Farmsent and Peaq Partner to Decentralize Agricultural Supply Chains, Boost Transparency
Summary:
Farmsent, an agriculture-focused blockchain company, has collaborated with Peaq, a layer-1 DePIN-focused blockchain, aiming to decentralize agricultural supply chains and increase transparency in global food trade. By using a decentralized physical infrastructure network (DePIN) of sensors, Farmsent removes reliance on centralized intermediaries, thus cutting costs and ensuring traceability. The strategic alliance facilitates direct transactions between farmers and consumers, bypassing traditional intermediaries. The technology helps farmers with better market access and data-driven decision-making. For consumers, it offers insights into farm practices, food origin, and growth processes.
In efforts to disrupt the international food commodity marketplace and uplift farmers, the agriculture-focused blockchain company, Farmsent, has entered into a strategic alliance with Peaq, a layer-1 blockchain with a focus on Decentralized Physical Infrastructure Networks (DePIN). Announced on April 9, this venture underlines Farmsent's commitment to making agricultural supply chains decentralized, with an aim to amplify transparency in global food transactions, bridging growers directly with buyers worldwide through a global Web3 platform. By utilizing a DePIN of sensors that monitor product quality and its origin, Farmsent aims to remove reliance on centralized intermediaries, allowing costs to be cut for all concerned parties while increasing the traceability within the supply chain.
In a discussion with Cointelegraph, Farmsent's co-founder and CEO, Yog Shusti, shed light on the role of DePINs in agriculture. Shusti emphasized Farmsent's DePIN utilization to be "extremely advantageous for agriculture" because it benefits both farmers and shoppers. It provides farmers with digital IDs for greater market accessibility and imparts real-time crop data such as soil humidity, acidity, and wetness. This available information equips farmers with insights for "data-driven decision-making" to maximize crop health and crop yield. As for consumers, the DePIN system enables them to learn more about their foods. "This could include information about farming protocols, food origin, and growth processes. It gives consumers the power to make educated decisions on what they place on their plates.”
Presently, the state of global food trade emphasizes the sudden need for a change. Despite being the lifeblood of the industry, farmers typically receive a disproportionally small share of market value.
To address this, Farmsent plans to eradicate traditional middlemen and facilitate direct dealings between growers and buyers and already have over 160,000 farmers from Indonesia and Colombia on board. The platform, still in its beta phase, is actively being used to monitor coffee, avocado, and palm sugar trades between Indonesia, Colombia, the UAE, where it already holds a license, and the USA. Farmsent disclosed that they are currently processing three additional licenses.
Shusti conveyed that traditional blockchains can make storing extensive sensor, farm, and partner data costly. "As Farmsent enlarges its operations to fresh markets and engages with more growers and buyers, the volume of data and transactions in the network will inevitably grow.” Therefore, Peaq was selected for its cost-effective data storing and scalability features. Peaq has acquired recognition recently, successfully raising $15 million in a Series A funding round led by Generative Ventures and Borderless Capital. In the past, it has collaborated on DePIN projects with significant corporations like Bosch and even tokenized 100 Teslas for a decentralized Web3 ride-sharing enterprise across Europe.
The task of managing the data and transactions of farmers and business owners worldwide isn't only a significant feat for scalability but also for assuring the security and safety of the information. According to Farmsent's CEO, its DePIN network gathers data from three sources. Some data are inputted manually and then verified. IoT sensors spread throughout the supply chain (on farms, in storage facilities, during transport) collect data like temperature, humidity, and freshness. They also gather data from third-party partners like logistics companies who supply transport and storage conditions.
In order to ensure data security, Peaq Decentralized Identifiers (DIDs) are employed. Shusti informed Cointelegraph that DIDs function as unique identifiers on the blockchain linked to data without exposing the actual information. This method ensures data validation and controlled access while protecting sensitive data.
Peaq's co-founder, Till Wendler, described agriculture sector's use case as not only thrilling but also among the most crucial ones. It promises to combat global food insecurity and "supply individuals worldwide with cheaper and higher-quality produce" — and in a secure manner.
Published At
4/9/2024 12:00:00 PM
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