知識專區

Application of Blockchain Technology in Food Supply Chain

發布日期: 2023-10-17

海量集團執行長 洪弘毅(Lewis Hung)

中國國際科技促進會 研究員 雍旻(Ari Min Yong

 

  Blockchain technology has attracted widespread attention in recent years, especially because of its decentralization, encryption, tamper-proof, and consensus mechanism, establishing it as an effective tool to mitigate and reduce system risks to ensure the safe storage of data. With the widespread adoption of the Internet of Things (IoT) within the logistics of the food industry, blockchain technology has been adopted in various sectors. Studies have shown that adopting blockchain technology in the supply chain can save up to 15% of administrative management costs. However, despite the significant potential of blockchain, its widespread implementation in the global supply chain faces major challenges in terms of standardization, platform development, business models, and regulatory frameworks. This paper will introduce the relevant applications of blockchain technology in transportation within the food industry.

  The integration of the Internet of Things (IoT) and blockchain has the potential to create a more transparent information system in food transportation, addressing the problems of cold chain breaks and traceability in the food industry. IoT possesses the powerful ability to record the entire transportation process from product processing to retail stores in a shared, transparent, tamper-proof, and automated way. By tracking storage conditions and routes during transportation, consumers are provided with additional reliable ways to verify the food transportation process, significantly enhancing the transparency of the method.

   Food safety issues can be attributed to a variety of factors, of which environmental pollution and temperature control are the most pertinent. Pollution may threaten various stages, including the origin, manufacturing process, or transportation environment. Moreover, temperature control is also a critical factor in whether food spoils or not; thus, the record and traceability of the entire cold chain are instrumental in ensuring food safety.

  Blockchain can be divided into three main categories: public chains, consortium chains, and private chains. Public chains are open to the public, such as the highly popular cryptocurrencies Bitcoin and Ethereum. In contrast, private chains involve transactions in which only a specific group of people can reach a consensus on governing rules. In a public chain, the entire system is completely transparent, and anyone has access to the rules, mechanisms, and transaction records on the chain. Once information is recorded on the blockchain, it becomes extremely difficult to modify or delete. Thus, public chains have a number of advantages, including an immutable distributed ledger, and they allow participants to take any action, reflecting the decentralized nature of blockchain technology.

   Because permission is required to enter, private chains are more restrictive. Private chains offer companies and organizations a way to quickly integrate into financial systems or supply chains while restricting access to specific parties. Businesses can define permission operations for all relevant parties. Additionally, private blockchains can combine multiple layers of data access to maintain the confidentiality of certain data. Therefore, private blockchains can ensure a higher level of security, privacy, and performance. Blockchain applications in the food industry primarily use private chains, with only participants in the food supply chain having access to the system, allowing them to record information related to food and food containers. This data is shared among all participants in the supply chain and is submitted to consumers for review and verification.

   From a logistics perspective, the main applications of blockchain and IoT technology in the Taiwan food supply chain industry can be categorized into several key areas:

  1. Improved supply chain transparency: Blockchain can record all food information from production to consumption, including the production location, production date, transportation method, and storage conditions. This allows consumers to trace the food source, ensuring its safety and reliability.
  2. Improved Supply Chain Efficiency: IoT can collect data such as the temperature and humidity of food products within the supply chain. This data is transmitted and stored through blockchain, assisting businesses in optimizing supply chain management, enhancing transportation efficiency, and improving food quality.
  3. Reduced supply chain costs: Blockchain can reduce the number of intermediaries, lowering the cost of food distribution. The application of IoT technology can reduce food loss during transportation, lowering business losses.

Here are some specific examples of how blockchain and IoT technologies are being used in the food chain industry in Taiwan:

  1. Fresh food supply chain: The fresh food supply chain is an important part of the food chain industry in Taiwan, but it also faces challenges such as food safety and quality control. Blockchain and IoT technologies can help fresh food supply chain companies improve supply chain transparency and efficiency and reduce food safety risks. For example, the Taiwanese startup company "Shihshangjia" used blockchain technology to establish a "Fresh Food Supply Chain Traceability Platform" that allows consumers to trace the source and production process of fresh food products to ensure the safety and reliability of food.
  2. Cold chain logistics: Cold chain logistics is an important part of ensuring food safety. Blockchain and IoT technologies can help cold chain logistics companies improve transportation efficiency and food quality. For example, the Taiwanese logistics company "Yufeng Logistics" uses IoT technology to monitor temperature and humidity in cold chain transportation and stores the data in blockchain to ensure that food remains within a safe range during transportation.
  3. The Taiwanese government is also actively supporting the application of blockchain and IoT technologies in the food chain industry. In 2023, the Ministry of Economic Affairs of Taiwan launched the "Smart Agriculture Supply Chain Plan", which encourages businesses to use blockchain and IoT technologies to improve the efficiency and safety of agricultural product supply chains. The Council of Agriculture of Taiwan has established a "Smart Agriculture Supply Chain Platform" using blockchain technology. This platform can help farmers, processors, and retailers to trace food, and improve food safety.
  4. Walmart, in partnership with IBM, has developed a food trust platform using blockchain technology to track its meat products from farm to table. The platform uses blockchain technology to record all data from the production, processing, transportation, and sales of meat products. This data includes the name of the farm, the animal's identification number, the slaughter date, the transportation temperature, and the final sales date.
  5. Kentucky Fried Chicken (KFC) is another company that uses blockchain technology to improve its food supply chain. In 2019, KFC partnered with Microsoft to develop a blockchain-based traceability platform for its egg’s products.
  6. Nestlé, the world's largest food company, is also using blockchain technology to improve its food supply chain. In 2023, Nestlé partnered with the Tezos Foundation to develop a blockchain-based traceability platform for its coffee products.

Blockchain is rapidly integrating with IoT technology. As costs decrease and economies of scale form, blockchain-IoT integration applications will become the technical mainstream of the future Taiwanese food supply chain industry. How to make good use of this technology is also an unavoidable challenge for the industry.