The US Department of agriculture has proposed introducing rules for organic products to allow tracking of supply chains using blockchain.
A document published on the Agency’s website suggests that systems for electronic tracking of food supply chains, including those using blockchain, will play an “important role” in the process of ensuring food security.
“Distributed Ledger technology provides secure, verifiable, transparent, and almost instantaneous tracking of items in complex supply chains. It is also important that the blockchain can protect confidential commercial information and trade secrets, as well as automatically restrict access to important information only to authorized persons,” the officials note.
At the same time, the Ministry recognizes that the use of developing technologies will require additional time to develop systems:
“An obstacle to the widespread use of electronic tracking systems is the lack of infrastructure development in agricultural areas, the lack of standards for interaction between systems, and the overall cost of implementation.”
The Department’s document does not name specific blockchains for integration into the state system for tracking the supply chain of organic products. However, there are links to some existing commercial systems, including the Walmart and Nestle platforms.
According to the WEF, by 2030, blockchain can save $365 billion by reducing food losses in supply chains.