Almost everybody that follows the news or uses the internet knows about Bitcoin. This cryptocurrency was the first to introduce Bitcoin to investors and mainstream media. Although Bitcoin is relatively new to some people, blockchain’s potential and applications are spreading beyond this cryptocurrency. And the agricultural sector is among the industries that are already using this technology.
Ideally, this technology allows users to transfer assets or value without a trusted intermediary. Blockchain records the exchange in a ledge that all users share. Thus, this record provides a transparent view of the asset details, including the asset owners and descriptive information of their location and quality.
Bitcoin presents an example of the application of this technology. And the agricultural sector stands to benefit from this application significantly. Today, Bitcoin is gaining popularity in the agricultural sector as more farmers and institutions start using it. Some farmers even use platforms like The Bitcoin Code to trade Bitcoin and invest their profits in agriculture. At the same time, some farmers use such crypto exchanges to get Bitcoins and use them to buy farm inputs online. That’s because Bitcoin payments are cheap and convenient than paying with traditional money.
Managing the Supply Chain and Supervising Financial Matters in Real-Time
Bitcoin facilitates fast payments, lower fees, and accessible credits for players in the agricultural sector. When selling farm produce internationally, farmers can use Bitcoin to ensure quick payments. Bitcoin transactions eliminate third parties like banks. That means farmers don’t have to wait for third parties to process their payment.
By eliminating intermediaries, Bitcoin ensures transparency and trust among the contracting parties. It also eases information sharing in the supply chain. And this can significantly decrease transaction costs in the agricultural sector.
Boosting Transparency and Trust in the Agricultural Sector
In most cases, agricultural businesses depend on third parties. Others use a central authority to support their business transaction. But using Bitcoin in the farming sector can change this operation mode. Bitcoin’s peer-to-peer architecture eliminates centralized controls. What’s more, this cryptocurrency requires transaction authentication to ensure reliability and trust among users. Using cryptography makes Bitcoin a highly encrypted currency that enhances security for business transactions in the agricultural sector.
Quick Fraud Detection
Using Bitcoin in the agricultural sector can also minimize fraud risks by ensuring their timely detection. A Bitcoin user can track every transaction in the public ledger. They can also follow their transaction history using blockchain technology.
What’s more, Bitcoin transactions are irreversible and immutable. Thus, unauthorized third parties can tamper with Bitcoin transactions. Consequently, hackers can’t interfere with agricultural business transactions because the Bitcoin network has several participants authenticating and time-stamping them in the blockchain in real-time.
Blockchain and Bitcoin Can Improve Convenience in Trading Agricultural Products
Using blockchain technology and Bitcoin will alter the agricultural sector’s trading process. Many farmers can benefit from this technology because it facilitates fair trade globally. Even small farmers can trade agricultural commodities with large corporations outside their regions. That’s because Bitcoin eliminates money transfer issues that many farmers face when using traditional currencies, like commodity tariffs and trade regulations.
Better Food Quality
Using Bitcoin in the food supply chain eliminates delays that lead to low food quality and waste. What’s more, farmers can easily connect with suppliers and retailers to address troubling issues. For instance, retailers can locate the contaminated food source faster when there’s a food-borne disease. Thus, Bitcoin’s blockchain technology can facilitate instant product recall in the agricultural sector and save consumers’ lives.
Blockchain technology and Bitcoin can benefit the agricultural sector in many ways. For this reason, intelligent farmers are already using this virtual currency in their transactions. And this can give them a better competitive advantage going into the future. What’s more, this virtual currency and the technology behind it can improve operations in the agricultural supply chain.