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1 1 (May 12, 2021)

handle is hein.crs/govedgt0001 and id is 1 raw text is: Blockchain Technology and Agriculture May 12, 2021 Some stakeholders in the technology, agriculture, and food sectorhave advocatedforthe useofblockchain technology to trace agriculturalproducts as they move through the supply chain and to verify their authenticity. Many expect use ofblockchain technology to increase in this sector. Congress may consider federalinvestments in blockchain technology research, technical as sistance, and infras tructure to supportemerging applications of this technology. Congress also may face questions regarding theregulation of particular uses of blockchain technology. What Is Blockchain Technology? Blockchain is a distributed ledger technology for securely recording and authenticating information about sequential events or transactions. It is commonly as sociated with the financial services sector due to its use in cryptocurrencies, but it also has potential applications in agriculture. Unlike traditional data systems, blockchain technology does not rely on a central authority to maintain records or verify transactions onbehalfofusers. Instead, members ofa blockchain platformeach have access to automatically updated copies of all trans actions. Every transaction is recorded in a new block in the chain. Each blockhas several pieces of information: the data itself; a hash value, or alphanumeric s tring, cryptographically determined by the data; and the hash of the previous blockin the chain. Selected Blockchain Qualities Tamper-Evident. The data in each block in a blockchain has a cryptographically determined hash (an alphanumeric string). Each block contains the hash for the current and prior transactions. Altering data inherently alters its hash. Thus, data tampering is evident when a block's hash and the next block's record of the prior block's hash do not natch. Tamper-Resistant. Blockchain community members each have access to automatically updated copies of the blockchain. If the data in one copy is tampered with, it would not match the other copies, and the community would not accept that chain as the consensus chain of events. Transparent. Although each member of a blockchain community may not have permission to read the data in each block, each member has access to a current copy of the ledger and can view changes and additions to the chain. Decentralized. Blockchain does not rely on a central authority to maintain data. Consensus among the community serves this role. Designers of a blockchain can customize its rules depending on thelevel of trust among community membeis and other variables. For example, the blockchain community can be public or private, with varying levels of trust granted and information accessible to different members. Potential Applications in Agriculture Recent outbreaks of foodborne illnes s and investigations of fraud in the organic food sectorhave illuminated weaknes ses in information about agricultural supply chains. Proponents viewblockchain technology as a potential solutionto certainexisting concerns, such as the following: * reducing thetime it takes to identify the sourceof foodborne illness; * targeting food forremovalas opposed to the loss of entire stocks; and * ensuring claims made about food (e.g., authenticity of being organic). Potential Challenges for A griculture While blockchain technology is a potential solution to sont is sues in agriculture and food supply chains, certain general and sector-specific challenges may impede its utility and adoption. Another consideration is that in many instances, solutions that are simpler and less resource -intensive than blockchain technology may adequately address specific needs. Prospective users may consider whether the potential benefits ofblockchain technology outweigh any limitations or costs particular to their situations. Infrastructure: Internet Access Blockchain requires an internet connection to upload new data to the blockchain and to maintain updated copies of the ledgerheld by community members. Lackofinternet access, or inconsistent access, in locations where agricultural products originate and are processed and packagedmay impede successfuluse of this technology. Standards and Interoperability As with many new and emerging technology applications, there are not yet consistent standards and digitalplatforms to facilitate the shared use ofblockchain technology by multiple users across the agriculture and food sector. All members ofa single supply chain mustadoptthe same standards and platformto participatein a shared blockchain. Lackof adoption, or adoption ofdifferent standards and platforms, could exclude some suppliers or providers ofother services (e.g., packaging, transportation) fromcertain supply chains. Sunkcosts of initial technology investments could tie participants to a particular supply chain and impede their flexibility to work with other elements of the food system. https://crsreports.congre&

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