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Blockchain Technology

By Kavin Manoharan

A decentralized immutable append-only public ledger​

Example: Blockchain for Milk Supply Chain in India

Problem:

In India, the milk supply chain involves multiple stakeholders like farmers, collection centers, processing units, distributors, and retailers. Challenges include:

  • Lack of transparency in milk quality and pricing.
  • Delays in payments to farmers.
  • Difficulty in tracing the source of milk in case of quality issues (e.g., contamination).

Solution:

A blockchain-based system is implemented to track milk from the farm to the consumer. Here's how it works:

  1. Farmers Register Milk Production:

    • Farmers record details like milk quantity, quality (fat content, purity), and timestamps on the blockchain when they supply milk to collection centers.
  2. Collection Centers:

    • Collection centers verify the milk quality and update the blockchain with additional details (e.g., temperature, storage conditions).
  3. Processing Units:

    • Processing units (e.g., dairy companies) record processing details like pasteurization, packaging, and batch numbers on the blockchain.
  4. Distributors and Retailers:

    • Distributors and retailers update the blockchain with shipment and delivery details, ensuring the milk reaches stores on time.
  5. Consumers:

    • Consumers can scan a QR code on the milk packet to see the entire journey of the milk, from the farm to the store, ensuring transparency and trust.

Benefits:

  • Transparency: All stakeholders can access real-time data, ensuring trust and accountability.
  • Fair Payments: Farmers receive timely and fair payments through smart contracts.
  • Quality Assurance: Contaminated milk can be traced back to its source quickly, ensuring food safety.
  • Efficiency: Reduces paperwork and manual errors, streamlining the supply chain.

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