There is a huge challenge to trace the origin of our food supply today. Food supply chain is amongst the most complex of all supply chains. The food producers and the whole supply chain are so fragmented, and it is incredibly difficult to identify and track, resulting in issues such as fraud, slavery, counterfeiting, and ethic violations, etc. These issues are not only triggering financial cost of fraud, slavery, inefficiencies such as recalls of unsafe food, they fundamentally violate the core of humanity.
Today, we do trace and control the food supply chain, with limited traceability and control with fragmented sources both online and offline from relevant authorities and NGOs. However, that traceability is likely plagued by foul play and fraud. Immutability is of utmost importance as there are countless stakeholders involved in the trillion-dollar worth of the global food industry, which bound to have slippage in data integrity or simply unethical parties that manipulate data or commit fraud for personal gain. Blockchain technology will be useful in this use case where data cannot be manipulated; the supply chain can be traced securely; reduce the operational cost, and create trust.
- A public blockchain enables anyone to be part of the validation process, prevents anyone to take control of the system, and only those running the nodes would be able to make changes. As such public institutions would not be able to control any of the ledgers. However, this poses certain risks such as uncovered loss of digital assets, and IDs which can be potentially addressed by assigning a custodian with private keys. Such centralized system does not completely issue free as it is vulnerable to hackers and collusion. For scalability, the public blockchain does have its limitations in terms of throughput and speed.
- There are protocols such as Ethereum, which their contracts are not run on the blockchain, but they are confirmed in the blockchain. In other words, the…