Utilizing Blockchain Technology to Address Sustainable Development Goals (SDG`s) Agenda 2: Zero Hunger
Introduction
The United Nations Sustainable Development Goals (SDGs) are a collection of 17 global goals designed to be a blueprint for achieving a better and more sustainable future for all. Among these, SDG 2 — Zero Hunger — aims to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture by 2030. This report explores how blockchain technology can be leveraged to address the challenges associated with achieving SDG 2.
SDG 2: Zero Hunger
Key Targets of SDG 2
· End hunger and ensure access by all people to safe, nutritious, and sufficient food all year round.
· End all forms of malnutrition.
· Double the agricultural productivity and incomes of small-scale food producers.
· Ensure sustainable food production systems and implement resilient agricultural practices.
· Maintain the genetic diversity of seeds, cultivated plants, and farmed and domesticated animals.
· Increase investment in rural infrastructure, agricultural research, and extension services.
Challenges in Achieving SDG 2
According to the Food and Agriculture Organization (FAO), nearly 690 million people were undernourished in 2019, a number exacerbated by the COVID-19 pandemic. Traditional supply chains are often fragmented and opaque, leading to inefficiencies, high costs, and food waste. Small-scale farmers frequently lack access to markets, fair pricing, and financial services, hampering their productivity and income. Agricultural practices are often unsustainable, contributing to environmental degradation and being adversely affected by climate change. Poor data management and lack of transparency in the agricultural sector impede effective decision-making and resource allocation.
Blockchain Technology: An Overview
Blockchain is a decentralized, distributed ledger technology that records transactions in a secure, transparent, and immutable manner. Its key features include:
. Decentralization: No single point of control.
. Transparency: All transactions are visible to participants.
. Immutability: Once recorded, transactions cannot be altered.
. Security: Advanced cryptographic techniques ensure data integrity.
Addressing SDG 2 with Blockchain Technology
Enhancing Food Security
Food Traceability :Blockchain can improve food traceability from farm to fork, ensuring the authenticity and safety of food products. By recording every transaction in the supply chain on a blockchain, stakeholders can track the origin, handling, and journey of food products.
Practical Example: IBM Food Trust utilizes blockchain to connect food supply chain participants through a permissioned, permanent, and shared record of food system data. This enables transparency, accountability, and traceability, reducing food fraud and contamination incidents.
Benefits:
.Reduces food fraud and contamination.
.Enhances consumer trust and confidence.
.Improves efficiency in recalls and reduces food waste.
Empowering Small-Scale Farmers
Access to Financial Services
Blockchain can provide small-scale farmers with access to financial services such as microloans, insurance, and smart contracts. Smart contracts automatically execute and enforce agreements based on predefined conditions, reducing the need for intermediaries.
Practical Example: AgriLedger leverages blockchain to provide financial inclusion to smallholder farmers by enabling transparent and secure transactions. It allows farmers to receive payments directly and access credit and insurance services.
Benefits:
.Provides access to credit and insurance.
.Reduces transaction costs and delays.
.Ensures fair pricing and market access.
Promoting Sustainable Agricultural Practices
Sustainable Supply Chains
Blockchain can promote sustainable agricultural practices by ensuring that only sustainably produced products are certified and traded. Certifications and compliance data recorded on the blockchain can be verified by all stakeholders.
Practical Example: Provenance uses blockchain to trace the origins and lifecycle of products, ensuring sustainability claims are transparent and verifiable. This helps consumers make informed choices and supports sustainable producers.
Benefits:
.Encourages sustainable farming practices.
.Enhances transparency and trust in sustainability claims.
.Reduces environmental impact.
Enhancing Data Management and Transparency
Decentralized Data Platforms
Blockchain can facilitate the creation of decentralized data platforms where farmers and other stakeholders can share data securely and transparently. This can enhance decision-making, resource allocation, and agricultural research.
Practical Example: AgriDigital is a blockchain-based platform that streamlines grain supply chains by providing real-time data on inventory, transactions, and logistics. This improves transparency and efficiency in grain trading.
Benefits:
.Enhances data sharing and collaboration.
.Improves resource allocation and decision-making.
.Supports agricultural research and innovation.
Real-World Examples of Blockchain Initiatives
. IBM Food Trust has partnered with major retailers like Walmart to enhance food traceability and safety. By using blockchain, they have reduced the time it takes to trace food items from days to seconds.
. AgriLedger has implemented blockchain solutions in Haiti to support fruit farmers by providing transparent and secure transactions. This initiative has improved market access and income for smallholder farmers.
. BanQu uses blockchain to create a digital identity for small-scale farmers, enabling them to access financial services and connect with global supply chains. This has helped improve livelihoods and economic inclusion.
Potential Benefits of Using Blockchain for SDG 2
1. Blockchain enhances transparency and trust across the food supply chain, from production to consumption.
2. By eliminating intermediaries and streamlining processes, blockchain reduces costs and improves efficiency.
3. Blockchain provides small-scale farmers with access to markets, financial services, and fair pricing, empowering them economically.
4. Blockchain supports sustainable agricultural practices by ensuring compliance with sustainability standards and promoting responsible production.
Limitations of Using Blockchain for SDG 2
Current blockchain networks face scalability challenges, limiting their ability to handle large volumes of transactions. Implementing blockchain solutions requires technical expertise and infrastructure, which may be lacking in rural and underdeveloped regions. The regulatory landscape for blockchain technology is still evolving, creating uncertainty for its adoption in agriculture. Ensuring data privacy and security on a public blockchain can be challenging, especially with sensitive agricultural data.
Regulatory and Technical Considerations
Regulatory Considerations
Governments need to develop clear legal frameworks to regulate blockchain technology, ensuring compliance with existing laws and protecting stakeholders. Regulations should address data privacy and protection, ensuring that sensitive information is securely managed. Establishing standards and certification processes for blockchain-based agricultural products can enhance trust and adoption.
Technical Considerations
Developing and implementing scalable blockchain solutions, such as sharding and layer-2 protocols, can address scalability challenges.
Ensuring interoperability between different blockchain platforms can enhance collaboration and data sharing. Investing in digital infrastructure, such as internet connectivity and blockchain nodes, is crucial for adoption in rural areas.
Recommendations for Policymakers, NGOs, and Developers
.Policymakers
1. Create policies that support the adoption of blockchain technology in agriculture, including funding for research and development.
2. Encourage collaboration between governments, private sector, and NGOs to develop and implement blockchain solutions.
3. Ensure that blockchain initiatives are inclusive, benefiting small-scale farmers and marginalized communities.
.NGOs
1. Educate farmers and stakeholders about the benefits of blockchain technology and provide training on its use.
2. Implement pilot projects to demonstrate the potential of blockchain in improving food security and agricultural practices.
3. Advocate for policies and regulations that support the adoption of blockchain technology in agriculture.
. Developers
1. Develop blockchain solutions that are user-friendly and accessible to non-technical users, especially small-scale farmers.
2. Ensure that blockchain solutions prioritize data privacy and security, protecting sensitive agricultural data.
3. Work closely with farmers, agribusinesses, and policymakers to develop solutions that address real-world challenges and needs.
Conclusion
Blockchain technology holds significant potential to address the challenges associated with achieving SDG 2: Zero Hunger. By enhancing transparency, efficiency, and inclusivity in the agricultural sector, blockchain can contribute to food security, sustainable agricultural practices, and economic empowerment for small-scale farmers. However, realizing this potential requires addressing technical and regulatory challenges, fostering collaboration among stakeholders, and developing user-friendly solutions. Policymakers, NGOs, and developers play a crucial role in leveraging blockchain effectively to achieve SDG 2 and create a more sustainable and equitable food system for all.
Author