On the role of blockchain technology in the development of modern agriculture

Briefly describe the role of blockchain technology in the development of modern agriculture, such as making agricultural products traceable, insuring crops, directly promoting the docking of production and marketing, making agricultural transactions more convenient, and making agricultural finance more efficient.

1. Make agricultural products traceable: The most common use of blockchain in food and agricultural supply chain is to improve traceability. It enables companies to quickly track the source and distribution of unsafe agricultural products. This can prevent diseases, save lives and reduce the cost of recalling products.

2. Crop insurance: In the agricultural field, smart contracts have a unique way of realization, which can help farmers insure crops and claim compensation from insurance companies. In the past, it was a painful, slow and difficult process for growers and companies that provided insurance for them.

3. Directly promote the docking of production and marketing: With smart contracts, farmers will get rid of the restrictions of multiple middlemen. Farmers will be more relaxed when they know that the products will be delivered to the end users intact.

4. Make agricultural transactions more convenient: The blockchain in agriculture has a unique positioning, which can not only simplify the transaction process, but also provide a level playing field for small-scale farmers and crop growers (especially farmers in poverty-stricken areas). Blockchain technology can ensure the independent pricing of agricultural producers, create a fairer competitive environment for farmers in poor areas and strive for greater benefits.

5. Make agricultural finance more efficient: the financing cost of agricultural workers is high. Because they lack important credit history records and land ownership documents, it is difficult to obtain bank loans. Therefore, farmers are usually forced to borrow money from money lenders, and the interest rate is much higher. Skilled agricultural entrepreneurs are using blockchain to create investment tokens and raise funds for agricultural enterprises.