BLOCK CHAIN TECHNOLOGY FOR AGRICULTURE

A Social Relevant Project report submitted to

JAWAHARLAL NEHRU TECHONOLOGICAL UNIVERSITY ANANTAPUR
ANANTHAPURAMU

in partial fulfilment of the requirements for

the award of the degree of
BACHELOR OF TECHNOLOGY
in
ELECTRONICS AND COMMUNICATION ENGINEERING

Submitted by
G.Naveen Kumar Reddy
(19121A0473)

Under the Esteemed Supervision of

Mr. . K.S.Chakradhar
Associate Professor, Department of ECE

Department of Electronics and Communication

Engineering
SREE VIDYANIKETHAN ENGINEERING
COLLEGE
(AUTONOMOUS)
Sree Sainath Nagar, A. Rangampet, Tirupathi - 517102.
(2019-2023)
 SREE VIDYANIKETHAN ENGINEERING
COLLEGE
(AUTONOMOUS)
Sree Sainath Nagar, A.Rangampet - 517 102

VISION
To be one of the Nation’s premier Engineering Colleges by achieving the highest order of
excellence in Teaching and Research.

MISSION
 To foster intellectual curiosity, pursuit and dissemination of knowledge.
 To explore students’ potential through academic freedom and integrity.
 To promote technical mastery and nurture skilled professionals to face competition
in ever increasing complex world.

DEPARTMENT OF ELECTRONICS AND COMMUNICATION ENGINEERING

Vision
To be a center of excellence in Electronics and Communication Engineering through
teaching and research producing high quality engineering professionals with values and
ethics to meet local and global demands.

Mission
 The Department of Electronics and Communication Engineering is established
with the cause of creating competent professionals to work in multicultural and
multidisciplinary environments.
 Imparting knowledge through contemporary curriculum and striving for
development of students with diverse background.
 Inspiring students and faculty members for innovative research through constant
interaction with research organizations and industry to meet societal needs.
 Developing skills for enhancing employability of students through
comprehensive training process.
 Imbibing ethics and values in students for effective engineering practice.
 B. Tech. (Electronics and Communication Engineering)

Program Educational Objectives

After few years of graduation, the graduates of B.Tech (ECE) will be:
PEO1 Enrolled or completed higher education in the core or allied areas of
. electronics and communication engineering or management.

PEO2 Successful entrepreneurial or technical career in the core or allied areas of

. electronics and communication engineering.

PEO3 Continued to learn and to adapt to the world of constantly evolving

. technologies in the core or allied areas of electronics and communication
engineering.

Program Outcomes

On successful completion of the Program, the graduates of B.Tech. (ECE) Program will be
able to:
PO1 Engineering knowledge: Apply the knowledge of mathematics,
science, engineering fundamentals, and an engineering specialization to the
solution of complex engineering problems.
PO2 Problem analysis: Identify, formulate, research literature, and analyze
complex engineering problems reaching substantiated conclusions using
first principles of mathematics, natural sciences, and engineering sciences.
PO3 Design/development of solutions: Design solutions for complex
engineering problems and design system components or processes that meet
the specified needs with appropriate consideration for the public health and
safety, and the cultural, societal, and environmental considerations.
PO4 Conduct investigations of complex problems: Use research-based
knowledge and research methods including design of experiments, analysis
and interpretation of data, and synthesis of the information to provide valid
conclusions.
PO5 Modern tool usage: Create, select, and apply appropriate techniques,
resources, and modern engineering and IT tools including prediction and
modelling to complex engineering activities with an understanding of the
limitations.
PO6 The engineer and society: Apply reasoning informed by the
contextual knowledge to assess societal, health, safety, legal and cultural
issues and the consequent responsibilities relevant to the professional
engineering practice.
PO7 Environment and sustainability: Understand the impact of the
professional engineering solutions in societal and environmental contexts,
and demonstrate the knowledge of, and need for sustainable development.
PO8 Ethics: Apply ethical principles and commit to professional ethics and
responsibilities and norms of the engineering practice.
PO9 Individual and team work: Function effectively as an individual, and
as a member or leader in diverse teams, and in multidisciplinary settings.
PO10 Communication: Communicate effectively on complex engineering
activities with the engineering community and with society at large, such
as, being able to comprehend and write effective reports and design
documentation, make effective presentations, and give and receive clear
instructions.
 PO11 Project management and finance: Demonstrate knowledge and
understanding of the engineering and management principles and apply
these to one’s own work, as a member and leader in a team, to manage
projects and in multidisciplinary environments.
PO12 Lifelong learning: Recognize the need for, and have the preparation
and ability to engage in independent and life-long learning in the broadest
context of technological change.

Program Specific Outcomes

On successful completion of the Program, the graduates of B. Tech. (ECE) will be able
to

PSO1.
Design and develop customized electronic circuits for domestic and
industrial applications.
PSO2. Use specific tools and techniques to design, analyze and synthesize wired
and wireless communication systems for desired specifications and
applications.
PSO3. Apply suitable methods and algorithms to process and extract information
from signals and images in Radar, Satellite, Fiber optic and Mobile
communication systems.
 Department of Electronics and Communication Engineering

SREE VIDYANIKETHAN ENGINEERING

COLLEGE
(AUTONOMOUS)
Sree Sainath Nagar, A.Rangampet - 517102.

Certificate
This is to certify that the Social Relevant Project Report entitled

BLOCK CHAIN TECHNOLOGY FOR AGRICULTURE

is the bona fide work done & submitted by

G.Naveen Kumar Reddy

(19121A0473)
in the Department of Electronics and Communication Engineering, Sree
Vidyanikethan Engineering College, A.Rangampet and is submitted to Jawaharlal
Nehru Technological University Anantapur, Ananthapuramu in partial fulfilment
of the requirements for the award of degree of Bachelor of Technology in Electronics
and Communication Engineering during 2019-2023.

Supervisor Head of the Department

Mr.K.S.Chakradhar Dr. N. Gireesh, M.Tech., Ph.D.
Associate Professor, Dept. of ECE Professor & Head of Dept. of
ECE

Examiner-1 Examiner-2
 ACKNOWLEDGEMENTS

We are deeply indebted to the supervisor, Mr.K.S.CHAKRADHAR , Associate

Professor of Department of Electronics and Communication Engineering for
valuable guidance, constructive criticism and keen interest evinced throughout the
course of our social relevant project work. We are really fortunate to associate
ourselves with such an advising and helping guide in every possible way, at all
stages, for the successful completion of this work.

We express our deep sense of gratitude to Dr. N. GIREESH, M.Tech., Ph.D.,

Professor and Head of the Department of Electronic and Communication
Engineering for his valuable guidance and constant encouragement given to us
during this social relevant project and the course.

We express gratitude to our principal Dr. B. M. SATISH, Ph.D., for supporting us

in completion of our social relevant project work successfully by providing the
facilities. We are pleased to express our heart full thanks to our faculty in
Department of ECE of Sree Vidyanikethan Engineering College for their moral
support and good wishes.

Finally, we have a notation to express our sincere thanks to friends and all those
who guided, inspired and helped us in the completion of our social relevant project
work.
G.Naveen Kumar Reddy(19121A0473)
K.Niranjan Reddy(19121A0488)
L.Keerthi Priya(19121A04B6)
L.Vignesh Reddy(19121A04B7)
L.Sandhya(19121A04B8)
 ABSTRACT
Blockchain technology is defined as a decentralized,distributed ledger that
records the provenance of a digital asset.By inherent design,the data on a blockchain
is unable to be modified,which makes it a legitimate disruptor for industries like
payments,cybersecurity and distributed software architecture and advanced
computing,blockchain can change the way information is exchanged between actors
in the chain.

By using blockchain technology we can track the food supply chain from
producer to consumer.As block chain is trusted way of storing data,it facilities the use
of data-driven technologies to make farming smarter.In addition,jointly used with
smart contracts,it allows timely payments between stakeholders that can be triggered
by data changes appearing in the ecosystem of agriculture products,e.g.,increasing
transparency of food quality control,provenance traceability,improvement of contract
exchanges,and transaction efficiency.As multiple untrusted parties,including small-
scale farmers, food processors, logistic companies,distributors and retailers,are
involved into the complex farm-to-fork pipeline,it becomes vital to achieving an
optimal trade-off between the efficiency and the integrity of the agricultural
management systems.This can be achieved using blockchain technology.
 CONTENTS

Page no.
Acknowledgements …vii

Abstract …viii

List of Tables …x

List of Figures …xi

Problem statement …xii

Chapter 1: Introduction …01

1.1 Values levers …06

1.2 Blockchain Adoption …11
1.3 Enabling Technology …13
1.4 Investing for the future …14

Chapter 2: Literature Review …15

2.1 Traceability …15

2.2 Architecture and Security …17
2.3 Information Systems …24

Chapter 3: Tools Required …24

Chapter 4: Working …32

4.1 Blockchain privacy and security …36
4.2 Applications …36

Chapter 5 : Advantages and Disadvantages …40

Chapter 6: Conclusion and References …41

 LIST OF TABLES

Tables Description Page

no.
Table 1.1 Organic Traceability .. 17
 LIST OF FIGURES
Figure Description Page
s no.

Figure 1.1 Four key features

Figure1.2 ..04
Figure 1.3 Conceptual framework of food traceability
Figure 1.4 system ..09
Figure 2.1 Blockchain project implementation
Figure 2.2 process ..11
Figure 2.3 Areas of complexity and findings ..13
Figure 2.4 Traceability system product and information flow ..16
Figure 2.5 Centralized and distributed system
Figure 2.6 architecture ..18
Figure 2.7 Decentralized system
Figure 3.1 architecture ..18
Figure 4.1 Blockchain
Figure 4.2 elements ..19
Figure 4.3 Blockchain
architecture ..20
(left) public
permissionless ..21
Proposed iot blockchain Network ..23
Etereum Blockchain network ..26
Smart agriculture ..39
Blockchain working ..42

Food supply chain ..43

 PROBLEM STATEMENT

Fjord Trends recently predicted that “making a difference will soon

become a key point of differentiation” in the ethics economy. In fact, “the potential
for ethics as a business metric is already the topic of some industry debate.”

Current and future state of food supply chain management:

As indicated by a growing number of successful pilot projects, blockchain technology

can improve the management of supply chain transactions by providing visibility and
reliability of transaction information among participating parties. The certainty,
transparency, tamper-evidence, and trust that blockchain provides can help to make
transactional data easier to share and may provide a platform to promote more
responsible practices across the supply chain participants through greater
transparency, thus making it easier to hold parties accountable. For example,
BeefLedger has combined blockchain with Internet of Things (IoT), analytics, smart
contracts, and digital tokens to track provenance, streamline payments, mitigate fraud
risk, and provide transparency in sustainability in cattle ranching in Australia.

Supply Chain Management:

Due to rapid advancements in technology and the dynamic international business
environment, supply chains are evolving into “supply chain networks,” a more
integrated form of supply chain that has arisen due to widespread technologies, such
as the Internet.5 Companies recognize that to succeed in the digital economy, they
must manage the integration of business, technology, people, and processes not only
within the enterprise but also across extended enterprises.

Companies are increasingly looking toward adopting Supply Chain

Management (SCM) systems that enable inter-enterprise cooperation and
collaboration with suppliers, customers, and business partners.7 Although there are
potential benefits for achieving competitive advantage, companies also face
significant challenges in digitizing their supplychain such as:

• Coordinating process and digital transformation across multiple, disbursed, and

often disconnected supply chain actors.

• Lack of connectivity, particularly with upstream suppliers.

• Onerous and costly data reconciliation processes.

• Ineffective solutions for handling large amounts of disparate and potentially

inconsistent data.

• Making relevant parts of the SCM system and the data it captures available to be
shared between different actors to foster cooperation and collaboration across the
entire value chain in a secure and trusted way.

INTRODUCTION
At its core, blockchain is a new type of data system that maintains and records data in
a way that allows multiple stakeholders to confidently share access to the same data
and information .

A blockchain is a type of distributed ledger technology (DLT), meaning it is a data

ledger that is shared by multiple entities operating on a distributed network. This
technology operates by recording and storing every transaction across the network in
a cryptographically linked block structure that is replicated across network
participants. Each block has a hash, which is the output of an algorithm that turns the
contents of the block into a random mix of letters and numbers. By mathematically
validating that the hashes match the expected values, users can trust that the data has
not been tampered with. Relevant actors or organizations participating in the
distributed network can serve as “nodes” to participate in consensus, a process that
keeps each blockchain node in sync and handles the addition of new blocks. There are
different mechanisms that could be used to establish consensus that have trade-offs
between confidentiality, throughput, and security, and vary depending on the
implementation and use case.

Public blockchains use complex algorithms to reach consensus among network

participants but may not be suitable for companies in many cases, as they have
limited privacy protection compared with private blockchains. Private blockchains use
access control layers to specify the network participants and commonly use high-
throughput consensus mechanisms.

Depending on the type of blockchain platform being used, blockchains can be

designed to provide different levels of access to the data on the blockchain (“on-
chain” data). This means it can provide increased transparency to the data, while
upholding privacy where needed. For instance, a blockchain could enable patients to
control their own health data and choose who can access their health data.

To protect sensitive information, it is recommended to store this information

“off-chain”: rather than being stored and replicated across nodes within the
blockchain structure (“on-chain”), data would be stored elsewhere, separate from the
blockchain. At its core, blockchain is a new type of data system that maintains and
records data in a way that allows multiple stakeholders to confidently share access to
the same data and information.

Additionally, most blockchain platforms cannot efficiently store large volumes

of data on-chain. Only the minimum data elements needed to enable a transaction
should be stored on-chain to comply with storage limitations and privacy needs.
Information that could be stored on the blockchain might include:

• Transaction metadata (such as time stamps, actor/user IDs, transaction types, etc.).

• Pointers to the actual data that is stored off-chain (e.g., confidential compliant
database), which would only be accessible by authorized users.

• Access Control List, listing actors who have been provided access to read or update
data that resides at the pointer.

Using blockchain in this way establishes trust in the validity of the data and
improves the ability to share the data across silos while keeping sensitive data
protected. But in terms of its potential, blockchain is more than just a technology. It is
a critical enabler of innovation as it acts as a catalyst for changing the way that
existing trading partners in a supply chain work together.
 Blockchain makes it possible for a system of independent actors—producers, brokers,
transporters, processors, wholesalers, retailers, and consumers—to share the same
data between the different actors without the actors having to directly interact and
build a direct relationship with one another.

In doing so, it offers the potential to disrupt and transform existing business models:
instead of the various processes associated with sending, validating, and reconciling
data among different parties, blockchain can be used to reliably share information
among multiple selected parties while still allowing parties the ability to control who
gets to see what data. Blockchain introduces a means to share data across multiple,
possibly mistrustful, parties without the necessity for an intermediary, reducing the
need to revalidate and reconciliate data.
Why blockchain now?

While other technology options exist to help manage supply chains, blockchain
provides another arrow in the quiver, one that can bring together different parties
that have not directly established trusted relationships with one another through the
transparency it provides and its tamper-evident nature. Blockchain stores every
transaction or exchange of data that occurs in the network, potentially reducing the
need for third parties and/or intermediaries by providing a means by which all parties
in the network may share access to the same data, including what is added to the
data, by whom, chronologically. Data cannot be removed. By enabling each party to
see the same data, in near real time, and assure that ‘you see what I see’ from a data
perspective, blockchain can help eliminate complex and costly data reconciliation
required by most systems in the world today.

Blockchain alone does not solve the human challenges at hand or the need for digital
transformation, but it can be a powerful prompt for new ways of working, enabling
greater accountability and trust when implemented effectively. Additional value
drivers for blockchain may include:

• Efficiency gains :Substantial efficiency gains expected in reducing manual processes

for cross- party data validation and reconciliation and reducing repetition.

• Brand enhancement : Improved trust in product provenance and secure consumer

confidence for quality, societal, and environmental impacts.

• Revenue growth: Market penetration and new product/markets development.

• Risk reduction: Reduced risk of counterfeit products and mitigated risk from lower-
quality components.

• Cost savings : Improved financing and credit rates due to greater transparency and
certainty of movements of products and savings through streamlined operations.

• Innovation drive : Leverage innovation to increase efficiency and change the ways of
working.

When considering whether blockchain is feasible and appropriate for a specified use
case, various costs and trade-offs should be considered. Blockchain is not a silver
bullet and some supply chains may be better served through other existing
technologies and solutions. Further, different stages of the supply chain might be
more suitable and feasible for leveraging blockchain than others. A few key trade-off
considerations include:

• Value for each actor

• Availability of supporting infrastructure, i.e., tools, and enabling technology

• Level of digital maturity of various actors

• Level of connectivity

• Level of data quality and standardization

• Incentive for different actors

• Level of collaboration/mistrust between partners

• Investment required (cost to set up, digital transformation, and technology

operations) Further detail is provided throughout the report on the benefits and
trade-offs for the four selected commodities.

VALUES LEVERS
SPECIFIC TO COMMERCIAL FOOD SUPPLY CHAIN COMPAINES

While many industries, organizations, and companies are experimenting with

blockchain and its applicability to their businesses, many are also beginning to
explore the collaborative potential for enhancing the workflows in their supply
chains.

They recognize that existing and new ways of operating enabled by blockchain could
one day become commonplace in supply chain ecosystems, allowing for increased
transparency of products, transactional efficiency, reduced costs, and fewer
redundancies. Below is a list of three main supply chain management challenges that
businesses seek to address:

CHALLENGE 1

Coordinating across multiple, disbursed and often disconnected supply chain actors

Complex, global supply chains, such as the ones in this report, involve many
independent actors—producers, brokers, transporters, processors, wholesalers,
retailers, and consumers—who may not trust each other. This can greatly limit the
level of collaboration. For example, these actors may be hesitant to share data and/or
invest in a direct relationship or intermediaries that would allow for sending,
validating, and reconciling data between different parties. Business models that
provide flexibility in coordinating across these many actors are required.

CHALLENGE 2

Lack of product traceability

A major challenge in traceability is product information ambiguity, resulting from

logging vague and uncertain product characteristics that are hard to trace. This may
be due to poor and predominantly manual record keeping, supply chain complexity,
and identification lag time. Particularly challenging is when products are blended or
comingled or when a raw material is used to create a semi-finished or finished food
product. Traceability problems can also arise when products change identifiers or
possession, are repackaged or cross borders when both naming and labeling methods
vary. In the case of the four commodities in this study, we have observed several
bottlenecks that make end-to-end traceability more challenging. For example, the
limited use of digital records, lack of standardization, and costly reconciliation appear
in all four commodities

VALUE 1

Transparency and auditability

The lack of consistent data and digital capabilities makes sharing information across
the supply chain difficult. Blockchain can help promote transparency and help
streamline the process of sharing information. Because each actor can upload
information and data about their products, this transparency also improves
accountability and trust. Blockchain can also show near real-time updates about the
product. Depending upon the governance and policies of the network, trading
partners can see where the product is, who made it, how it is made, and when it is
expected to be delivered, using a single platform.

The enhanced communication through a visibly streamlined process has shorter lead
times, reduced redundancy, and fewer delays. A blockchain-based solution for
information sharing can provide more direct visibility on whether contracts and
agreements are adhered to and properly documented. Since each transaction is
recorded in sequence, blockchain provides a permanent audit trail that can verify a
product’s authenticity and trace it through its chain of custody. Much of the
complexity, costs, and inefficiencies of current processes could be reduced through
blockchain-enabled systems, effectively “closing the hall of mirrors.”
VALUE 2

Product traceability

At the time of this study, there was limited widespread adoption of traceability
software within the four commodity supply chains covered. That said, companies are
increasingly investing in automated food safety software that allows them to see
where products are and where they came from within the supply chain. Automated
food safety software also helps with U.S. Food and Drug Administration (FDA)
compliance requirements in the event of a recall, allowing them to more quickly
access data and detect a problem, including lot codes, production and expiration
dates, and product order numbers. Blockchain can be a significant gamechanger here
by enabling interoperability between these various traceability solutions without the
need to replace the applications or moving onto a single solution for all entities on the
supply chain. This is highly valuable when there are multiple entities on a supply chain
that do not need or want to directly integrate with each other or be impacted by
another entity’s technology and/or business decisions. Blockchain enables data
sharing without the need to change the systems that each entity has and thus
enabling greater traceability of products across multiple partners, locations, and
facilities. Each stakeholder can view the same data on a product’s lifecycle.

Fig:Conceptual framework of food traceability system

VALUE 3

Security and trust

Though the initial data accuracy is still dependent on the person or the device entering
the data correctly into system, leveraging blockchain means that it is easier to identify
an issue after the initial data entry. Blockchain operates by recording and storing every
transaction chronologically across the network in a cryptographically linked block
structure that is replicated across network participants. Through its inherent
structure, blockchain can enable trust in the source of data coming from multiple data
streams, providing confidence and visibility that the data has not been tampered with
or altered inappropriately.

supply chains by reducing the need for intermediaries and allowing organizations to
connect with each other directly. It also unlocks the potential to more efficiently share
data, such as inventories, which could enhance a company’s ability to manage
multiple suppliers and unique contracts, reducing their dependency on single entities
and lowering overall risk. Additionally, blockchain’s potential for shared inventories
and automated purchase orders could accelerate product movements through the
supply chain, reducing risks of perishability and improving the ability to more
efficiently match consumer demand. And finally, performance data collected on a
blockchain can help reduce risk and allow suppliers to demonstrate their performance
to potential clients.

VALUE 4

New channel of customer engagement

By enabling access to the same set of data, blockchain can provide greater
transparency to multiple stakeholders in the supply chain. For the smallholder farmer
or producer, it can provide greater visibility into demand upstream for access to better
prices, better production control (to avoid under/overproduction), or potentially
direct income. Suppliers can use this information to view items in the production
process to build a better delivery time for their store. This gain can improve
communication and boost customer satisfaction and retailers may choose to engage
customers by providing access to some information on the blockchain. For the
consumer, this can provide increased visibility into product origin, producer, quality,
and the like, which in turn can build loyalty and contributes to a stronger business
relationship. This could be facilitated, for example, by a mobile application that allows
a consumer to scan a product or QR code to view such information.

VALUE 5

Contract management and supplier due diligence

By automating certain types of contracts, blockchain can simplify and expedite

contract management for modern supply chains by reducing the need for
intermediaries and allowing organizations to connect with each other directly. It also
unlocks the potential to more efficiently share data, such as inventories, which could
enhance a company’s ability to manage multiple suppliers and unique contracts,
reducing their dependency on single entities and lowering overall risk. Additionally,
blockchain’s potential for shared inventories and automated purchase orders could
accelerate product movements through the supply chain, reducing risks of
perishability and improving the ability to more efficiently match consumer demand.
And finally, performance data collected on a blockchain can help reduce risk and allow
suppliers to demonstrate their performance to potential clients.

BLOCKCHAIN ADOPTION

The successful application and adoption of blockchain agriculture supply chain

traceability must provide value and benefits to each actor in the supply chain.

The value that such traceability brings to each of the actors will be different
and needs to align to each actor’s specific part of the supply chain to increase
incentives, promoting greater traceability. A blockchain traceability solution
requires robust governance, strong coordination, and a comprehensive
technical and functional strategy that works for a broad set of actors in the
supply chain and a strong supporting ecosystem.

This section identifies the key components of implementing a blockchain

traceability solution:
 Figure 2: Blockchain project implementation process

A Feasible and Valuable Use Case:

Blockchain presents a tremendous opportunity to transform the food sector

and enable environmental protection.However, it may not be appropriate for
all commodities, supply chains, and use cases.It is important to assess the
feasibility of each use case to determine suitable candidates. The minimum
criteria for a valuable and achievable blockchain system should include:

Market feasibility and value:

The appropriate demand and market conditions are in place to enable
participants in the market to be interested and beneficial to participate. The
solution must provide demonstrable business value and incentives for each
participant in the blockchain ecosystem.

Technical feasibility and value:

The technology is a good fit for the industry and its actors’ needs; these needs
should be addressed directly through the key benefits that blockchain
technology specifically brings, including its ability to allow multiple parties
access to the same data.
 Enabling Technology:

It is at the base of the pyramid where the lack of transparency produces several
issues— from availability and reliability of information on the product and
farming practices, to labor management, to payments, and each has significant
impact further along the supply chain. While blockchain alone cannot solve the
existing manual processes, the digital divide, the lack of access to connectivity,
nor the quality of the initial set of data input, it can help with transparency
and ability to share data across different parties in a consistent and integral
manner. To reap the benefits of blockchain in agriculture and aquaculture, a key
dependency is digital transformation of the industry, especially for base-of-the-
pyramid producers.As such, other enabling technologies and capabilities, which
together make up the larger ecosystem, must be considered

Several existing technologies are expected to interface with blockchain

solutions:

• Enterprise resource management(ERP) systems

• Electronic ordering and payment systems

 • Invoicing systems

• Logistics systems

• Order management systems

• Traceability systems

Investing for the future

Investments in traceability, including traceability technology, have been limited

to larger operations, particularly those that are either vertically integrated or
have less complex supply chain systems. Aside from adoption, value delivery
and utility, like any digital transformation or adoption of traceability
technology, the long-term success of blockchain solutions and ecosystems
across geographies is also subject to socio-economic and regulatory factors,
especially in regions experiencing instability and/or lacking sophisticated
systems and frameworks.

It is important to address the key drivers for investment in a blockchain-based

traceability system:

A clear and compelling value proposition for traceability and sustainable production.

Practical and comprehensive standards for traceability and sustainable

production.

Cost-effective enabling processes and technologies.

Appropriate levels of communication and coordination across the supply

chain.

Appropriate incentives for participants to join the network.

LITERATURE REVIEW:

The literature was classified under four head namely:

1.Traceability

2.Architecture and Security

3.Information Systems

1.TRACEABILITY:

Traceability is a system in which fruits and vegetables can be traced fram a field to the
buyer by lot through unique codes….Each farm should have a traceability system in
place that allows the grower to track the produce from the field(one step back) to the
buyer(one step forward).

Organic food supply chain companies aiming to improve food traceability with
blockchain face two key decisions, depending on the characteristics of the organic
value chain, regarding.

optimizing chain partner collaboration and the selection of which data to

capture in the blockchain. Other challenges were data confidentiality, validation of
data inputs, and interoperability. Easy verification of certification data, accountability,
improved risk management, insight into trade transactions, simplified data collection
and exchange, and improved communication account for the benefits. Regardless of
what drives companies toward whole-chain traceability, for example, customer
satisfaction, it does not necessarily require blockchain technology. Blockchain does
enable faster food traceability, which is expected to be more applicable to a complex
food supply chain.

Consumers, who buy organic food, have expectations about its

quality and rely on certifying organizations to verify this quality as well as to provide
information about the origin of organic products. However, organic food traceability
knows several issues, such as problems with organic labeling, certification fraud, and
concerns about transparency of food information.
Literature Review of Traceability:

Traceability, also known as the principle of “one step back one step forward”.

Fig: Traceability system product and information flow.

Considering all the above, food product traceability contains information about
the food ingredients, the food sources, processing as well as transportation and
storage conditions. An ideal agriculture traceability system would also contain
information about each and every ingredient of the final product. Thus, to be
considered effective, a traceability system must contain information, both
quantitative and qualitive, about the final food product and its origin. According to A.
Corallo et al., there are four major questions that need to be answered regarding
the development of a traceability system.

Organic Traceability:

To understand the impact on traceability in the European organic food supply chain,
the organic traceability issues from Organic Food Traceability: Types and Issues were
also used to analyze the use cases 
2.ARCHITECTURE AND SECURITY:

Blockchain consists of any number of nodes, which individually has distributed

ledgersthat allow multiple nodes to access and update a single edition of a ledger
along withshared control maintenance. The nodes in the Blockchain contain a
distributed ledgerthat can record transactions between the nodes in a secure and
permanent way. Bysharing the databases between the nodes, blockchain technology
avoid the existenceof third party intermediate that were previously required to act as
trusted agents toauthenticate, trace, store and synchronize the transactions. By
progressing the tech-nology from centralized systems to a decentralized and then to
distributed networksystem, blockchain successfully release data from the ledger that
was previouslykept in secured way as shown below .Blockchain technology can
beused in business networks. A business network portrays any group of association
orindividuals that connect with a desire to transfer or share the assets. Those assets
can betangible, such as food, raw materials, equipment’s or manufactured good or
digital such as music or data.
These assets can be transferred between members, by trackingthe items using a
common, shared distributed ledger that is distributed across thebusiness network,
assets can be transferred between members, with each memberhaving a record of the
transaction and access to the latest version of the ledger.Blockchain creates belief
across a business network by the combination of a distributedledger, smart
contracts ,and consensus . The distributed ledger contains thecurrent state of assets
and the history of all transactions. Transactions can only beadded to the distributed
ledger. Once the transaction is added to the distributed ledger, it cannot be removed
from it. All the transaction in the distributed ledger isencrypted so that no
unauthorized users can be tampered with it. The blockchain alsoalters the distributed
ledger and it is immutable, allowing the distributed ledger to bethe source of
exactness, proof within the network.
Elements of Blockchain:

The Merkle root is created in the way that is shown in the tree formation. The hashof
each transaction is formed. This process is further continued until the final trans-
actions. As new transactions are added, the Merkle hash root varies with the new
hashvalue and is highly secure. The key elements of blockchain is shown (see Fig).

Fig:Blockchain elements

BLOCKCHAIN ARCHITECTURE:

The blockchain architecture allow a distributed network of nodes to reach consumers

without the need for central authentication.
 Fig:Blockchain Architecture

The categories of Blockchain architecture are,

1.Public Permissionless Blockchains-where any users can participatein blockchain

network

2.Private Permissionless Blockchains-where participants must be authorized

 Fig:(Left) public permissionless
(Right) private permissioned blockchains
Proposed Design of IOT Blockchain Based smart Agriculture

We attempt to design an architecture for IOT based blockchain for implementing the
smart agriculture.In smart Home ,the nodes involved in the blockchain receives the
information from the sensors that are connected to the things involved in the smart
agriculture monitoring process.The nodes involved in the IOT Blockchain based Smart
Agriculture are as follows.

 Temperature Sensor Node

 Pressure Sensor Node
 lluminance Control Node
 Wind Speed,Air Control Node
 CO2,Pressure Control Node
 Moisture Water Control Node
 Smoke,Fire Control Node
 PH Control Node
Proposed Architecture of Proposed IoT Blockchain Based Smart

things involves in the Smart

Agriculture monitoring process
[10, 11]. The nodes
involved in the IoT Blockchain
based Smart Agriculture are as
follows and is shown
(see Fig. 7). The node components
are IoT Blockchain based Smart
Agriculture are as
follows,
• Temperature Sensor Node
• Pressure Sensor Node
• Illuminance Control Node
• Wind speed, Air Control Node
• CO2, Pressure Control Node
• Pollution Control Node
• Moisture Water Control Node
• Smoke, Fire Control Node
• PH Control Node
3.1 Proposed Architecture of
Proposed IoT Blockchain Based
Smart
The overall architecture is
designed for IoT Blockchain based
Smart Agriculture and is
shown (see Fig.
The overall architecture is designed for IOT Blockchain based Smart Agriculture and is
shown (see Fig).
things involves in the Smart
Agriculture monitoring process
[10, 11]. The nodes
involved in the IoT Blockchain
based Smart Agriculture are as
follows and is shown
(see Fig. 7). The node components
are IoT Blockchain based Smart
Agriculture are as
follows,
• Temperature Sensor Node
• Pressure Sensor Node
• Illuminance Control Node
• Wind speed, Air Control Node
• CO2, Pressure Control Node
• Pollution Control Node
• Moisture Water Control Node
• Smoke, Fire Control Node
• PH Control Node
3.1 Proposed Architecture of
Proposed IoT Blockchain Based
Smart
The overall architecture is
designed for IoT Blockchain based
Smart Agriculture and is
shown (see Fig.
things involves in the Smart
Agriculture monitoring process
[10, 11]. The nodes
involved in the IoT Blockchain
based Smart Agriculture are as
follows and is shown
(see Fig. 7). The node components
are IoT Blockchain based Smart
Agriculture are as
follows,
• Temperature Sensor Node
• Pressure Sensor Node
• Illuminance Control Node
• Wind speed, Air Control Node
• CO2, Pressure Control Node
• Pollution Control Node
• Moisture Water Control Node
• Smoke, Fire Control Node
• PH Control Node
3.1 Proposed Architecture of
Proposed IoT Blockchain Based
Smart
The overall architecture is
designed for IoT Blockchain based
Smart Agriculture and is
shown (see Fig.
things involves in the Smart
Agriculture monitoring process
[10, 11]. The nodes
involved in the IoT Blockchain
based Smart Agriculture are as
follows and is shown
(see Fig. 7). The node components
are IoT Blockchain based Smart
Agriculture are as
follows,
• Temperature Sensor Node
• Pressure Sensor Node
• Illuminance Control Node
• Wind speed, Air Control Node
• CO2, Pressure Control Node
• Pollution Control Node
• Moisture Water Control Node
• Smoke, Fire Control Node
• PH Control Node
3.1 Proposed Architecture of
Proposed IoT Blockchain Based
Smart
The overall architecture is
designed for IoT Blockchain based
Smart Agriculture and is
shown (see Fig.
things involves in the Smart
Agriculture monitoring process
[10, 11]. The nodes
involved in the IoT Blockchain
based Smart Agriculture are as
follows and is shown
(see Fig. 7). The node components
are IoT Blockchain based Smart
Agriculture are as
follows,
• Temperature Sensor Node
• Pressure Sensor Node
• Illuminance Control Node
• Wind speed, Air Control Node
• CO2, Pressure Control Node
• Pollution Control Node
• Moisture Water Control Node
• Smoke, Fire Control Node
• PH Control Node
3.1 Proposed Architecture of
Proposed IoT Blockchain Based
Smart
The overall architecture is
designed for IoT Blockchain based
Smart Agriculture and is
shown (see Fig.
Fig.Proposed IOT blockchain based

smart agriculture system architecture

3.INFORMATION SYSTEM:

Blockchain is a system of recording information in a way that makes it difficult or

impossible to change, hack, or cheat the system. A blockchain is essentially a digital
ledger of transactions that is duplicated and distributed across the entire network of
computer systems on the blockchain.

TOOLS REQUIRED:

 Solidity
 Geth
 Mist
 Solc
 Remix
 Metamask
 Truffle
 Ganache
 Blockchain Testnet
 Blockchain-as-a-Service

1.Solidity:
Solidity is, undoubtedly, one of the most popular languages used by Blockchain
Developers. Influenced by C++, Python, and JavaScript, it was designed to target the
Ethereum Virtual Machine(EVM). Solidity is statically typed, supports inheritance,
libraries, and complex user-defined types.

Solidity supports the OOP paradigm and cis most commonly used for writing smart
contracts. With Solidity, Blockchain Developers can write applications that can
execute self-enforcing business logic embodied in smart contracts, thereby leaving a
non-repudiable, and authoritative record of transactions. This comes in handy for
creating contracts for voting, crowdfunding, multi-signature wallets, and blind
auctions.
2.Geth:

Geth is an Ethereum node implementation built using the Go programming language.

It is available in the three interfaces, including JSON-RPC server, command-line, and
interactive console. Geth can be leveraged for Blockchain development on all three
major operating systems – Windows, Mac, and Linux. 

Geth is used for a host of different tasks on the Ethereum Blockchain, such as
transferring tokens, mining ether tokens, creating smart contracts, and to explore
block history. After installing Geth, you can either connect to an existing Blockchain or
create your own. The good thing is that Geth simplifies things by automatically
connecting to the Ethereum main net.

Sync modes :

You can start Geth in one of three different sync modes using the --syncmode
"<mode>" argument that determines what sort of node it is in the network.

These are:

Full: Downloads all blocks (including headers, transactions, and receipts) and
generates the state of the blockchain incrementally by executing every block.

Snap (Default): Same functionality as fast, but with a faster algorithm.

Light: Downloads all block headers, block data, and verifies some randomly.
3.Mist:
Mist is the official Ethereum wallet developed by the creators of Ethereum. When it
comes to Ethereum, before you can start using the platform, you must have a
designated place where you can store your Ether tokens and execute your smart
contracts. It is available for Windows (both 32- and 64-bit), Mac, and Linux (32- and
64-bit).

While Mist is particularly suitable for deploying smart contracts, you must
remember that it is a full node wallet – you have to download the entire Ethereum
blockchain, which is larger than 1TB. Another critical thing to keep in mind is to
remember your Mist password since you can never change – it is a one-time setup
ting.

4.Solc:

Solc (Solidity Compiler) is a Solidity command-line compiler written in C++. Its primary
purpose is to convert Solidity scripts into a more readable format for the Ethereum
Virtual Machine. While Solidity is a slimmed-down, loosely-typed language with a
syntax similar to JavaScript, the smart contracts written in it need to be converted to a
format that can be easily read and decoded by the EVM. That’s where Solc comes into
the scene. 

There are two types of Solc – Solc (coded in C++) and Solc-js (it uses Emscripten
to cross-compile from the Solc source code from C++ to JavaScript). Solc comes
natively with most of the Ethereum nodes. It can be used for offline compiling, as well.

5.Remix:

Remix IDE is a browser-based Blockchain tool used for the creation and deployment of
smart contracts. Written in Javascript (so it can be accessed via any modern browser!),
Remix can be used for writing, testing, debugging, and deploying smart contracts
written in Solidity. It can be used either locally or in the browser.

A part from having excellent documentation, Remix can seamlessly connect

to the Ethereum blockchain through Metamask.
6.Metamask:
Metamask is a wallet designed to function that acts as a bridge between Ethereum
Blockchain and a browser (Chrome or Firefox). Essentially, it acts as a browser
extension. Metamask offers a software platform that allows you to serve Ether and
other ERC-20 assets while also letting you interact with Ethereum Dapps. The best part
– you can do so right from your browser. 

Metamask can be linked with Shapeshift and Coinbase to sell and buy ETH and
ERC20 tokens. It can also save keys for ERC20 tokens and Ether. Since it can interact
with different Ethereum test networks, it makes an ideal wallet for Blockchain
Developers. Once you installed the app in your browser, you have a built-in Ethereum
wallet ready to be used. 

7.Truffle:

Truffle is an Ethereum Blockchain framework designed to create a development

environment for developing Ethereum-based apps. It comes equipped with a vast
library that provides custom deployments for writing new smart contracts, develop
complex Ethereum dApps, and help tackle other challenging requirements of
Blockchain development.

Truffle can perform automated contract testing using Chai and Mocha. It can also
enable smart contract development, including linking, compilation, and deployment.
Plus, it offers a configurable build pipeline for performing custom build procedures. 
8.Ganache:
Ganache is a Blockchain tool from the Truffle Suite that allows you to create your own
private Ethereum blockchain to test dApps, execute commands, and inspect state
while taking full control of the operation of the chain.  

The greatest feature of Ganache is that it allows you to perform all the actions
you would otherwise perform on the main chain, without incurring the cost for the
same. Blockchain Developers use Ganache to test their smart contracts during
development since it comes with many convenient options like advanced mining
controls and a built-in block explorer.
9.Blockchain Testnet

When talking about Blockchain development, we cannot stress enough on the

importance of Blockchain Testnet. A Blockchain Testnet allows you to test dApps
before making them live. Each blockchain solution has its unique Testnet, and it is
highly recommended that you use the respective Testnet for the optimal result. There
are three kinds of Blockchain Testnets – Public Test, Private Test, and GanacheCLI. 

Testnets are extremely useful as it lets you test your dApps for bugs and
errors without spending tons of cash or resources. For instance, Ethereum uses gas as
the fuel for performing different operations. Spending on gas every time you need to
do a test run can become a substantial financial burden. Thanks to Testnets, testing
becomes feasible. 

10.Blockchain-as-a-Service (BaaS)

Since it is not practical (nor financially viable) for a company to implement a full end-
to-end blockchain solution, it gave rise to the concept of BaaS. BaaS is modeled to
function similarly as a SaaS model. It lets you leverage cloud-based solutions to build,
host, and use your custom-made Blockchain apps, smart contracts, and functions on
the Blockchain, with the cloud-based service provider handling and managing all the
essential tasks/functions required to keep the Blockchain infrastructure operational
and agile. 

BaaS can be a convenient tool for individual entrepreneurs or companies who

wish to adopt the Blockchain tech but haven’t been able to do so due to operational
overhead and technical complexities.

Features of Blockchain -as-a-Service(BaaS)

Some of the most common features offered in Blockchain-as-a-Service platforms are

as follows:

 Platform architecture management

 modular, preconfigured networks and infrastructure

 Easy setup workflow

  Middleware for monitoring & development for app building

PROGRAMING CODE:
# Python program to create Blockchain
 
# For timestamp
import datetime
 
# Calculating the hash
# in order to add digital
# fingerprints to the blocks
import hashlib
 
# To store data
# in our blockchain
import json
 
# Flask is for creating the web
# app and jsonify is for
# displaying the blockchain
from flask import Flask, jsonify
class Blockchain:
   
    # This function is created
    # to create the very first
    # block and set it's hash to "0"
    def __init__(self):
        self.chain = []
        self.create_block(proof=1, previous_hash='0')
 
    # This function is created
    # to add further blocks
    # into the chain
    def create_block(self, proof, previous_hash):
        block = {'index': len(self.chain) + 1,
                 'timestamp': str(datetime.datetime.now()),
                 'proof': proof,
                 'previous_hash': previous_hash}
        self.chain.append(block)
        return block
       
    # This function is created
    # to display the previous block
def print_previous_block(self):
        return self.chain[-1]
       
    # This is the function for proof of work
    # and used to successfully mine the block
    def proof_of_work(self, previous_proof):
        new_proof = 1
        check_proof = False
         
        while check_proof is False:

            hash_operation = hashlib.sha256(
                str(new_proof**2 -
previous_proof**2).encode()).hexdigest()
            if hash_operation[:5] == '00000':
                check_proof = True
            else:
                new_proof += 1
                 
        return new_proof
 def hash(self, block):
        encoded_block = json.dumps(block, sort_keys=True).encode()
        return hashlib.sha256(encoded_block).hexdigest()
 
    def chain_valid(self, chain):
        previous_block = chain[0]
        block_index = 1
         
        while block_index < len(chain):
            block = chain[block_index]
            if block['previous_hash'] != self.hash(previous_block):
                return False
               
            previous_proof = previous_block['proof']
            proof = block['proof']
 hash_operation = hashlib.sha256(
                str(proof**2 -
previous_proof**2).encode()).hexdigest()
             
            if hash_operation[:5] != '00000':
                return False
            previous_block = block
            block_index += 1
         
        return True
 
 
# Creating the Web
# App using flask
app = Flask(__name__)
 
# Create the object
# of the class blockchain
blockchain = Blockchain()
 
# Mining a new block
@app.route('/mine_block', methods=['GET'])
def mine_block():
 previous_block = blockchain.print_previous_block()
    previous_proof = previous_block['proof']
     proof = blockchain.proof_of_work(previous_proof)
     previous_hash = blockchain.hash(previous_block)
     block = blockchain.create_block(proof, previous_hash)
     
     response = {'message': 'A block is MINED',
                'index': block['index'],
                'timestamp': block['timestamp'],
                'proof': block['proof'],
                'previous_hash': block['previous_hash']}
 return jsonify(response), 200
 
# Display blockchain in json format
@app.route('/get_chain', methods=['GET'])
def display_chain():
    response = {'chain': blockchain.chain,
                'length': len(blockchain.chain)}
    return jsonify(response), 200
 
# Check validity of blockchain
@app.route('/valid', methods=['GET'])
def valid():
    valid = blockchain.chain_valid(blockchain.chain)
     
    if valid:
        response = {'message': 'The Blockchain is valid.'}
    else:
 response = {'message': 'The Blockchain is not valid.'}
    return jsonify(response), 200
 
 
# Run the flask server locally
app.run(host='127.0.0.1', port=5000)

Output (mine_block):
{
"index":2,
"message":"A block is MINED",
"previous_hash":"2d83a826f87415edb31b7e12b35949b9dbf702aee7e383
cbab119456847b957c",
"proof":533,
"timestamp":"2020-06-01 22:47:59.309000"
}

Output (get_chain):
{
"chain":[{"index":1,
"previous_hash":"0",
"proof":1,
"timestamp":"2020-06-01 22:47:05.915000"},{"index":2,
"previous_hash":"2d83a826f87415edb31b7e12b35949b9dbf702aee7e383
cbab119456847b957c",
"proof":533,
"timestamp":"2020-06-01 22:47:59.309000"}],
"length":2
}
Output(valid):
{"message":"The Blockchain is valid."}

Working Mechanism of Blockchain:

Blockchain can be defined as a shared ledger, allowing thousands of connected

computers or servers to maintain a single, secured, and immutable ledger. Blockchain
can perform user transactions without involving any third-party intermediaries. In
order to perform transactions, all one needs is to have its wallet. A Blockchain
wallet is nothing but a program that allows one to spend cryptocurrencies like BTC,
ETH, etc. Such wallets are secured by cryptographic methods(public and private keys)
so that one can manage and have full control over his transactions. 

Now, this is how Blockchain works. Initially, when a user creates a transaction over a
Blockchain network, a block will be created, representing that transaction is created.
Once a block is created, the requested transaction is broadcasted over the peer-to-
peer network, consisting of computers, known as nodes, which then validate the
transaction. 

A verified transaction can involve cryptocurrency, contracts, records, or any other

valuable information.

Once a transaction is verified, it is combined with other blocks to create a new block
of data for the ledger.
How blockchain and distributed ledger technology work:
Blockchain works via a multistep process, which in simple terms happens as follows:

An authorized participant inputs a transaction, which must be authenticated by the

technology.

That action creates a block that represents that specific transaction or data.

The block is sent to every computer node in the network.

Authorized nodes verify the transaction and add the block to the existing blockchain.
(Nodes in public blockchain networks are referred to as miners; they're typically paid
for this task -- often in a process called Proof of Work, or PoW -- usually in the form of
cryptocurrency.)

The update is distributed across the network, which finalizes the transaction.

These steps take place in close to real time and involve a range of elements. Figure
shows the block creation and verification steps in more detail.
Blockchain privacy and security

Security is seen as one of the major advantages of blockchain. Blocks are always
stored chronologically, and it is extremely difficult to change a block once it has been
added to the end of the blockchain. Each block has its own hash code and the hash
code of the block that comes before it. If a hacker tries to edit a block, the block's hash
will change, meaning the hacker would have to change the next block's hash in the
chain, and so on. Therefore, to change one block, a hacker would have to change
every other block that comes after it, which would take a massive amount of
computing power.

Despite the use of consensus algorithms, blockchain is still susceptible to 51% attacks
in which an attacker has more than 50% control over all the computing power on a
blockchain, gaining the ability to overwhelm the other participants on the network.
This type of attack is unlikely, though, because it would take a large amount of effort
and a lot of computing power to execute.

APPLICATIONS:

1.Agricultural Insurance:

Agricultural insurances differ with respect to how losses are assessed and
consequently how payouts are triggered. Insurances that indemnify farmers based on
a damage assessment that was made by an expert on the farm are denoted as
indemnity-based insurances. Indemnity based insurances are able to precisely cover
losses, however, they are prone to problems arising from asymmetric information
problems. More specifically, information on the riskiness of the agricultural
production and production practices is asymmetrically distributed between farmer
and insurer. Farmers are expected to be better informed about both which
incentivizes adverse selection and moral hazard. The adverse selection indicates that
farmers with a higher ex ante risk exposure are more likely to purchase insurance
compared to farmers with lower risk. Moral hazard indicates that farmers shift to
more risky production practices when being insured. Both phenomena lead to market
failure of the insurance scheme if the insurer has insufficient information on the two
cases. Thus, indemnity-based insurances are prone to costly damage assessment and
need to implement measures to avoid problems arising from asymmetric information,
such as deductibles. Moreover, productions that cannot be measured, e.g., grazed
meadows, cannot be insured although leading to financial damage .

2.Smart Agriculture:
Underlying the agri-food systems is the essential data and information on the natural
resources that support all forms of farming. As shown in  data and information flow
while products flow from inputs to output through various value-adding stages as well
as financial flow from output to inputs. Different actors and stakeholders generate and
manage data and information as per their needs and capacities. Smart agriculture is
featured by the utilization of ICT, internet of things (IoT), and various modern data
collection and analysis technologies including unmanned aerial vehicles (UAV),
sensors and machine learning.

A key issue of establishing smart agriculture is developing a comprehensive security

system that facilitates the use and management of data. Traditional ways manage
data in a centralized fashion and are prone to inaccurate data, data distortion and
misuse as well as cyber-attack. For example, environmental monitoring data is
generally managed by centralized government entities that have their own interest.
They can manipulate the decision-making related to data.
3.Food Supply Chain:

With increased globalization and intense competition in the market, food supply
chains have become longer and more complex than ever before. There are some
common problems in food supply chains such as food traceability, food safety and
quality, food trust and supply chain inefficiency, which add additional risks on the
entire society, economy and the health of human.

From the producers’ perspective, the use of blockchain technology helps establish a
trust relationship with consumers and build up the reputation of their products, by
transparently providing individual product information in the blockchain. Enterprises
can better achieve the value of their products and thus increase their competitiveness.
This would make it difficult for suppliers of fraud and low-quality products to stay in
markets and force all suppliers to improve the quality of products in the whole
agricultural and food sectors. From the consumers’ perspective, the blockchain makes
true and reliable information about how food is produced and transacted available.

It helps address consumers’ concern about the safety, quality and environmental
friendliness of food. The use of blockchain provides the possibility for consumers to
interact with producers because consumers can understand the food production
process more conveniently and in more detail. It supports consumers by removing
obstacles in the exchange of goods to tighten their relationship, and thus strengthen
consumer trust and confidence in food safety. From the regulatory agencies’
perspective, blockchain makes reliable and accurate information available for them to
carry out informed and efficient regulations .

4.E-Commerce of Agricultural Products:

The e-commerce and trade of agricultural product face some crucial problems to
solve. First, a have demonstrated that consumer with high overall trust is more willing
to purchase online, however, the basic information of agriculture products is not easy
to be confirmed and trusted by consumers. Meanwhile, Cash on delivery and Logistics
service are the most crucial challenges faced by e-commerce companies, especially in
developing countries . Besides, e-commerce retailers also need to handle time-
demanding small orders with diverse items , which causes high operating costs for e-
commerce companies.

Blockchain technology may provide proper solutions for many aspects of these
problems: information security. Blockchain technology provides private key
encryption which is a powerful tool that provides the authentication requirements . It
can thus link the data of all aspects of planting and harvesting of agricultural products
safely and unchangeably. Supply chain management. Blockchain technology could
enable supply chain management more efficiently than traditional monitoring
mechanisms by lowering signaling costs for each entity . Every link in the supply chain
– the producer, the place of origin, the shipping company, the destination, the
multimodal transport, the warehouse and the final last mile – represents a “block” of
information, with the advantage of visibility, aggregation, validation, automation and
resiliency . Payment methods. The blockchain provides a digital payment solution
with zero rates. Furthermore, application of cryptocurrency in the transaction of
agricultural products will reduce transaction costs more substantially. Consumer
confidence. Through the decentralized mechanism, the distributed accounting system
of the blockchain is time-stamped, so that all information on the chain is transparent
and unmodifiable. Consumers will be liberated from fakes and regain confidence in e-
commerce . Reduce the cost of farmers. Many agricultural products are produced by
households. Due to the low transaction volume and small scale, traditional e-
commerce is neither willing nor able to provide services for them, thus excluding
these participants from the market. Blockchain technology can greatly reduce
transaction costs and incorporate them into the market again.

Waste can also not be dumped when it is windy since it will get blown into the
surroundings. On the other hand, incinerators are not limited to weather changes
since they burn waste without leakages. Incineration plants also function 24 hours a
day and are more efficient in managing waste compared to landfills.

ADVANTAGES:

 Security is probably the most significant advantage. It is almost impossible to

corrupt a blockchain because the information is shared and continually
reconciled by thousands, even millions, of computers. Blockchain also has no
single point of failure.
 Transactions can be more efficient than in non-DLT-based transactional
systems, though public blockchains can sometimes suffer from slow speed and
inefficiency.
 It's resilient: There is no problem if one node goes down because all the other
nodes have a copy of the ledger.
 It provides trust between participants on a network. Confirmed blocks are very
difficult to reverse, which means data is difficult to remove or change.
 It can be cost effective because it often reduces the expense associated with
transactions by eliminating middlemen and third parties.
DISADVANTAGES:

 With public blockchains, there are questions about ownership and who is
responsible when problems arise.
 There are also questions about whether organizations are capable of or willing
to invest in the infrastructure needed to build, participate and maintain a
blockchain-based network.
 Changing data in a blockchain typically takes a lot of work.
 Users have to keep track of their private keys to avoid losing their money.
 Storage can grow to be very large over time, which risks the loss of nodes if the
ledger becomes too large for users to download.
 Blockchain is susceptible to 51% attacks, which is a specific attack designed to
overwhelm other participants in the network and change blocks.

INFERENCE

figures: the user interface of model

CONCLUSION:
A traceability modeling approach based on blockchain and smart contracts is
presented. The purpose of using blockchain is to overcome certain impediments of
traditional FSC traceability mechanisms, like lack of security, information sharing, and
systems integration difficulties. To showcase the feasibility of the proposed
architecture, a local private blockchain and a smart contract are used, which
implement a set of functions that enable different characteristics/benefits. In addition,
the benefits of the architecture mentioned above like increased visibility, security, and
operations’ automation are discussed. Some limitations of the proposed FSC
traceability model should be kept in mind.

For example, the model addresses a relatively simple FSC network (manufacturer,
wholesaler, and distributor). Therefore, it would be interesting to explore FSC
scenarios in which multiple and disparate FSC members interact. In this case, it is
expected that features of trust and visibility would be further exemplified by the use
of smart contracts and blockchain. Regarding the KPIs developed, future validation of
the proposed model will provide concrete evidence regarding its performance in
advanced business settings. Some limitations of the blockchain technology itself
should also be mentioned. For instance, blockchains are not suitable for the storage of
vast amounts of data and many recognize that scalability is one of the main challenges
to solve. In addition, a multitier FSC network would require the processing of a large
number of transactions in a relatively short period; therefore, scalability issues could
also arise. It should be noted that scalability issues mainly stem from the time
required to confirm/verify transactions. Apart from the implementation of traceability
in a multi-tier FSC network, further research will focus on the use of the proposed
modeling approach in conjunction with supply chain optimization approaches.

REFERENCES:
Aramyan, L.H. et al. (2007). Performance measurement in agri-food supply chains: a
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