Blockchain technology facilitates the audit and registration systems by integrating the management process into the supply chain without the need for an intermediary. Hence, there is no need for a third party between the producer and the market in the supply chain, and no commission is paid. At the same time, the profitability of the producer is increased, and the end consumer gets the product at a more affordable price. Moreover, the verification process provided by blockchain technology increases the reliability of agricultural foods.
With blockchain technology, the following processes are recorded in a secure
environment in an unalterable way.
• Selection of seeds and saplings
• Soil quality
• Type of fertilizer
• Environmental conditions in which agricultural products are grown
• Irrigation, growth and development processes
• Harvesting of agricultural products
• Saving the necessary information in the system
• A purchase request from the market to the manufacturer
• Smart contract between manufacturer and the market
• Encryption of data
• Transportation of products to the market
• Entry and signature of information into the system
• Broadcasting transactions on computer networks
• Confirmation of transactions
• Adding new blocks to the chain
• Distribution of the new blocks to the network
• Checking the signing of data
• Confirmation of data
• Customer's purchase of agricultural products
The following benefits is provided once the above data is processed within blockchain technology:
• The farmer records how much production and productivity he/she has under which conditions.
• Fertilizer and water amount variability is eliminated, resulting in a decrease in cost. • Thanks to the data in the system, the product being transferred from the farmer to the market is transported under suitable conditions and the possibility of wastage is reduced during transportation. Any additional costs are minimized.
• The end user follows all processes with transparency, from the producer to the moment when the product he/she buys comes to his/her table.
• Countries using blockchain technology in agriculture can easily see which products are grown and how much they are consumed on their own land. For products with high production, the next year's planning is done, and the supply-demand balance is created.
• It is planned to grow products imported from abroad instead of over-production of products with a supply-demand balance. Thus, current account deficits in agriculture in the country's economy are prevented.
• New cultivation areas are created by following the demands of other countries. It is guaranteed that the grown products are exported. It contributes to the country's economy by exporting.