There was a time when experts around the world considered blockchain to be another internet bubble, which would burst very soon. The technology was introduced in 2009, as a platform for the famous cryptocurrency, Bitcoin, and we are talking about it in 2019. Neither blockchain nor cryptocurrencies have burst yet.
For the past few years, blockchain has been growing gradually and has now become one of the most demanded technologies across the globe. When it was launched, nobody would have thought that technology could be used in numerous traditional business sectors, like banking and finance. Nonetheless, blockchain turned out to be one of the best technologies of the 21st century. Studies conducted over the years have proved that blockchain has immense potential, more than anyone could have ever imagined.
Lawmakers from the US state of Colorado have sought exploration of blockchain for the agriculture industry. This is another possible application of technology, which has surfaced after extensive research. Representatives and senators from the state have jointly filed a bipartisan bill asking the commissioner of the Department of Agricultural, to formulate an advisory group to research potential applications of blockchain technology in agricultural operations.
The lawmakers presented several cases which could be imitated to improve agricultural processes. Benefits of applying blockchain to agriculture include recording, maintaining and verifying data for production and transportation, certification of organic food, control over inventory, etc.
If sufficient research is conducted on the technology, it could prove extremely beneficial for the agriculture sector. Continuous researchers are being conducted on blockchain technology, opening your possibilities with each passing day. Banking giants like HSBC and JPMorgan had successfully implemented the revolutionary technology in the sector, which was not even imagined when blockchain first came into existence. JPMorgan, one of the largest investment banks globally also expressed its plans to introduce its own cryptocurrency in the market.
A report was released by HSBC earlier this year, claiming that the banking behemoth had successfully utilized the blockchain platform to execute Forex transactions worth $250 billion. Apart from these, there are several examples in the market where blockchain was applied to processes to improve efficiency and reducing costs. In the past couple of years, the blockchain space has gained significant traction with giant corporations entering the space.
According to data published by the UN World Intellectual Property Organisation (WIPO), blockchain based patents filed in 2018 group by 50% of the number from the previous year. Currently, China and the United States our leaders of the blockchain market. Introducing the innovative technology the agricultural sector could do wonders to the sector in terms of cost efficiency and reduction in wastage. The advisory group will conduct its research and report back to the assembly on January 15, 2020, with its findings and suggestions.
Though this call for blockchain in agriculture is a first in the United States, it has preceding examples globally. In February earlier this year, French President Emmanuel Macron asked for extensive use of blockchain technology across Europe, to boost agriculture and address concerns related to traceability, particularly after the Polish meat scandal. In October 2018, the big four of the agriculture business, Archer Daniels Midland, Bunge, Cargill, and Louis Dreyfus, commonly known as ABCD, reportedly looking for ways to incorporate blockchain and artificial intelligence in the sector.
One of the major divisions of agriculture is supply chain management which is already being revolutionized by blockchain. E-Commerce giant like Alibaba and Amazon has implemented blockchain-based applications to their supply management processes, which has resulted in increased efficiency, and reduction in time and costs.