The United Nations agency released a report assessing the potential of blockchain technology in seafood value chains to fight hunger, FAO.
The 56-page document, published in Rome, Italy, and available free of charge on the FAO platform, establishes a number of recommendations for the implementation of traceability of marine species with the blockchain.
The aim of the publication is Eliminate the myth about Bitcoin’s disruptive technology and identify the opportunities and challenges in implementing blockchain-based systemsand documented some case studies on its use in the value chain of hydrobiological resources.
The document recognizes the commercial potential of the fishing industry, which is said to be one of the most commercialized goods in the world. According to the FAO, around 35% of global fish production in various forms went into international trade for human consumption or for inedible purposes in 2016.
The report also shows that exports of fish and fishery products from developing countries reached 54% of the total in 2016 and 2017, with the export rate from developing countries as a major player increasing rapidly. .
The publication specifies the traceability of the chain as a substrate on which digital solutions have to work. Offers a comprehensive introduction to blockchain and covers smart contractsexamines how they relate to blockchain using an example of their use in seafood value chains, and then examines the key operational and development variables for blockchain applications.
The report also examines considerations of legality, transparency, species fraud and food security and identifies general controls that form the basis for monitoring and traceability with blockchain.
The FAO study uses the ISO 8402: 1994 definition of traceabilityThis defines the traceability of a product as “the ability to track a company’s history, application or location based on registered identifications”.
In its document, the FAO analyzes the supply chain for fish and seafood, taking into account the fleet, the ports, the processing and the markets. In addition, the general control elements that form the basis for monitoring and traceability of the collection are identified, and the sustainability of the blockchain is summarized.
The study’s authors They performed a review and analysis of seven projects to support a key analysis of whether the blockchain is the right tool for traceability of fish and shellfish.
The projects used for the analysis include the first blockchain application in tuna fishing in Fiji, which was funded by ConsenSys and the UN Wildlife Fund in 2017and the Providencia project in Indonesia in 2016 on traceability in the tuna fishing value chain in the Asian country.
At the Latin American level, the report highlights the traceability of shrimp with the IBM Food Trust blockchain in Ecuador in May 2019 as part of the sustainable shrimp fisheries project.
“While the technology contains well-established examples of successful implementation and its further development, implementation is secondary to well-developed, comprehensive traceability along the entire value chain,” the authors recommend.
Also Authors report that current and implementation initiatives for blockchain technology are in the private and industrial sectorsthat only cover part of the value chain for certain market participants without government support. Hence his recommendation to assess the potential of blockchain in the production process by the leading players in every country involved in this sector.