Food, which reaches 50 billion dollars in the global food industry, moves every year and leads to public health. When spreading accurate and realistic, Blockchain can prevent this mysterious crime.
The problem? Because it comes with a high price sign. The ability to expand, cost, intercourse and integration constitute large barriers. Not to mention the concerns of privacy, organizational uncertainty and long length to adopt the stakeholders.
But food fraud does not go anywhere. David Carvalho, CEO of Norris, also noticed:
“Most people will be surprised by hearing that food fraud is a problem, but it costs the global food industry between 30 billion dollars and 50 billion dollars every year. This is a small percentage of the total value of the sector – more than 12 trillion dollars – but it is still equivalent to the gross domestic product of a small country like Malta.”
So, what must be done? How can the Blockchain execute really achieve?
Food fraud bites are deeper than we realize
United Nations Food and Agriculture Organization (Food and Agriculture Organization) outline This food fraud intentionally includes customer deception about the quality or content of the food they buy.
Basically, it is deliberate replacement, adding or removing materials to make economic gains.
Fraud models are varied and developed. This name includes wrong, theft, forgery and mitigation.
Examples in the real world are many. The melamine has been added to the milk in China to falsify the protein content. Horsmitt has been sold as beef in Europe. Olive oil is often diluted with cheaper vegetable oils.
Economic losses are amazing. But the actual cost is much higher when calculating reputation damage, organizational compliance, legal battles, and consumer loyalty.
In some cases, the human cost can be more destructive; The 2008 melamine scandal in China hurt more than 300,000 infants.
Temujin Louie, CEO of Wanchain, highlighted the evil course created by food food:
“The fraud incident leads to a healthy intimidation, which leads to consumer confidence. This decreasing confidence can be translated into a decrease in sales of the brand involved and the wider product category, and thus harm legitimate companies economically.”
The damage is not calculated as the sum of individual losses. It must be calculated as a systematic weakening of the Food Industry Foundation.
Cracks
The complexity of the global supply chains creates fertile ground for fraud. The cold chain is especially weak.
Logs in the cold chain logs can damage. These fraudulent failures allow the distortion of storage conditions or the sale of goods at risk as new.
Fraud is not limited to prominent issues or luxury goods. Dairy, spices, seafood, organic products, honey Fruit juices are frequent goals.
Carvalho added that fragmented data systems are a major Achilles heel:
“Many companies maintain their internal tracking systems, but it often lacks the ability to operate with its suppliers or customers. This results in” information islands “that prevent a comprehensive and comprehensive vision of the supply chain.”
Fraud products enter and move through the system without discovery without joint and reliable data.
Blockchain bites again
Blockchain technology can be an antidote to this growing crisis. However, Louis warned that attempts to hold accountable Blockchain have faced her share of challenges.
Louis warned, “During the 10 years of launching Ethereum, we have not yet seen any real disturbance.” “One of the reasons why the promise of weeds chains in supply chains has not been largely fulfilled is that the first adopters were guilty of installing the problem.”
The basic principles of Blockchain technology can create a more transparent and confident system. Decentralization ensures that there is no single entity that controls data. Stability guarantees that once the data is recorded, it cannot be changed or deleted.
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The benefits do not end there. The selective transparency allows the sharing of relevant information with stakeholders accredited without exposing sensitive commercial data. At the same time, smart contracts can automate operations and impose agreements.
In the end, encryption ensures the safety and security of the professor’s book. To go further, the incorporation of the Internet of Things sensors with Blockchain creates an indisputable scrutinous corridor from environmental conditions, which is very important to the safety of the cold chain.
Applications in the real world began to influence. In cooperation with IBM, Walmart uses the Hyperledger fabric to track pork in China and mango in the United States, which reduces tracking times from days to seconds. TE-Food and Provingance offers a Blockchain menu that improves food and transparency safety. Large food companies such as Nestlé and Carrefour are explored and platforms like Seafood Souq Blockchain to enhance the transparency of the supply chain.
Louis emphasized the typical shift:
“Traditional food supply chains work on a model of intermediaries, dependence on paper documents, third -party certificates, and the word of various actors along the chain. In contrast, it moves towards a system that relies on verified data.”
Carvalho explained the deterrent effect:
“The Blockchain system that has been well implemented can be a strong deterrent, as increasing vision and scrutiny makes fraudulent activities more dangerous and more likely to be exposed.”
Decentralization deal
Despite her promise, Blockchain is not a healing medicine. The ability to expand, cost, intercourse and integration with old systems constitute large barriers in front of adoption.
The problem of “garbage in garbage” remains. Blockchain can only ensure data safety as soon as they are onchain – but it cannot be responsible for the accuracy of the data that enters the chain.
Oracles and IOT devices that feed external data on Blockchain are vulnerable to tampering and technical failure. Entering manual data is also vulnerable to error or manipulation. The ideal tracking record does not prevent the presence of an oracle at risk from feeding the wrong data or the compatible party from entering the fraudulent details at the original point.
Privacy concerns, organizational uncertainty and the adoption of stakeholders are additional obstacles. Food supply chains include sensitive data frequented by companies in detection.
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Blockchains and transparent transparency provides solutions. These, however, require accurate governance and clear protocols to access data. The organizational frameworks are evolving, and the participation of the broad interests is necessary for success.
Loui calls for a pragmatic approach. “Start with clear use situations where Blockchain can provide a value that can be clarified, instead of trying a wide, unknown application,” Louis suggested. “Strong governance models, especially for consortium groups, are crucial.”
Carvalho emphasized the need for standards at the level of industry, training and cooperation:
“Technology alone is insufficient. Success depends on redesigning basic commercial operations, investing in training, changing management, enhancing a culture of cooperation and data exchange.”
The future of a synthesis of food safety
Blockchain rapprochement with the Internet of Things, AI and other innovations provides a promising path. Internet Things sensors provide data in the actual time on the product trip, which leads to a futile registry.
AI algorithms analyze large data collections to detect abnormal cases and improve logistical services. Rapid testing methods, smart packaging, robots and digital certificates enhance food safety.
The infrastructure that is built to fight fraud gets wider benefits. This includes improved operational efficiency, reduce food waste and sustainability demands.
Blockchain and their supplementary technologies have become attractive even for companies that are directly affected by fraud. Experimental projects resulted in valuable lessons. Industry federations are formed, and the standards began to appear.
Possible rewards extend beyond fraud to include improved food, reduce waste, consumer reinforced confidence, and a more sustainable, fair and flexible global diet.
The invisible fraud bite may be widespread, but it is indomitable. If it is published and integrated carefully, Blockchain may be a confidence layer that finally works to fix the food fraud problem of $ 50 billion.
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