The food production and supply industry is one of the most essential in the world. However, food safety has continued to be a big challenge and the cause of death for close to half a million people every year. Blockchain and the Internet of Things (IoT) are two technologies that are changing the game, and as one study found, they could be the key to global food safety.
The food value chain is worth $8.1 trillion and employs hundreds of millions of people. However, it continues to suffer from food safety issues. Studies show that over 600 million people fall ill from eating contaminated food, with 420,000 losing their lives every year.
Integrating blockchain technology and IoT can eliminate most of the points of failure in food safety, a new study has found. The study, conducted by Cointelegraph Consulting and VeChain, found that the value of IoT in food production will grow from $14 billion in 2020 to $25 billion in 2025 at a CAGR of 12%.
IoT will have several benefits to the food production industry. They include comprehensive monitoring through sensor technology, the automation of processes using robots, drones and other autonomous equipment and the rise of new business models.
Moreover, it will boost customer loyalty at a time when the consumers are very concerned about the food they consume.
Blockchain will also play a big part, with the study projecting the technology to support the tracking of at least 10% of the food industry products by 2023.
Blockchain has several advantages for the food industry, including a narrowed trust gap as a result of verified provenance; consumer engagement through a transparent feedback mechanism; government compliance in regards to traceability; and reduced information distortion across the supply chain.
The integration of blockchain and IoT will be a game changer. In the Bitcoin world, MetaStreme is already leading the pack, enabling automated micro-transactions between IoT devices. IoT devices handle massive data and only a scalable blockchain, such as Bitcoin SV, can handle it.
On the integration of blockchain in the food industry, SeafoodChain has been leading the pack. Developed by Norwegian company UNISOT, SeafoodChain recently launched its pilot phase recently as it seeks to disrupt the multi-billion dollar seafood industry.
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