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Procedia Computer Science 00 (2022) 000–000
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Procedia Computer Science 215 (2022) 321–330

`4th International Conference on Innovative Data Communication Technology and

Application

Blockchain in Food Supply Chain

Daksh Patela, Aditya Sinhaa, Tilak Bhansalia, Usha. Ga, Velliangiri. Sa*
a
Department of Computer Science and Engineering, SRM Institute of Science and Technology, Chennai, India

Abstract

Blockchain as we all know has captured interest all over the world. Because of its features like decentralization, enhanced security,
and distributed ledgers its application is increasing day by day. Ever since the Vegan and PETA movements have taken strong
grounds for questioning the production of food and the conditions they are kept in, the customer has gotten deeply involved and
wants to know every step that takes place to make the food they eat. This has led agribusiness to seek supply chain management
software to improve food safety, food quality, and traceability throughout the agricultural supply chain. Blockchain is changing
the concept of trust here. Using blockchain for the supply chain makes the agricultural business easier and more transparent to
monitor products from farmland to store, as well as decreasing financial risks and promoting inclusive trade. The suggested
framework method eliminates the requirement for a trusted centralized authority, intermediates, and transaction records, allowing
for a more transparent and direct interaction between peers. We are taking data/transactions from every step in the production cycle
and storing it gradually on blocks as we go while using the features of blockchain to make everything more secure. We are also
making sure that the peers involved have all the information regarding the transactions making it decentralized enabling a peak
level of transparency and traceability in the supply chain ecosystem in a solid, reliable, and well-organized manner.
© 2023 The Authors. Published by Elsevier B.V.
© 2023 The Authors. Published by Elsevier B.V.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
This is an open
Peer-review underaccess article of
responsibility under the CC BY-NC-ND
the scientific license
committee of the 4th(https://creativecommons.org/licenses/by-nc-nd/4.0)
International Conference on Innovative Data Communication
Peer-review under responsibility
Technologies and Application of the scientific committee of the 4th International Conference on Innovative Data
Communication Technologies and Application
Keywords: Blockchain, Food Supply Chain, Agriculture, Ecosystem

1. Introduction

As the world is transforming at an incredible pace, we as the human mind do not settle at any point.

* Corresponding author. Tel.+919500519166.

E-mail address: velliangiris@gmail.com

1877-0509 © 2023 The Authors. Published by Elsevier B.V.

This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the 4th International Conference on Innovative Data Communication
Technologies and Application

1877-0509 © 2023 The Authors. Published by Elsevier B.V.

This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the 4th International Conference on Innovative Data Communication
Technologies and Application
10.1016/j.procs.2022.12.034
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2 Author name / Procedia Computer Science 00 (2019) 000–000

New technological advancements are coming into our life. In recent years, we have seen the growth of blockchain
for various purposes, whether cryptocurrency or for maintaining digital transactions and many more. However, the
side which is still untouched is how blockchain can be incorporated into agriculture. Major Areas where blockchain
can be most helpful are in Food Supply Chain and even in Information and Communication Technology, such as
remotely monitoring farm conditions and enhancing irrigation systems using those conditions. Blockchain is a
distributed database that stores information electronically in digital format. Blockchain guarantees the fidelity and
security of the record of data. It generates trust without the need for a trusted third party which can be very helpful for
the food supply chain [1].
The Major purpose or the need for blockchain in agriculture is to bring out transparency and immutability in data.
Data from monitoring systems or from the food supply chain is needed to be secured from various entities participating
in the food supply chain such as farmers, consumers, etc.
Blockchain is based on Computation power, Internet Speed, and Data; the competitiveness and cost-effectiveness
are likely to increase based on three laws: (1) Moore's law, i.e., the number of transistors in a dense integrated circuit
(IC) doubles every two years hence the data processing halves about every two years. (2) Kryder's law, i.e. the disk
drive density, also known as areal density, will double every 13 months hence data storage halves every year. (3)
Nielsen's law, i.e., the Internet bandwidth grows by 50% every year; hence, Internet speeds double every two years.
In the future, these numbers can facilitate various transactions and processes as a democratizing framework for a
distributed network system [2].

2. Food Supply Chain

Unlike the past decade, people are becoming more and more health-conscious. We can see an increasing trend for
organic and high-quality food products. According to a report, Global organic food sales are predicted to reach $849.7
billion by 2028.[3] Due to this, it becomes a necessity to be able to trace the food we eat. The traceability information
needs to be secure, reliable, and transparent to ensure trust among consumers. It guarantees that the food delivered is
safe to eat. Food supply chains have grown longer and more complicated than ever before as a result of increased
globalization and intense market rivalry. However, due to the current state of the food supply chain, it is difficult for
food manufacturers and retailers to confirm the source of their products [4].
It contains details of the components, origin, processing, transportation, and storage conditions of the food. In a
nutshell, we can say that it includes the entire process of how food grown on a farm makes its way to the dinner table.
It includes production, processing, transporting, retailing, and consumption. Throughout this, food is moved from a
farmer producing the crop to the consumer buying it from stores. Every step requires raw materials and labor to take
it to the next step. There is a list of steps [5], (as shown in Fig. 1.)
• Production - The food supply chain begins at this level. It is where all food is sourced. Farmers here are
responsible for growing crops and livestock.
• Processing and packaging - This stage transforms the raw material and primary food into products suitable for
consumption. Once it is done, food is sent for packaging so that it can be delivered.
• Distributing - Once the food is ready to be consumed, it is delivered to the right store or provider. Distributors
distributed commodities, manage inventory, minimize costs, and do other things to increase the value of a food
item.
• Retailer - This step directly connects with the consumer. It takes care of delivering the end products. Everything
from receiving the allotted products to selling them is covered.
• Consumer - The consumer is the one who purchases food from a shop and consumes it.
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Fig. 1. Traditional Food Supply Chain.

To this day, the existing method is inefficient and unstable. Product trade is built on intricate and paper-heavy
resolution processes that are unclear and expose both buyers and sellers to severe risks throughout the value exchange.
As transactions are prone to fraud, intermediaries are commonly utilized to reduce the total cost of transfers. The cost
of maintaining supply networks is thought to make approximately two-thirds of the total contract price for the
commodities. There is therefore plenty of space for supply chain optimization through cost reduction. Finally, when
people shop locally, they are not aware of the products' origins or the production's impact on the environment. The
present food supply chain has some additional disadvantages. High-quality food is in high demand, but the present
food supply system can't meet it. There are huge costs and very little honesty and transparency in recent supply chains.
Poor communication between the participants in the chain is also a big problem that leads to a lot of issues like wastage
of food and many more [6].
A strong food supply chain is essential for addressing customer demand for high-quality foods. To boost consumer
trust and buy willingness, the food chain must become more sustainable. Tracking and authenticating data across the
whole food supply chain is crucial for identifying and treating contamination sources. A supply chain must have both
primary and secondary information on the finished packaged food and its ingredients to be considered successful.
Blockchain technology is the best way to meet these challenges.

3. Blockchain

3.1. Blockchain Concept and Data Structure

Blockchain was created in 1991. It holds digital documents with timestamps that may be altered or backdated based
on the blockchain's privacy. It's computer-based and includes decentralized accounting systems, such as point-to-point
transmission, encryption, and consensus procedures, as well as multi-node community maintenance. This system is
trustworthy, decentralized, and reliable. It can transfer information and execute transactions without third-party
approval. Blockchain technology consists of blocks with sequential transactions. It's a chain comprised of two
elements: Block Head links the forward block and lets users query, monitor, and examine data. Hash function of
forwarding block. (2) The block content contains timestamp, location, amount, transaction, and event rules [6]. Fig.2
shows the blockchain's structure.
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Fig. 2 Data Structure of Blockchain

The chained data structure allows each block in a blockchain to keep the previous block's contents while injecting
new data at the head of the next block. Asymmetric key schemes and smart contracts prevent attackers from changing
blockchain data. Blockchain is a programmable architecture and shared network ledger. These qualities make
blockchain excellent for decentralized, decentralized assets, dynamic supply-and-demand matching, and automated
transaction execution[7].
In a nutshell, blockchain is (1) decentralized, meaning power and authority are dispersed rather than centralized.
This method improves productivity, decision-making, motivation, and top-management burden. (2) Responsible The
information provided in a transaction between two users is available to every member of the network, reducing fraud.
All blockchain transactions are encrypted, maintaining network integrity. Cryptography protects data via code[7,8].

3.2. The Aspects of Blockchain that Impact the Food Supply Chain

Today's supply networks face obstacles such as customer trust, supply chain integrity, product quality, logistical
challenges, environmental impact, personal customer information, fraud, food security, and other issues. Consumers
are also worried well about food security and long-term sustainability. However, there is no transparency between
transactions and associated data owing to the existing state of the supply chain. A malicious supply chain company,
for example, might tamper with invoice data and incorrectly adjust paid or outstanding amounts. As a result, offering
a strategy that increases immutability and ensures. The structure of the food supply chain using Blockchain is shown
in Fig. 3.
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Fig. 3. Blockchain-based Food Supply Chain

Transactional secrecy is critical in supply chain use cases. Supply chain security challenges may be addressed with
blockchain technology, which gives goods authenticity, accountability, and accountability. The subsections that
follow discuss and analyze various aspects of blockchain technology that influence the supply chain, both directly and
indirectly.

3.3. Scalability

Global stakeholders and a huge flow of newly generated, time-sensitive information are present in modern supply
chains. Due to the lack of a single standard database, modern supply chain solutions cannot handle this data. By
offering a connected and decentralized register for all supply chain participants to join, blockchain may considerably
aid scaling up. As a result, there isn't a single point of failure, and all supply chain information is stored on a ledger
that is accessible to everyone in the network.

3.4. Performance

As a product or cargo passes through the supply chain, several things happen. Fraud, human error, and software
failure may devastate system performance. Most blockchain activity is ledger-added digital transactions. This
improves system performance by speeding up and reducing errors. When triggered in a few minutes, a smart contract
may pay custom parties instantaneously, regardless of their location. Blockchain offers data consistency, integrity,
and confidentiality out of the box, whereas conventional supply chain solutions take effort.

3.5. Distributed Consensus

Consensus guarantees immutable data on blockchain networks. The consensus's objective is to maintain all network
transaction data. The transaction information contains sender and destination addresses, amount of money transferred,
tags or electronic seals applied to objects, and other data, as well as date and order. Blockchain's uniqueness depends
on consensus procedures. Blockchain systems provide several general agreement methods based on ledger access.
Conventional consensus procedures include proof of labor and proof of stake, bureaucratic fault tolerance, elapsed
time, and authority matching. Today's supply chains lack a standardized structure that organizes and safeguards each
step of the product, leaving the potential for errors, fraud, and product failure. Consensus methods using "mining"
enable blockchain trust and node global agreement [9].
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3.6. Security

Blockchains greatly enhance privacy compared to traditional supply chains, where any type of data can be accessed
and changed. Blockchain ledgers protect users' privacy in addition to preserving unchangeable data. Public
blockchains have pseudonymity, which enables individuals to interact with the ledger using a fresh address without
disclosing their real identities. Permissioned and private blockchains can offer complete network anonymity in the
ways listed below. Parties may sign up for a private blockchain or consortium anonymously after receiving advance
certification through an off-chain supply chain technique. In either case, the supply chain runs smoothly, but the
original identity is safeguarded and kept secret from other network participants, allowing them to continue believing
that they are actual members.

3.7. Cost-Effective

Blockchain reduces supply chain costs and locations. Blockchain provides a cheaper alternative to banks for long-
distance supply chain transactions than bitcoin. The whole supply chain process can be done faster since most
procedures may be represented as transactions. The blockchain network may be notified when raw material extraction
is complete. The succeeding step is still in its early stages since the extraction is a shared ledger transaction.

4. Analysis and findings

Even though Blockchain is now extensively utilized, there is still little study being done on this subject. Several
businesses have begun to use blockchain in their initiatives. They have acquired data transparency and traceability by
using blockchain. We've offered a quick rundown of the findings and analyses in this part.

4.1. Need for Blockchain in Supply Chain Case Studies.

Food supply chain traceability and transparency are key. If horse meat could be traced, the 2013 crisis wouldn't
have happened. European scandal. Foods labeled as containing beef were found to include horse flesh, accounting for
up to 100% of the meat in certain cases. Other goods included undisclosed meats like a pig. Several reports were
issued in early 2013. Horse DNA was found in frozen beef burgers [8]. The analysis found pig DNA in 23 of 27 beef
burger samples. Some religions prohibit them. This problem marked a turning point in the food traceability discussion
for several reasons. People started to worry if these components appeared in other dishes. As the crisis expanded to
other European nations, policymakers sought a continent-wide solution. They tested 4,000 horseflesh samples for
veterinary medicine [10,11].
Several firms now use blockchain. New companies are entering the industry to tackle problems. "Thanks my
Farmer" utilizes blockchain to trace coffee from its source. Customers may examine coffee details. Customers may
help farmers using the app. Chinese e-commerce giant JD.com uses blockchain to monitor imported meat. Information
will increase agricultural and animal productivity. IBM and Walmart are involved. IBM helped Walmart create a food
monitoring and tracing program[3]. IBM's open-source ledger helps Walmart manage product safety from farm to
table. Walmart's first ledger experiment (for lettuce) was successful, and the company plans to test other items soon
[12]. Transparency and traceability are their top priorities. Greenfence's ledger-based software authenticates and
records food chain participants. The program checks people, locations, distributors, equipment, and everything else
engaged in the farm-to-table process, guaranteeing quality at every level [13,14]. Greenfence Consumer co-founder
Jonas Hudson states, "Through our platform, we enable companies the capacity to engage directly with customers on
a large scale, effectively, inexpensively, and with extremely minimal risk for both the brand and the consumer"
[15,16].
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4.2. Blockchain Application in Industries.

In the last few years, many companies have come up with innovative ways to use Blockchain Technology in the
Agri-Business sector. New companies are emerging every day, which are solving many problems in this field. Here
are a few of them:(Fig. 4.)

5. Benefits:

Blockchain and its characteristics can provide vast and multiple advantages in the field of agriculture as blockchain
increases trust, security, transparency, and traceability of data, and not only that it uses no paper in the process which
is again an advantage. So further in this section, we discuss the benefits of using blockchain in agriculture.

Fig. 4. Business Application.

The following are the six advantages of using blockchain technology in agriculture:
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5.1. Improved Quality Control and Food Safety

We can use blockchain to

• make the supply chain more transparent
• get rid of inefficient procedures
• ensuring that the quality control conditions are optimal.
Crop failure, for example, is a common problem for farmers all around the world. It frequently occurs as a result
of bad weather circumstances, such as uneven rainfall and irregular weather. Such problems are often faced by farmers
and there is no way to stop a natural calamity.
Companies like IBM are investing millions in smart agriculture to solve these challenges, building IoT devices that
enable farmers to monitor components that might harm their crops, including
• The quality of the soil
• Pests usage
• Inappropriate Irrigation
These devices would be connected to the blockchain ledger thus, the farmers will have a more clear idea and a far
better outlook of the situation as these devices will give results in real-time which would lead to the prevention of
monetary losses and resulting in better food quality; it may potentially save lives.[4]

5.2. Increased Traceability in the Supply Chain

Since the Vegan and PETA movements have questioned food production and animal circumstances, customers
demand to know every stage of food production. Businesses want supply chain management software to improve
safety, quality, and traceability. Using blockchain technology, clients may get exact information on food's origin,
producer, freshness, and growing circumstances. Scan the product at each step to update the database [17].
By scanning a vegetable packet's barcode or serial number, we may learn how and where it was cultivated.
Farmers will benefit from increased traceability since it will allow them to
• track their crops throughout the processes
• follow them through the planting, processing, warehousing, and supply chain.
Third-party agribusinesses might alter the market. In India, a few years ago, there was a sudden surge in the price
of onions without any climate change or irrigation mishaps. Some major 3rd party distributors hid tonnes of onions in
godowns all over India, which led to a scarcity of onions in the local market, hurting the poor and making these 3rd
parties richer. In this instance, the dishonesty was discovered, but this must be occurring in little towns of undeveloped
nations, impacting the poor, and these 3rd parties aren't being caught. If these systems had used Blockchain
technology, criminal acts may have been tracked down sooner owing to traceability in peer-to-peer transactions,
preventing them [18].

5.3. Increase in Farmer’s Efficiency

To maintain track of their products and services, many farmers now employ a variety of 3rd party services. It takes
a lot of work to move this data to other service providers, thus it is not simple. By centralizing all of their data in one
location that is immediately accessible to those who need it, farmers may be able to expedite the process and save
time and energy.
They would be able to monitor things like their firm goals and the strategies they plan to use to attain them, for
example.
• Count of animals, their health issues, what they consume, etc
• What are the various crop kinds, when were they sown, and what is their growth?
• The time each employee has worked, how much money they owe each employee, and their personnel schedule.
• Revenue and outlays.
Instead of employing many ways, regular monitoring of everything in a single application streamlines the process
and lowers the chance that crucial data will be lost.
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5.4. Equitable Payout for Farmers

Farmers face a variety of challenges that make it difficult to get paid for their products, including the fact that
payment may take weeks. Wire transfers suck up a big percentage of farmers' revenue.
Farmers struggle to sell their commodities at a fair price. Smart contracts remove middlemen by connecting farmers
and merchants directly. They'd get a better deal on their stuff.
In growing economies like India, where GDP growth rates have ranged between 7-8 percent while agriculture has
only expanded between 2-3 percent, farmer compensation is a serious problem. By removing intermediaries,
Blockchain will increase farmer pay and save thousands of lives. 5,098 Indian farmers committed suicide in 2020
owing to different farming-related causes, although the inability to repay debts was the most prevalent. This trend is
old. National Crime Records Bureau of India: Since 1995, 300,000 Indian farmers have murdered themselves.
Increasing farmers' income may decrease communal issues.

5.5. Food Security

As per the United Nations Committee on World Food Security, food security is the condition of all people at all
times having physical, and socioeconomic access to adequate, hygienic, and nutritious food that satisfies their dietary
requirements and food preferences for an active and healthy life. Achieving this seems to be challenging in current
times. Due to the current supply chain, it is made even worse. Blockchain is the key to food security. Because
decentralization and distributed databases eliminate the need for intermediaries. It also improves traceability which
could help curb fraudulent activities and big scams. Blockchain can help in the transparent delivery of international
aid and be able to respond quickly and efficiently to emergency needs.

6. Challenges

Interoperability is becoming a challenge as the use of blockchain grows at a rapid pace. Blockchain is already being
used in various academic and business disciplines, opening up a world of possibilities for inquiry. However, concerns
and obstacles exist, just as they do with other new technology. We examine some of the limits of blockchain
technology in this part, as well as many prospects for further study development, especially in the food supply chain
field [15].

6.1. Organisational challenges

Adoption is affected by organizational readiness, digital infrastructure, scaling issues, technical aptitude, legal and
regulatory compliance, performance expectations, standardization, model security, and firm location. Scaling up
without a uniform standard poses interoperability concerns. Consumer education and empowerment are crucial for
accepting new technologies.

6.2. Technical challenges

Blockchain is a tamper-proof distributed file system with one of the most secure and transparent systems. To
guarantee error-free verification and traceability, simple tracking, and no outside interference are required. Other
crucial aspects of blockchain technology include auditing, visibility, and decentralisation.

6.3. Operational challenges

Issues still exist in supply chain operations and logistics management. Damage to raw materials and commodities,
inaccurate data input, order mishandling, and other issues still exist. Lack of infrastructure may make accomplishing
the aims of blockchain adoption difficult in developing and underprivileged countries.
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7. Conclusion

Based on the literature analysis, Blockchain Technology has great value and strong potential in resolving data
integrity concerns, boosting transparency, enhancing security, reducing fraud, and other issues creating a sense of trust
and secrecy.
Today, blockchain technology is being used in a variety of industries, one of which is agriculture, where confidence
is sought without the participation of a centralised authority.
However, integrating Blockchain Technology in businesses across a variety of sectors might be prohibitively
expensive. Organisations must invest a large amount of money to migrate or move outdated systems. Organisations
will have to implement blockchain technology early, a single platform to handle hybrid application architectures,
incorporating legacy systems and blockchain. As a result, they must expand their knowledge. Blockchain Technology,
its value, prospects, and threats are all well-understood. As a result, there are just a few cases when the technology
has been used in conjunction with these systems. As a result, Blockchain Technology may not quickly replace
traditional systems or applications. Blockchain, on the other hand, Blockchain may be a useful supplement to legacy
systems and may even lead to the construction of new ones shortly. To summarise, more extensive study in the domain
of Blockchain Technology is required to progress the field's maturity, as it is still in the exploratory stage and many
legal and technological challenges remain to be resolved.

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