While bitcoin remains in the news, the applications and potential of blockchain are spreading well beyond cryptocurrency.
Before we take a look at how the agriculture industry is using blockchain, let’s do a quick blockchain 101.
What is Blockchain? One way to think of blockchain is as a technology that allows users to transfer value, or assets, between each other without the need for a trusted intermediary. The exchange is recorded in a ledger that is shared by all users of that blockchain.
Users rely on this shared, or “distributed,” ledger to provide a transparent view into the details of the assets, including who owns the asset, as well as descriptive information such as quality or location.
The running history of the transaction is called the blockchain, and each transaction is called a block.
Today, when you hear about blockchain, what most really mean is ‘blockchains.’ There exist multiple different forms of this distributed ledger technology, each suited to distinct use cases.
One popular blockchain technology is Ethereum, which its founders launched around the idea that blockchains can do more than simply record information.
This concept, called ‘smart contracts,’ is central to Ethereum and allows users to codify significant parts of a workflow process, agreement, or task.
When a transaction occurs, the software automatically executes an action, or set of actions, according to the specifications in the smart contract. One example is smart locks; locks that automatically open after receiving the correct fee.
