According to a recently published study by Juniper Research, blockchain can save as much as $31 billion from being lost in food fraud globally.
The research made public on 25 November reveals that the blockchain technology can be combined with the Internet of Things (IoT) to successfully manipulate sensors and trackers for bringing down the retailer’s cost. This can be achieved by streamlining supply chains and simplifying the regulatory compliances, the result of which would not only be efficient food recalls but also reduced frauds.
The study maintained that the use of the combination of blockchain technology and the Internet of Things would add value to the supply chains associated with food businesses. More importantly, by adopting such a measure, the food industry can save up to $31 billion, which otherwise get lost in food fraud.
Lack of Transparency
Dr. Morgane Kimmich, who conducted the research maintained that in the present day, transparency in food supply chains is non-existent due to ‘opaque data’. He further said that as a result, the companies have to rely on third parties and paper-based records.
He suggested that the solution to the problem of the lack of transparency in the industry lies in a smart combination of IoT and blockchain. This combination, according to him, can help all the actors in the supply chain gain a platform for tracking and tracing assets. He also said that the solution can save time and resources as well.
According to the research, all this can be achieved in a mere time period of five years, and by 2021 itself, a lot of fraud money can be saved. On the other hand, the costs related to regulatory compliance can be brought down by 30% by the year 2024.