Agriculture is not usually linked to technological innovation, but in a relatively short period, the industry has become a center of innovation and investment.

The agriculture sector is receiving increased attention due to growing awareness of climate change, the potential need to feed an additional two billion people by 2050 while managing resource depletion, and the industry’s significant contribution to greenhouse gas emissions. greenhouse gases.

There has never been a more pressing need for a sector to fully transition to more sustainable farming techniques that use fewer pesticides, deliver higher yields, and minimize waste and emissions.

Another important need is to safeguard the areas most vulnerable to the consequences of climate change. web3 development it has made it possible for innovation in the agricultural industry to grow very rapidly. Particularly about the use of data. Until now, only a relatively limited number of institutions and organizations have owned and benefited from the data, raising concerns about issues including a lack of transparency, poor data quality, bias, and bias. handling.

Open data on the blockchain solves most of these problems and has already spawned a variety of practical applications, some of which are listed below:

Improving transparency and the food supply chain

Food supply systems have become very complex and extensive. Retailers, not to mention customers, need help tracing the origin of items. Blockchain, on the other hand, can record data on any product from farm to fork.

Smart sensors and artificial intelligence (AI) technologies make it possible to trace the specific origins of a salad leaf, determine if it received a fertilizer treatment when it was harvested, packed or transported, and more. Other major retailers are now following Walmart’s lead in their efforts to increase openness in decentralized food supply networks on the blockchain. Walmart has been working on this for several years.

Finance for unbanked small farmers

According to the World Bank, half of the world’s farmers lack bank accounts. The number of farmers is 440 million. Similarly, a survey of Kenyan farmers revealed that 98% own cell phones. A smartphone is revolutionary because it gives farmers access to banking services. This may include using cryptocurrency platforms to obtain microloans and having the ability to pay or receive payments for products and services instantly, directly, and without the need for an intermediary. This Web3-powered initiative has the potential to significantly improve living standards in developing countries, as many communities are entirely dependent on their local farmers for all their food needs.

Index Insurance for Small Farmers

Contrary to popular belief, approximately 95% of farms around the world are smallholdings

with less than five hectares of land. These farms provide 80% of the food for certain countries, including Asia and sub-Saharan Africa. Unfortunately, these areas are already disproportionately affected by climate change, and a severe weather event could have a disastrous impact on the ability of farmers and local communities to support themselves.

The foundation of the Web3-powered index insurance is clean, open, unchangeable digital data from weather stations and farms on the blockchain. As a result, claims can be handled quickly and paid automatically. Farmers can reduce their exposure to risk and susceptibility to bad weather, equipment failure, and other problems.

Blockchain-powered carbon markets

Agriculture is a particularly suitable sector to join the ecosystem of carbon offsets. The largest carbon sink outside of the oceans is soil, and one of the most effective natural ways to combat climate change is to secure carbon in agricultural soil through photosynthesis. Agriculture now accounts for a significant part of the world’s emissions, but it also offers a great opportunity to reduce atmospheric CO2. Unfortunately, many farmers still need the resources to switch to more environmentally friendly farming methods, which prevents them from becoming carbon certified.

Meanwhile, social and economic constraints make it increasingly necessary for companies to put environment, social and governance (ESG) at the center of their operating model. However, companies trying to offset their remaining emissions are still looking for additional, quantifiable, transparent, and long-term tier-one carbon initiatives. While conventional financial methods often fail to meet the economic demands of farmers, the introduction of blockchain and Web3 technology allows interested individuals to quickly come together to support an important cause in need of funding.

This is precisely what is happening in the carbon markets, where a number of blockchain-powered platforms have emerged that are financing and pre-financing high-quality agricultural carbon projects.

Scratching the surface of infinite potential

While talk of cryptocurrency and get-rich-quick scams dominates the typical discussion of blockchain and how web3 is transforming the agricultural sector. Web3 is certainly more transformative for agriculture than the introduction of the first tractor over 150 years ago. It provides many opportunities, from improving the standard of living of farmers and communities around the world to helping the industry become more sustainable and environmentally friendly. The uses of Web3’s powers in agriculture now, not to mention its future potential, are barely covered by the above examples. Please keep an eye on this area for updates.

final thoughts

web3 technology it is developing. There is still a long way to go, although it has transformed many sectors.
But it’s becoming obvious that web3 It has applications in the agricultural sector. More than a billion people are employed in the global agricultural economy of more than $2.4 trillion. There is more potential than ever for creativity.

Derek T Belford is a freelance content writer with a passion for all things blockchain and technology. He looks forward to bringing you more news related to the fast-paced world of Crypto, NFT and Web3 from his New York headquarters.