Reinventing Track and Trace in Food and Drug with Blockchain
Blockchain is one technology that is redefining not just processes but many sectors altogether.
It has introduced an entirely new set of possibilities across businesses, society, and humanity. While most evangelists, practitioners, and enthusiasts like me have encountered this question of “where are the use cases of Blockchain” for the past decade, yet more and more use cases are emerging in abundance and each one is diverse from the other. Some are a simple replication of existing ideas in a more optimized manner by use of blockchain, like fiat-based payment getting replicated by cryptocurrency or physical contracts being replaced by smart contracts.
However, some use cases have the potential to not just transform but totally disrupt existing ideas, examples being track and trace of products especially Food and Drug. The simple idea of blockchain-enabled trust-backed traceability can reduce food loss, increase the incomes of farmers, make quality food and medicines accessible to millions, reduce the cost of delivery of genuine products to?the masses, or even enabling charity to reach those who deserve it the most.
Food and Drug - Keys to Society's Wellbeing
Food and Drugs are not just any other product but are fundamental to our health and hence the wellbeing of our society.
Effective and efficient Food and Drug ecosystem is vital for public health as it ensures the safety, efficacy, and security of food supply, human and veterinary drugs, biological products, cosmetics, and medical devices.
The total size of the global Food and Drug market was more than US$ 20 Trillion in 2020, with the fast-moving?consumer goods?(FMCG)?sector valued at US$ 12 Trillion, the agrifood sector valued at US$ 8 Trillion, and the pharmaceuticals sector valued at US$ 1.5 Trillion.
Blockchain - An Unparallel Innovation
Just a few years back it was impossible to imagine living in a world where executing a cross-border multimillion-dollar food commodity deal, buying a large consignment of aortic valve implants, or accepting payment from a stranger could have been done without needing trust. Today you can just trust the code. No third party is required. That is what are the possibilities and the promises of an unparallel innovation like blockchain.
Blockchain provides a very high level of safety and security when it comes to exchanging data, information, and money. If we place the technical requirements, apprehensions of misuse and lack of understanding on the side and let our minds wander and explore the possibilities we begin to realize the enormous potential blockchain brings to the table.
Blockchain technology is the convergence of three main components: distributed network, digital transactions, and stored ledger. While blockchain technology is still considered to be in the infancy phase of its life cycle the range of companies and industries working to bring it to maturity will surely surprise you. These real-world use cases are exciting, scalable, and impactful. Surely we are a little far away from the ultimate use cases of blockchain but what is currently available is surely not ignorable. Currently, we are in the frontier stage where speculators are challenging the traditional methods and players. A mix of large companies, governments, and entrepreneurs are engaging with blockchain and various stages of transformation if not outright disruption.
These innovators, forward thinkers, and risk-takers are necessary for every technological advancement and revolution and must be motivated and encouraged. While many of these ideas will fail and billions of dollars will be lost and dreams shattered just like any other technology disruption, however from these attempts, the best of the best will rise, and change how we live, work, learn and play.
The global blockchain market is valued at US$ 3 Billion in 2020 and it will grow at an impressive Compound Annual Growth Rate (CAGR) of 67.3% during 2020–2025 to reach US$ 39.7 Billion by 2025. The current dominant region for blockchain adoption are North America and Europe with close to 78% market share but moving forward APAC, North America and Europe each will contribute between 28-32% of the global blockchain market.
The global blockchain in agrifood sector market size is valued at US$ 133 Million in 2020 and is projected to grow at a CAGR of 48.1% to reach US$ 948 Million by 2025.
The global blockchain in pharmaceuticals and healthcare sector market size is valued at US$ 1.43 Billion in 2020 and is projected to grow at a CAGR of 62.1% to reach US$ 16 Billion by 2025.
The global blockchain in FMCG and retail sector market size is valued at US$ 116 Million in 2020 and is projected to grow at a CAGR of 60% to reach US$ 1.21 Billion by 2025.
Some of the evident use cases of blockchain in the food and drug segment include
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Out of the global blockchain market in the food and drug segment of US$ 1.68 Billion in 2020, approximately US$ 1.07 Billion was for track and trace.
Blockchain - Shining Innovators
While the innovation is happening in blockchain at the speed of the light in the food and drug segment two of them are RealMeds and TraceX Technologies. Both companies from India are creating buzz and delivering impact on the ground.
RealMeds - https://www.realmeds.io
RealMeds is an anti-counterfeiting solution for drugs. The solution offers complete track and traceability and employs emerging technologies to detect fake medicines, thus protecting a brand, increasing revenue, and saving lives. The solution uses Blockchain, AI, and IoT to contain the fake medicine problem. And, it is offered as Platform-as-a-Service (PaaS) for super-easy integration with existing supply-chain workflows. The APIs and real-time events are offered for any upstream or downstream integration and workflow automation.
TraceX Technologies - https://tracextech.com
TraceX is a next-generation digital agriculture platform that leverages Blockchain to connect multiple participants across the food and agri supply chain and help them securely exchange verifiable and auditable data leading to mutual trust, accountability, traceability, and transparency amongst the participating actors.
About Author
DEEPAK PAREEK, CEO, AgriWatch, Technology Pioneer & Expert – Digital Transformation, World Economic Forum??
Deepak is CEO of AgriWatch a consulting firm that provides market intelligence, research, and advisory services across the agribusiness value chain. AgriWatch is bridging the information and insight gap that exists in various sub-sectors of the agricultural economy in general and agricultural commodities trade in particular through access to lakhs of farmers and thousands of traders.
Deepak, before joining AgriWatch was Managing Partner at HnyB, a consulting company specializing in Social Domain, working to create an ecosystem to deploy cutting-edge technologies in Agriculture. He has 22 years of diverse experience working across 34 countries on various projects.
Deepak is a serial social entrepreneur who created some of the most respected AgriTech companies, DigiAgri, MyCrop, and AgriChain. These companies use cutting-edge technologies for improving the profitability and productivity of small and marginal farmers on one hand and providing valuable insights to agriculture ecosystem participants on the other.
Deepak was honored as Technology Pioneer 2018 by the World Economic Forum and a member of the Expert Panel of the World Economic Forum on Digital Transformation. He was awarded as top 10 Agropreneur by Future Agro Challenge and was also amongst the top 100 Social Entrepreneur listed by the National University of Singapore and DBS Foundation.
Deepak is a regular speaker across the globe and a well-published author. He has also moderated and Chaired many events related to Agriculture, Digital Transformation, and Global Business. He is also the host of the web series “Fire Side Chat with Champions” in which we interview global business leaders. He has been profiled by reputed publications/media including Forbes, Nikkei, Channel News Asia, YourStory, Nasscom Research, Inc42, Business Insider to name a few.
RETIRED at RBI
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