If you are not aware of one of the finest examples of blockchain smart contracts by a well-known name then you need to pay attention to this – The IBM food trust.
For those who don’t know what a smart contract is, then you can read about them in detail here. In short, a smart contract is a computer program. The program is written in a coded language. Since codes in the smart contracts are digitally written therefore called “digital contracts.” This digital contract then works as an agreement for executing a desired process on the blockchain network.
In this piece, we are going to discuss the applications of smart contracts in the food sector. But it is important to keep the problems in our mind first. The population worldwide is facing food insecurity. This is not a matter of any particular country, but every one of us can foresee the problems most likely to occur.
The Problem Is…
To understand the change smart contracts are bringing in the food sector. It is equally important to understand the problems associated first. Incontrovertibly, India’s struggle to achieve food security is not new. Serious concerns related to rising prices, availability of the stock, and quality delivered is nowhere hidden.
On the other side, farmers are claiming that they are not getting the value they deserve for providing vegetables and crops they grow. Which is constantly degrading the count of farmers every year.
To help with such problems, smart contracts are simply the best solution to consider. Let’s see how a smart contract can be a solution to the above problems? Is it practical to get these issues resolved via a smart contract? And much more like these!
Before jumping to the applications let’s quickly understand the benefits smart contracts offer:
1. Automatic: Smart contracts are coded in such a way that they can achieve results automatically. The coding ensures continuous and effective execution of the program satisfying all the given conditions of the agreement into it.
2. Direct party agreement: Since the smart contracts agreement does not need any trusty in between neither leaves any room for trusting a third party to get the things done, the convention can be said to be directly between the two individuals or parties.
3. Cheap: Using smart contracts for executing practical operations is not expensive at all. These are the cheapest alternative to the solution of the latest technology in practical life examples.
4. Transparent: One of the most prominent features that provide smart contracts an edge is – Transparency. Once the code implements on the Blockchain, even the owner will lose control over changing it, and nobody can alter the code at any cost.
This characteristic of smart contracts ensures transparency and decentralization in smart contracts.
Real-Life Application of Smart Contracts in the Food Sector
Coming to the real-life example of IBM food trust, let us see what they did, and how they used a smart contract to make things work!
Undoubtedly, times are changing and data has become the most important ingredient in any sector recipe to succeed.
IBM food trust is a cloud-based blockchain solution that allows multiple business holders like you and me to add items for trade. Each step receives a predetermined amount of commission, where the smart contract will make sure of processing the payment.
The image provided is self elaborative itself. Modeling the food supply using blockchain technology and smart contracts serve the clarity in managing the process. One can assure of
- Assured payments to suppliers and commission holders
- Timely delivery of raw and processed materials to the store
- Equal distribution of products in time
- Transparency in the process
- Participation from all over the world
Using a smart contract for bringing change in such a huge sector will not only have its imprints on investors but on the lives of common people as well. This young technology is bridging the gap between common people and investors without compromising on the end of quality and price.
Since everything is transparent as it should be, there is no question for corruption and delivering low-quality products.
What Do We Think About This?
Delivering an opinion needs courage and clarity at the same time. The experienced eye of our expert agrees that smart contracts have great potential. Not only for managing the transactions but also for examining the quality of the product delivered. Slowly the technology is craving its paws in our homes. To welcome or to reject is the question of choice we can make.
Have you observed why you see ads to the similar products you have been searching for on different e-commerce websites? This is because of artificial intelligence. Most of us are not even aware of but people are earning a handsome amount using the technology. As it targets the potential consumer.
Using smart contracts to do the things associated with real-life will soon come to this stage. It is better to go with the latest, to earn and enjoy the technology the generation has provided us.