Blockchain and traceability interoperability
Blockchain is an infrastructure with characteristics amenable to greater adoption among supply partners than existing traceability tools. It is similar to existing traceability systems in that its goals are to increase interoperability and data availability on your food supply chain. The primary difference comes from blockchain’s ability to decentralize data housing and rely on encryption for data verification and assurance. Blockchain is also different compared to other traceability systems in that all partners have a copy of the shared ledger. Because all of the information is on the same record complete with timestamps, those who need access for an event, such as a recall, can increase the speed of a traceback investigation.
Yes, blockchain can be added to current traceability systems. A blockchain can almost be thought of as an encryption protocol with a networked component. The source code is available from many blockchain vendors and are customizable enough to complement your current system. However, the availability of vendors for implementing blockchain at the moment are small consulting companies and the direct creators of the blockchain software (e.g. Ethereum and Hyperledger).
It depends on your traceability provider, the flexibility of the proprietary software, and the blockchain architecture you choose. If your traceability system hosts its own data, it would be relatively straightforward to transition to a blockchain. However, if your current provider has an all-inclusive system including their own data depository, it may be difficult to implement a blockchain. For a blockchain to be beneficial, traceability systems and data need to be digitized to be added onto it.
Getting started with Blockchain
Blockchain can help internal operations by having a sustained chained record of tracking events of your supply chain. Internal links can be logged into the blockchain database, though most blockchain architectures focus on external traceability. Blockchain solutions for supply chains are designed to be scaled to meet the needs of a broad supply chain network.
Evaluating your systems for blockchain is similar to evaluating your business practices for implementing other traceability systems. These assessments include: evaluating your current traceability technology, assessing how your traceability information is currently stored and documenting, evaluating critical tracking events, understanding your current IT infrastructure, and evaluating your IT personnel capabilities to assess whether you will need external consulting or whether in-house staff may be able to independently implement open-source blockchain code.
At this time, investing in blockchain will most likely not benefit a smaller business, such as a fisher, grower, or rancher, any more than a traditional traceability system. Until blockchain providers become more prevalent, investments should be made in traditional traceability systems for smaller food companies. Larger companies, especially retailers, may start requiring inputting traceability data onto their blockchain system, but smaller companies’ investments would be modifying existing data exchange procedures.
The resources required to manage a blockchain traceability are similar to pre-existing traceability solutions other than specialized labor. Because of the newness and promise of blockchain, the skillset required to manage blockchain solutions have a premium. Blockchain expertise has elements of information security, system administration, and supply chain management. The costs of implementing a blockchain depend on the scale and configuration of your current system. If you have a skilled IT team, you may be able to implement an open-source blockchain solution as an internal project without need for external vendors.
The record on a blockchain is theoretically immutable to change. Sensitive or non-public information can be protected through the use of smart contracts, but this has yet to be put into practice outside of financial institutions.
If a product is on a blockchain architecture, traceback queries can be reduced to a matter of minutes or even seconds. This is because the blockchain has already verified the information links along the supply chain. However, a blockchain is not necessarily unique to this speed. A centrally housed traceability system by an external vendor can also have a fast recall response time. Walmart’s blockchain pilot with Hyperledger has reduced their recall procedure times down to seconds, albeit in a couple of select product types.
Transparency is a concern in a distributed ledger system. The philosophy of many blockchain innovators is to have as much transparency as possible, which may not be among the goals for a food supply chain. Many blockchain architectures are set up so that every transaction’s contents can be seen throughout the network. While this may be good for a vertically integrated distributor, those whom want to protect certain data may have “smart contracts” within a blockchain that governs the accessibility of information. This idea is still under development among blockchain vendors and consulting firms.
Blockchain governance is determined by those setting up the system. Changes to the governance can take place through voting similar to the resolving algorithms of transaction consensus.
Blockchain can help increase traceability information record keeping and increase the speed of recall procedures. Existing traceability systems can be just as effective at keeping with new FDA food rules.
Blockchain is often paired with technologies collectively called Internet of Things (IoT). These are internet-capable devices that provide continuous streams of information networked to work in concert. In food traceability, this means that all devices throughout the supply chain continually monitor and provide updates to the record (which could be a blockchain).
Artificial Intelligence applications will continue to grow, especially in areas of image processing (for quality assurance) and robotics.