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Blockchain in Agriculture A PESTELS Analysis.docx
1. Base paper Title: Blockchain in Agriculture: A PESTELS Analysis
Modified Title: Agriculture and Blockchain: A PESTELS Analysis
Abstract
Blockchain (BC) represents a disruptive technology that has been extensively used to
ensure immutability of digital transactions. Starting as an underlying mechanism in the digital
currency sector, it has been applicable in a wide range of sectors and application domains.
Agriculture represents a sector of significance for overall sustainability challenges that is
benefiting from digitalisation and technological evolution and the enforcement of Industry 4.0
paradigm shift towards precision agriculture. Introduction of Internet of Things, and Cyber-
Physical Systems increase overall complexity, with Big Data analysis and Machine Learning
technologies paving the way for innovative applications. BC appears to be a promising
technology for agriculture introducing new mechanisms for tracing of products and overall
agricultural Supply Chain management from the farm to the fork. The authors perform a review
of 152 scientific works, providing a concise summary for each and extracting current
challenges and open issues for the application of BC in agriculture. By synthesizing their
findings, they perform a state of the art analysis along the PESTELS framework. A large
number of challenges including technological ones, create big research potential for the
evolution of the area.
Existing System
United Nations (UN) 2030 Agenda for Sustainable Development [1], represents a plan
of action for people, planet and prosperity, to address the major challenges facing humanity.
Its 17 Sustainable Development Goals (SDGs), embodying the Agenda, set targets mandating
the involvement of the entire Quadruple Helix stakeholders. At least two of the SDGs are
related to the agricultural sector: SDG 1, focusing on the fight against poverty, and SDG 2,
envisaging a world with zero hunger. Both address the challenge of Food Security identified
as a critical element due to a combined mix of global population growth, urbanization trends,
degradation of farmland, climate change induced risks, and food waste [2]. It is estimated that
in order to guarantee food security, agricultural production should increase by 70 percent by
2050, exploiting technologies leading to Agriculture 4.0. The achievement of UN SDGs by
2030, mandates significant allocation of resources estimated to USD 2.5 trillion per year [3]
2. before the COVID-19 pandemic. The pandemic has had a significant impact on SDGs [4]
erasing some of the progress, slowing down their implementation, reallocating resources to
immediate priority sectors. Technological evolution and overall digitalization driving towards
Agriculture 4.0 can act as enablers for a more sustainable and resilient agrifood sector and
significantly contribute to the achievement of the UN SDGs. Cyber-Physical Systems (CPS)
lie at the cross section of physical and digital worlds, and present a wide range of applications
in different domains [5], [6] enabling what is known as Industry 4.0 [7], [8] paradigm shift.
The applicability of such a CPS-enabled paradigm, based on deployed sensory and embedded
systems infrastructure, generating Big Data to be utilized by Machine Learning (ML) and
Artificial Intelligence (AI) algorithms to the end of providing advanced services and products,
is wide covering almost every aspect of modern life and leading to Society 5.0 [9], [10] model
shift. Smart agriculture and food are among the application domains affected by this evolution.
Blockchain (BC) represents a disruptive technology [11] with applicability in different
domains. Starting as the technology behind the development of the crypto currency Bitcoin
[12], it is based on a distributed non-coordinated peerto-peer network, that timestamps
transactions by hashing them into a proof-of-work on-going chain. Alongside the wider
technological evolution associated with the Industry 4.0 transition, BC technology can offer
opportunities related to transaction security aspects.
Drawback in Existing System
Political:
Drawback: Lack of Regulatory Frameworks
Explanation: The political landscape may not have clear regulations and standards for
the implementation of blockchain in agriculture. The absence of regulatory guidance
can lead to uncertainty and hesitancy among stakeholders.
Environmental:
Drawback: Energy Consumption
Explanation: Some blockchain networks, especially those using proof-of-work
consensus mechanisms, can be energy-intensive. This may lead to concerns about the
environmental impact, especially if the agricultural sector embraces blockchain on a
large scale.
3. Legal:
Drawback: Lack of Legal Clarity
Explanation: Legal uncertainties regarding issues such as data ownership, smart
contract enforceability, and liability in case of system failures can create challenges.
Ambiguity in legal frameworks may hinder the widespread adoption of blockchain in
agriculture.
Sociocultural:
Drawback: Limited Technological Literacy
Explanation: Farmers, especially in certain regions, may have limited technological
literacy. Lack of understanding or resistance to adopting new technologies could hinder
the successful implementation of blockchain in agriculture.
Proposed System
Political:
Proposed System: Establishment of Regulatory Frameworks
Explanation: Advocate for the development of clear political and regulatory
frameworks supporting the integration of blockchain in agriculture. Engage with
policymakers to create an environment conducive to innovation and technology
adoption.
Environmental:
Proposed System: Sustainable Blockchain Solutions
Explanation: Explore and adopt environmentally friendly blockchain solutions, such
as those based on proof-of-stake or other consensus mechanisms with lower energy
consumption. Promote sustainability as a key aspect of the proposed system.
4. Legal:
Proposed System: Legal Clarity Initiatives
Explanation: Collaborate with legal experts to establish clear legal frameworks
addressing issues such as data ownership, smart contract enforceability, and liability.
Work with policymakers to ensure that the legal landscape supports the implementation
of blockchain in agriculture.
Sociocultural:
Proposed System: Training and Education Initiatives
Explanation: Launch training and education programs to enhance technological
literacy among farmers. Conduct outreach to address any cultural resistance and build
awareness of the benefits of blockchain in agriculture.
Algorithm
Political:
Algorithms Governance:
Explanation: Political considerations include establishing governance structures for
blockchain algorithms in agriculture. This involves defining how algorithms are
developed, updated, and governed, addressing issues of transparency and
accountability.
Technological:
Algorithm Complexity:
Explanation: Assess the complexity of blockchain algorithms employed in
agriculture. Consider the computational requirements, scalability, and adaptability of
the algorithms to diverse agricultural processes and systems.
Sociocultural:
Farmer Adoption Patterns:
Explanation: Analyze sociocultural factors influencing the adoption of blockchain
algorithms among farmers. Consider aspects like trust in technology, willingness to
embrace digital solutions, and cultural perceptions of data ownership and sharing.
5. Advantages
Political:
Transparency and Accountability:
Advantage: Blockchain can enhance transparency and accountability in the
agricultural supply chain. Political entities can leverage this to combat fraud, ensure
fair trade practices, and strengthen regulatory compliance.
Environmental:
Sustainable Agriculture:
Advantage: Blockchain can support sustainable agriculture practices by providing a
transparent and traceable supply chain. This transparency encourages environmentally
friendly practices and allows consumers to make eco-conscious choices.
Legal:
Smart Contracts for Agreements:
Advantage: Smart contracts on blockchain can automate and enforce agreements in a
transparent and irreversible manner. This reduces legal disputes, streamlines
transactions, and ensures contractual obligations are met.
Sociocultural:
Trust in the Supply Chain:
Advantage: Blockchain fosters trust by providing a tamper-resistant and immutable
record of transactions. This can enhance consumer confidence in the safety and
authenticity of agricultural products.
Software Specification
Processor : I3 core processor
Ram : 4 GB
Hard disk : 500 GB