eLivestock Global and nChain will launch a blockchain-based system to track cattle and provide financial support to farmers.
eLivestock CEO Chris Light explained that each animal will have a unique “digital passport” with information about the owner, vaccinations and movement. The data is collected using a radio frequency identification (RFID) tag on the animal’s ear and can be scanned through a dedicated mobile app.
This information, the developers assure, will be stored in a transparent distributed ledger and will remain available to any interested parties: from banks to beef buyers. With the help of blockchain, farmers will be able to receive payments automatically. The system will eliminate the risk of data duplication and the need for intermediaries, as well as reduce operating costs.
Light noted that there is currently no single approach to addressing problems related to cattle diseases or climate change due to the lack of an international identification system. Many African farmers do not have a bank account and cannot prove ownership of livestock. This means they cannot pawn animals for a loan. Farmers’ current attempts to solve the problem remain futile, as farmers depend too much on the support of non-governmental organizations. The other side of the problem is that private companies that store data and process payments charge a large fee for this.
“Blockchain can serve not only to make payments, but also to solve real problems that local farmers face. We are excited to work with companies like eLivestock that are ready to harness the unique potential of blockchain,” added Leandro Nunes, Director of Commercial at nChain.
Blockchain began to be used in agriculture a few years ago. Back in 2018, Australia launched a blockchain-based system to track beef shipments. And in 2019, the US National Pork Producers Council began testing blockchain technology.
Source: Bits
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