely meet and solve the following pain points:
1.Internet of Things
At present, the main factors restricting the large-scale promotion of the agricultural Internet of Things are high application and maintenance costs and poor performance. Moreover, the Internet of Things is centralized management. With the explosion of Internet of Things equipment, the infrastructure investment and maintenance costs of data centers are difficult to estimate.
The combination of the Internet of Things and the blockchain will enable these devices to achieve self-management and maintenance, which eliminates the high maintenance costs centered on cloud control, reduces the subsequent maintenance costs of Internet devices, and helps to improve the agricultural Internet of Things Level of intelligence and scale .
The three major achievements of traditional databases, relational models, transaction processing, query optimization, and database technology are constantly developing. With the establishment of agricultural big data collection system in the future, how to solve the authenticity and validity of data in a large-scale manner will be a difficult problem facing the whole society. The technology represented by the blockchain requires these data to be authentic, valid, unforgeable and cannot be tampered with. This is a new starting point compared to current databases.
3.Quality and safety traceability
In the process of agricultural industrialization, there is a long distance between the place of production and the place of consumption. Consumers have no way of knowing the information such as pesticides, fertilizers and additives used in transportation and processing by the producers, and consumers' trust in production has decreased.
The agricultural product traceability system based on blockchain technology, once all the data is recorded on the blockchain ledger, it cannot be changed. Advanced technology relying on asymmetric encryption and mathematical algorithms fundamentally eliminates human factors and makes information more transparent.
4. Rural finance
Farmers' loans are generally difficult. The main reason is the lack of effective collateral, which in the final analysis is the lack of a credit mortgage mechanism. The open and immutable nature of blockchain technology provides the possibility for a decentralized trust mechanism.
When a new agricultural business entity applies for a loan, it needs to provide corresponding credit information, which depends on the corresponding information data recorded by the bank, insurance, or credit reporting agency. However, there are problems such as incomplete information, inaccurate data, and high use costs. The usefulness of the blockchain is to rely on program algorithms to automatically record massive amounts of information and store them on each computer of the blockchain network. The information is transparent, the tampering is difficult, and the use cost is low. Therefore, when applying for a loan, it is no longer necessary to rely on intermediary institutions such as banks and credit reporting companies to provide credit certificates, and the loan institution can obtain the corresponding information and data of the blockchain.
5. Agricultural insurance
Agricultural insurance has a small variety and low coverage, and insurance fraud often occurs. After combining blockchain with agricultural insurance, agricultural insurance will have a lot of room for improvement in agricultural intellectual property protection and agricultural property rights transactions, and it will greatly simplify the agricultural insurance process.
In addition, because smart contracts are an important concept of the blockchain, applying the concept of smart contracts to the field of agricultural insurance will make agricultural insurance payments more intelligent. In the past, if a large agricultural natural disaster occurred, the corresponding claim period would be relatively long. After the smart contract is applied to the blockchain, once an agricultural disaster is detected, the compensation process will be automatically started, so that the compensation efficiency is higher.
Blockchain technology helps improve the efficiency of supply chain management. Because the data is open and transparent between the parties to the transaction, a complete and smooth information flow is formed throughout the supply chain, which can ensure that the participating parties can timely find problems in the operation of the supply chain system and find them in a targeted manner. Problem-solving methods to improve the overall efficiency of supply chain management.
Blockchain technology can avoid supply chain disputes. The characteristics of immutable data and proof of the existence of time stamps can be well applied to resolve disputes between participants in the supply chain system, and achieve easy proof and accountability. Blockchain technology can be used for product anti-counterfeiting. The combination of data tamperability and transaction traceability can eliminate the problem of counterfeiting and shoddy products in the supply chain.
Take potato production as an example to explain, all the data of the entire potato production process will be uploaded to the distributed ledger storage, forming the content of the non-tamperable ledger, which is provided to consumers and buyers for inspection.
For example, the procurement process of fertilizers and pesticides is recorded in the book to avoid the problems of excessive heavy metal standards and excessive pesticide residues from the root cause; through the analysis of big data, the credit rating reference for growers and buyers is established; and smart contracts are used for growers and buyers Fair trade between guarantees. The sales process also stores information such as sorting and processing in a distributed ledger to ensure complete and transparent information to stakeholders.
So, in this process, how does the biggest advantage of the blockchain, that is, the advantages of distributed account books? In this regard, in the past, buyers would send someone a high price for potato growers before purchasing. However, when a farmer digs up potatoes from the field, the farmer often cannot reach this person. At this time, the buyer sends another person to take advantage of the fact that potatoes are not easy to store on the ground, which greatly reduces the price of potatoes. With the adoption of blockchain technology, every transaction is open to everyone, and this problem can be solved.
Use blockchain technology to achieve full distribution, so that consumers, growers, buyers, wholesalers, etc. all keep synchronized accounting to prevent tampering. You can use the mutual incompatible mechanism to check and ensure the authenticity of the data and avoid benefits. Risk of concerted action under convergence.
The traditional traceability system is the individual behavior of a single company, and it is both an athlete and a referee, and its credibility is weak. After the adoption of blockchain technology, the distributed ledger will organize farmers, cooperatives, dealers, and consumers to record planting information together, and use the non-tamperable feature to play a role of information transparency.