How can blockchain technology help improve the food industry? New Food hears from two experts about this technologys potential within the sector.

We are living in a digital era and the technology of this digital world is changing rapidly. The interesting part of this digital revolution is that it directly or indirectly impacts each of us. Whether there is a change in the smartphone technology leading to a revolution in the flow of information, or an advancement in online security thus changing the way we do banking.

In many cases, a piece of technology or system starts with solving one problem, but the more that is understood, the further its potential can grow. For example, who would have thought that irradiation, initially designed for safe space food, would be used for food preservation or HACCP and become a basic requirement for the food industry?

Blockchain is regarded as the next disruption in the technology world and is being studied in several applications, business sectors and processes. This includes the secure handling and storing of administrative records and digital authentication to strengthen intellectual property rights and patent systems, as well as bring transparency throughout the supply chain, reduce food frauds and enhance food safety.

Blockchain has established its unparalleled authority in the financial sector and now the food industry is looking at where it can be applied. We should also keep in mind that this technology is at its nascent stage and it may take more research and time before it becomes parts and parcel of the food industry.

The objective of this article is to introduce blockchain technology in common language and share some examples from the world where its application in the food industry is under study.

In basic terms, a blockchain is a digital distributed ledger, maintained by a network of multiple computing machines. It stores data in the form of blocks that are cryptographically secured and immutable. The blockchain is the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. It was first reported in 2008 and since then, has become very popular among the IT fanatics.

Decentralised

Unlike the current internet system, there is no single server where entire information is stored. These data are saved as copies in different computers (called nodes in the blockchain world) and there is no central authority supervising anything. These computers are connected to the blockchain network. Due to this distributed copies of data (transaction), blockchain is also known as a distributed ledger.

Trustless

Trustless should not be confused with not trustworthy. Blockchain provides such a transparent environment that one need not to have a third-party to mediate or enhance trust between two parties involved in transaction.

Transparent

This should not be misinterpreted as violating privacy. The identity of parties involved in a transaction is hidden via complex cryptography and represented only by their public address (code). While the identity is secure, all the transactions that are carried out by public address are accessible. This level of transparency enhances trust in the system while securing privacy.

Immutability

Any data entered in blockchain cannot be modified/tampered with in the future. This immutability feature of blockchain has made it so popular that it is being explored in all the sectors where data integrity and data protection is of utmost importance.

Blockchain is a process of passing information from stage one to stage two in a process, which takes places in a fully automated and safe environment.

Figure 1: Pictorial depiction of flow of information in current server network and blockchain network

Within the food supply chain there are different participants involved in each step, from farmers, to processors, manufacturers, certifying agencies, government agencies, logistics, distributors, retailers and so on. Each of these participants shares critical information about the product that sits in their own local server. This information is not accessible to other participants and thus, there is an increased chance of food fraud in the system.

If a consumer wants to buy organic tomato ketchup, they rely on the label claim. The manufacturer of ketchup relies on the supplier of tomato puree or concentrate processor. The tomato processor relies on the claim/organic certification furnished by the farmer or farmer association. If any of the participants provide a false claim, both the consumers and other participants are cheated.

Blockchain provides a secure environment where each of the participants in the blockchain network has access to each data and these data, once entered and verified, cannot be modified. For example, a farmer that provides an organic food certificate, which is verified by an authorised agency, cannot have that certificate tampered with at later date.

Information or data provided by each participant referred to as a transaction forms a block. This block is verified by thousands, perhaps millions, of computers distributed around the blockchain network. The verified block is added to a chain, which is stored as multiple copies across the net. This creates a unique record with a unique history. Modifying a single record would mean modifying the entire chain and in millions of computers (nodes), which is practically impossible.

This unique property of blockchain is due to thecryptographic hash function. In simple terms, hashing means converting all input data (information) or any length to a fixed-length coded output. Interestingly, even if we make a small change in input, the changes that will be reflected in the hash will be huge. Figure 2 is an example of a hash created using the SHA-256 algorithm. You can see only changing P from capital letter to a small letter, changes the hash drastically. It should be also noted that irrespective of the size of input text/information, the length of the hash remains same.

Input

Hash

Tomato Puree

fba8d76ce672034611034b47dfb44e2a051b3efefed5c98fa5bcd93d04052fb0

Tomato puree

2de11dbbe1a285a63334696df0f4be1e3d529710b60308646305c5a978eae3f3

Figure 2: Example showing how Hash changes drastically with slight change in input

In blockchain, each block (information/input) is linked to another block that contains data and a hash of the data inside the previous block. So, any change in data at any stage/block will change the hash drastically, therefore causing an avalanche effect disturbing the entire blockchain. You can correlate it with a genetic mutation. In point mutation, a single change in nucleotide pair can change entire genetic makeup. A slight change in information would change the entire blockchain and as these are saved as several copies in the network, it cannot be practically done.

To understand data input at different stages of the supply chain, blocks and hash and blockchain refer to a pictorial explanation in Figure 3. To depict the hash of the block, the colour of the block and its hash in the subsequent block is kept the same.

Figure 3: Pictorial depiction of information forming blocks are every stage of supply chain. The data from each block is converted to hash which becomes part of next block

Blockchain, when integrated with the latest technologies for data capturing, has huge potential in the food industry. Building on the respective strengths of blockchain and the Internet of Things (IoT), we can revolutionise the food industry. IoT solutions link the physical and digital worlds, capturing data like temperature and humidity during transportation or storage of product. Blockchain provides a secure and an immutable platform where this data can be stored and accessed by every participant in the supply chain.

In its latest report, Key Vertical Opportunities, Trends & Challenges 2019-2030, Juniper Research shows that blockchain used with IoT sensors and trackers will have several advantages. These are:

According to the 2018policy paperbythe Food and Agriculture Organizationof theUnited Nations (FAO), blockchain could dramatically transform the food supply chain in India. As per the policy paper, blockchain technologies can help in building an immutable contract between the various players in supply chain, enabling further transparency in the system.

A smart contract can reduce the number of intermediaries in the supplychain network. These smart contracts can reduce transaction costs, improve margins and increase efficiency, and as a result, transfer a large chunk of profits to the farmer/producer.

There are several IT giants who have made different blockchain platforms or solutions to the food industry.A few examples include Food Trust and Watson platforms by IBM, Track and Trace, and Leonardo platforms by SAP, Track and Trace, and Internet of Things solutions by Oracle.

Below, we have compiled several examples from different food industries where blockchain has been or is planning to be used in pilot-scale to bring transparency in the supply chain network and gain consumer trust.

Blockchain is a promising technology with multidimensional benefits. If used along with the IoT, we can establish a transparent supply chain of food, reduce food fraud and build consumer trust.

There are already many companies who are experimenting with this new technology and these trials will further build the capabilities of the blockchain technology and make it economically viable also to be accepted by the majority of food processors in coming years. In order to bring this technology to the mainstream of the processed food world, food processors, supply chain participants, government authorities, and IT experts have to come together to build a comprehensive plan to implement Blockchain Technology.

About the authors

Sanjeev Kumar Sharma is a Food Scientist by profession and has about 14 years of experience in different food industries like Nestl, Heinz, and Mondelz. Currently, he is working in the R&D centre of Mondelz in India. He is an author of three books an active blogger and founder of http://www.foodtechpathshala.com.

Vinay Singh is a data science manager at BASF SE and has over 15 years of industry experience focusing on digital solutions. He is the author of several books and is also visiting research scholar at National Central University of Taiwan and guest lecturer at Furtwangen University, Germany

Disclaimer: Views and opinions expressed are those of the authors and do not necessarily represent official positions of their respective companies.

Blockchain, Contaminants, Data management, Equipment, Food Fraud, Food Safety, Ingredients, Outbreaks & product recalls, Packaging & Labelling, Processing, Quality analysis & quality control (QA/QC), recalls, Research & development, Robotics & automation, Sensory technology, Supply chain, Technology & Innovation, Traceability

Originally posted here:

Applications of blockchain technology in food industry - New Food