Panama initiated an innovative step to embrace blockchain technology for improving food production. Besides using disruptive technology, the country intends to rely on big data, robotics, the internet of things and artificial intelligence. The CIPAC AIP, or Controlled Environment, Research and Production Center, have been asked to use blockchain to control and manage agricultural production.
Panama embraces blockchain in food production
The CIPAC AIP portrays an ardent desire to enhance food production, security and competitiveness using advanced technology. The country’s new perspective is expected to boost the digital economy. During the LATAM Panama Summit 2022, the crypto industry experts made some remarkable revelations on web3.0, which relates to this emerging technology’s potential to boost the economic growth of Latin American countries.
As the popularity of crypto and blockchain rises, different industries are utilizing them to offer a better experience to customers and boost the digital economy. Latin America is devising more initiatives to help the agricultural sector boom as it has the potential to generate employment. Earlier in May 2022, Agrotoken was launched to enable farmers and those associated with food production to purchase agro-based products.
Food industry and blockchain technology
The ease of traceability and transparent policies make blockchain the best technology for the food industry. Some food companies have already realized its significance and hence used it to track frauds, improve traceability and keep a check on responses to food-borne illnesses. Per reports, the global food supply chain has undergone phases of inconsistency and system malfunctions that grimly impacted the industry.
Blockchain can help improve the supply chain, enable faster product delivery and foster real-time coordination between trading partners. This emerging technology can be utilized in four different arenas in a food production scenario, and they are:
- Better product visibility and traceability
- Smart contract between traders
- Improved food supply chain
- Foster product’s data security
Blockchain helps control and manage incidences of food tampering or other frauds. Panama’s initiative is expected to bring positive changes to the food production processes, thereby developing the country’s digital economy.
