BLOCKCHAIN AND

AGRICULTURE

> UNDERSTANDING,
> EXPLORING, AND
> EVALUATING

OEM AGRO-BUSINESS ERP ENTERPRISE BLOCKCHAIN

The integration of powerful technologies such as Artificial Intelligence (AI), Blockchain, Big Data Analytics, and the Internet of Things (IoT) into
Distributed Enterprise Resource Planning (ERP) systems promises to overhaul the Agriculture Supply Chain. The transformative potential of AI
specifically, emphasizing its capacity to enhance transparency, efficiency, productivity, food safety, and informed decision-making.

The Impact of AI
“Artificial intelligence may be one of the biggest technological leaps in history.” – Goldman Sachs
AI is changing the world around us. Over 77% of companies worldwide are either using or exploring the use of AI.
AI has already transformed several industries, including telecom, BFSI, retail and healthcare. According to The Economic Times, the global AI market is
expected to reach a valuation of approximately $ 1,591.03 billion USD by 2030.
It is no overstatement that the global agriculture sector, too, stands at the threshold of a significant transformation brought on by the application of powerful
new technologies.

“I see the use of AI as an absolute game-changer, a powerful new tool that we can add to our food safety toolbox, one that could significantly enhance our
ability to create a safer food system.” - Frank Yiannis, former FDA Deputy Commissioner for Food Safety

Distributed ERP and Artificial Intelligence: A Quick Introduction

Distributed ERP (Enterprise Resource Planning) is a decentralized approach to ERP systems. Unlike traditional ERP setups where operations are
centralized, Distributed ERP spreads its operations across interconnected modules, leveraging cloud infrastructures and edge computing, aiming for real-
time data sharing, process integration, and decision-making across various geographies and operational centers.

Artificial Intelligence (AI), at its core, is a multifaceted domain of computer science focused on building smart machines that can perform tasks typically
requiring human intelligence. These tasks encompass a range of operations, including but not limited to: recognizing patterns, understanding languages,
solving problems, and making decisions. With the aid of algorithms, data, and statistical models, AI can learn from experience, adapt to new stimuli, and
produce results akin to, and at times surpassing, human capabilities.

How AI Strengthens and Enhances the Advantages of Distributed ERP Systems in the Agricultural Supply Chain

1. Advanced Farm Data Analytics and Forecasting: Agricultural ERP systems handle vast amounts of data from multiple stages in the supply chain. AI
rapidly processes this data, identifying seasonal patterns, and predicting market needs. It can, for example, anticipate crop demand or storage requirements
based on historical yield and sales, ensuring efficient resource allocation and minimized costs.

2. Automated Resource Allocation in the Supply Chain: AI-infused algorithms in the agricultural ERP can streamline decision-making related to the
supply chain. They can, for instance, auto-distribute and prioritize resources such as seeds, fertilizers, or machinery, based on current demands, ensuring
timely deliveries and optimal crop yields.

3. Enhanced Stakeholder Engagement: AI can delve into stakeholder data, feedback, and transaction histories to curate tailored supply chain solutions.
This means adjusting strategies based on local yield patterns, forecasting supply or demand fluctuations, and ensuring marketing strategies are precisely
localized.

4. Refined Agricultural Supply Chain Management: AI improves the supply chain processes within the ERP by forecasting potential market or
environmental disruptions, automating grain or produce storage systems, and determining the best transportation routes using real-time data and predictive
analysis. This results in uninterrupted operations throughout the supply chain's various stages.

5. Boosted Operational Efficiency: Activities such as inventory tracking, billing farmers, or intricate procedures like financial planning can be automated
with AI. This accelerates these processes and reduces the chances of errors, magnifying the efficiency of the agricultural ERP system.

6. Instant Supply Chain Insights: AI's immediate data analysis can offer stakeholders real-time insights, whether about soil health, production rates, sales
trends, or distribution. Such insights empower quick and informed decision-making, vital for the ever-evolving agriculture market.

7. Superior Supply Chain Security: AI solidifies the security aspects of distributed agricultural ERP systems. By continuously analyzing data transfers, it
can highlight inconsistencies or potential security risks, providing an advanced layer of defense against threats.

8. Agricultural Process Automation and Robotics: AI-backed machinery or software solutions can take over repetitive tasks in the supply chain,
minimizing manual intervention and assuring that operations are consistent and error-free. This is particularly essential for systems aiming to harmonize
actions across diverse supply stages.

9. User-centric Supply Chain Interfaces: AI-enhanced chatbots and virtual assistants can be woven into the agricultural ERP, giving users a seamless
interface, addressing questions, and facilitating day-to-day operations. This not only enhances user participation but also simplifies the adoption process.

Conclusion: A Force Multiplier for Distributed ERP in Agriculture

In essence, Artificial Intelligence acts as a force multiplier for Distributed ERP systems in the agriculture supply chain. By offering capabilities that range
from predictive analytics to automated decision-making, AI ensures that distributed systems are not just interconnected, but also intelligent, responsive, and
agile. As agriculture businesses grapple with increasing data volumes and the need for real-time, informed decision-making, the amalgamation of AI and
Distributed ERP promises a paradigm where efficiency, foresight, and innovation are at the forefront.
TABLE OF CONTENTS
Introduction ......................................................................... 3

PART I:
Understanding ............................................................... 4
1 > What is a blockchain? ............................................................................................................................... 4
2 > How does it work?................................................................................................................................... 8
3 > From blockchain to Blockchains (distributed ledger technology - DLT) ................................................. 11
Smart contracts: a major functional shift ................................................................................................ 11
Private Blockchains: a shift in governance ............................................................................................. 11
The blockchain ecosystem: a shift in service development................................................................ 12
4 > Why does blockchain arouse so much interest? .................................................................................... 14

PART II
Exploring its potential .................................................. 16
1 > From promises to examples of uses ....................................................................................................... 16
2 > Examples in all sectors........................................................................................................................... 17
3 > Examples in agriculture .......................................................................................................................... 19

PART III
Evaluating ......................................................................... 29
1 > Is blockchain technology all it is chalked up to be? ............................................................................. 30
2 > Is blockchain technology 100% trustworthy? ...................................................................................... 32
3 > Is blockchain technology mature? ....................................................................................................... 33
4 > Will legal uncertainty be a concern? ...................................................................................................... 35

Conclusion ................................................................................... 37

2
INTRODUCTION

Blockchain: Not a week goes by without this term appearing in the press. It is a trend, to say the least!
This technology, which allows the creation of a distributed and forgery -proof record, or ledger, of
transactions is even hailed as a "revolution", likely to be useful in many sectors. However, despite this
surge in interest, blockchain remains a hard-to-understand technology.
In any case, this was the impression of members of the Agro-Business ERP Digital Agriculture
Business Chair, who were keen to know if and how this technology could affect the agricultural
sector. The Chair decided to conduct its first feasibility study on the subject of blockchain.
The problem with blockchain is that a string pulled to find out more information quickly becomes
a whole ball! We felt it was important to start with the fundamentals, to understand the basis of
the technology and what makes it so innovative. Our goal here is nevertheless humble: to offer an
overview of theory and practice so as to better understand the technology and new possibilities
currently under study. Knowing more will clarify future horizons, both for users and developers of
solutions. Tests and feedback will enrich this overview and provide a comprehensive vision of what
the technology has to offer.

THIS DOCUMENT IS DIVIDED INTO 3 PARTS:

"UNDERSTANDING" "EXPLORING ITS "EVALUATING"

reviews the fundamental POTENTIAL" looks at issues surrounding
principles of blockchain presents several ways the use of blockchain
from a technical perspective the technology is used to reveal any barriers or
and identifies in detail its and focuses on potential shortcomings and identify
main properties. applications in the future technological
agriculture sector. prospects.

3
 PART I:
Understanding
1 I What is a blockchain?
A search for the meaning of 'blockchain' often turns up the
following type of definition:
>"A blockchain is a secure public ledger platform shared by all
parties through the Internet or an alternative distributed network of
computers"
> "A blockchain is an open and secure method of storing and distributing
information which operates without a central server. By extension, a
blockchain is a database containing a record of every transaction between
users from its creation onward. It is a secure, distributed database that is shared
by the different parties without an intermediary, allowing each user to verify the
validity of the chain".
These definitions are clear, but additional information is useful.

A distinction should be made between "the" blockchain and "a" blockchain: (2)
> "the" blockchain refers to a type of technology (or more accurately an innovative combination of pre-
existing technology) developed by a certain Natoshi Sakamoto and revealed in 2008, based on
cryptography, among other things.
> "a" specific blockchain refers to a given protocol and network that an individual or organization can
use. Bitcoin is a blockchain. Ethereum is another.

LET'S REVIEW THE TERMS LEDGER

IN THESE DEFINITIONS
TO CLEARLY UNDERSTAND
WHAT THE TECHNOLOGY
ENTAILS: DISTRIBUTED,
WITHOUT A CENTRAL
SERVER

SECURE

4
 I Blockchain: a "ledger" technology which stores a
Ledger record of transactions
> A record of The 'blocks' in blockchain are batches of transactions. In computing, a
transactions transaction is an indivisible series of operations to go from State A to State
B: a purchase, a payment, or to send a message, for example. A blockchain is
therefore a database to which transactions, grouped together as blocks, are added
in chronological order. It is similar to a ledger, where each line is a transaction. A key
feature of this ledger is that it is written in indelible ink: every page can be consulted,
lines can be added, but existing data cannot be deleted or changed. Users on the peer-to-
peer network receive identical copies of this ledger.

I Blockchain: a technology based on distributed architecture

and governance

A PEER-TO-PEER (P2P) NETWORK...

Distributed computing is a computer system architecture
in which resources are located in different places. These
resources are not organized around a central server. A
blockchain is therefore a network of computers (with
each computer acting as both server and client) which
exchange data directly across the network without
going through a central server (similarly to the peer-to- Centralized Decentralized
peer tools used to share multimedia content, like eMule,
for example). The blockchain eliminates the need for a
central authority. The devices making up the network
are called nodes. The ledger is replicated at the node level.

WHICH OPERATES BY DISTRIBUTED CONSENSUS

In a traditional, centralized system, central servers act as a trusted authority. They verify whether
conditions are met to enable transactions, and then carry them out. However, centralized computing
implies a high level of trust in the central unit and can be a source of risk (attacks are easier at a single
location), infrastructure costs, and longer processing times. These intermediaries do not exist in a
blockchain system. The nodes in the network perform verification and carry out tasks. To do so they
– A majority, in any event – must concur, even if they do not know or trust one another. Blockchain
operates according to a common set of rules based on consensus mechanisms (run by algorithms).
This is a distributed consensus, the result of which is that trust is not limited to a single authority but
spread over an entire network. Different consensus mechanisms exist. We will discuss them later.

5
 I Blockchain: a technology made secure by cryptography
The vast blockchain "ledger" is accessible to all users. This means that the list of
transactions is visible to all. Cryptography, however, is used to:
Secure > make the chain unalterable by linking each transaction block to the preceding
one=> use of hash functions.
> guarantee the signature of transactions => the principle of authentication by public-
key cryptography

Let's look at these two concepts:

HASH FUNCTIONS
Hash functions, or hashes, are algorithms that generate a digital fingerprint from input data (an entire
document, for example): just like a human fingerprint matches a single individual, a digital fingerprint
identifies a single, unique unit of data. The slightest change to the input data will yield a completely
different fingerprint.

These functions ensure that the ledger cannot be altered.

Each block in the chain consists of a header and new transactions. The header of the block stores a
digital fingerprint containing a "digest" of the transactions in the block (the root of the "hash tree" or
"Merkle Tree"). Each block is linked to the preceding one via a hash derived from the header of the
previous block: that way, every block contains a print of part of the previous block, so that even the
slightest change made to a transaction after its consignment results in the entire chain being changed.
Since the chain is duplicated in multiple copies, any modification is noticeable. And given the number
of copies, and the principle of distributed consensus, it is difficult to pass any anomaly onto all the
copies in the chain. Each newly-added block secures the chain a little bit more. This is what makes a
blockchain appear tamper-proof.

Header of block 1 Header of block 2 Header of block 3

Hash of header Hash of header Hash of header

of preceding block of preceding block of preceding block
Version, Date, Difficulty, Version, Date, Difficulty, Version, Date,
Nonce Nonce Difficulty, Nonce
Root of transaction Root of transaction Root of transaction
tree tree tree

Transaction of block 1 Transaction of block 2 Transaction of block 3

Simplified blockchain diagram (for som ething like Bitcoin) (Source: www.ethereum-france.com)

6
 PUBLIC-KEY, OR ASYMMETRICAL CRYPTOGRAPHY

This cryptography method is used to ensure the confidentiality of a data transfer between 2 parties or
ensure the authenticity of a message signature without sharing a secret code between the 2 parties.
The method involves 2 connected keys: one private, and one public. The private key is a strictly
personal one that is not to be shared. The public key is shared with the entire network (the 'address' of
a party to which transactions can be sent is determined using the party's public key).

Encrypted text Network Encrypted text

The sender encrypts

using a private key

The receiver (or node)

decrypts using
Sender's Sender's public the sender's public key
private key key

Visible text Visible text

General principle of signature

Comparison authentication Source: inspired
by http://www.linux-france.org.

In the case of blockchain, this mechanism is used to authenticate a signature.

To initiate a transaction between Alice and Bob, Alice must use her private key to "digitally sign" her
message (e.g. "I hereby send 200 monetary units to Bob"):

> To her open message she adds a signature that matches the "digital fingerprint" of
the open message. This print is then encrypted using a private key.

Nodes in the network are sure the message comes from Alice if they are able to decrypt its
signature using the public key.

> The transaction is authenticated if the parties are able to decrypt the
digital signature of Alice using her public key and establish that this
decrypted signature and the fingerprint of the open message are identical.

An AgroTIC Business Chair Study - October 2017 7

2 I How does it work?

To understand how this actually works, take the example of the first
blockchain put into use at world level: Bitcoin.

Sender/party A uses his private key to

A initiate a transaction with receiver B,
identified with a public key.

1
Created in 2009, Bitcoin is a digital
currency, or "cryptocurrency"
for peer-to-peer payments (for
purchases of goods and services,
but also now exchanged for 'real'
This transaction is sent to the currencies). Bitcoin operates
2 nodes in the network. according to an open protocol
(open source code) which allows
users to issue Bitcoins and manage
transactions in a collective and
automatic manner thanks to th e
interoperability of the software and
Nodes, called "miners" in the case of services involved. Bitcoin is both a
Bitcoin, encode and verify the transaction. payment intermediary and a store
It is important to check whether of value limited to 21 million units
concerned parties in the transaction have ('Bitcoin' is also the name of the
authorized it, and whether the transaction
3 is feasible. For example, does the receiver
have sufficient funds?
unit). The Bitcoin blockchain
tracks every transaction carried
out since its creation. Like all
cryptocurrency, Bitcoin has no
real underlying value: it is only
If approved, the transaction is added to a block of valuable on the internet and relies
other pending transactions. Each miner prepares its on a speculative mechanism.
own block from a list of pending transactions (blocks
are pre-defined in size and the number of transactions
in a block varies). In order to be added to the chain,
4 the block itself must be verified and approved by
consensus: the miners must provide proof that the
block has, in fact, been checked (see box). This solves
syncing and logging problems by establishing priority
rules.

(*) Note: Sometimes, due to the

5 When a block is approved, it is time
stamped and each node adds it to its own
time it takes to synchronize nodes,
two nodes transmit their version
copy of the chain. (*)
of the block simultaneously. In this
case, the chain can temporarily have
two different branches. Each node
continues to operate according to
the block it received first, but keeps
the other pending. W hen the next
The transaction can reach its receiver and block is added, the longest branch
6 B
is visible to the entire network. For Bitcoin,
the operation takes around ten minutes, the
becomes the valid one and the other
is discarded.
time needed for the proof mechanism.

8
PROOF OF WORK AND OTHER CONSENSUS
MECHANISMS
In a decentralized system without a trusted smoothly. This is where the term "mining"
third party, and where, in theory, there is originated, in reference to gold miners who
no trust between individuals, consensus earned money from their work…
mechanisms are essential. To work
The Proof of Work mechanism was the
together, network users must abide by
first to be used in Blockchains, but other
universally accepted rules, allowing as many
consensus protocols are also now
users as possible to concur, and ensuring
common). One option frequently
that those who take part in decisions are
mentioned is "Proof-of-State", a protocol
legitimate (and are not malicious).
that requires far less computing power and
In the Bitcoin network, blocks are approved energy, in which miners (called "minters")
using a form of consensus called Proof-of- earn the right to approve, or sign, blocks
Work: evidence that effort has been made by betting cryptocurrency units. The more
to verify a transaction. This mechanism they have, the greater their chance of being
requires such a level of computing power to selected by the algorithms.
approve each block that it deters malicious
attacks and makes it nearly impossible to It should be noted, however, that not all
re-write the chronology of the chain. Blockchains require these relatively
complex mechanisms. We will see that
Since each miner prepares a block, it is certain chains are private, or managed by
necessary to select which one will be a limited number of parties. Where trust
added to the chain. The following rule is less of an issue, approval mechanisms
applies: the miner that solves a complex are far more simple and use little energy.
math problem first is allowed to add his Some- times a block can be approved
block. For example, parties could be simply by X number of N nodes to be
asked to add (or concatenate) a random considered valid (e.g. a simple voting
value to the preceding header to obtain a system). Or certain nodes can be
hash below a certain threshold (the hash deemed contractually responsible for
must begin with a series of 0s for this to approving blocks.
work, which requires several attempts).
Problems get increasingly complex as the
blockchain evolves, but the solution is
always easy to check. As a result, the block
is approved if more than 50% of the nodes
approve the result. Given the high level of
computing power required, this is handled
by specialists. In exchange for this work,
miners receive tokens (worth a fraction of
the cryptocurrency), which act as an
incentive to keep the network running

9
 As seen above, blockchains have the following
characteristics:

LOGGING
Transactions are added chronologically: they are
time stamped and inter-linked.

UNALTERABILITY OF RECORDED DATA

The record is replicated multiple times and the
slightest modification changes the entire chain.

DISINTERMEDIATION AND
DECENTRALISATION
The peer-to-peer nature of the network makes a
central server unnecessary.

SECURITY
The distributed consensus nature of the system
makes attacks more difficult. A digital signature
guarantees the origin of the transactions.

TRANSPARENCY
Nodes contain the entire chain and can access
transactions.

Blockchains are first and foremost a technology which

"ensures the sincerity and validity of any kind of transaction"
(10): a "trust machine", in the words of The Economist (31
Oct/6 Nov 2015).

Summary:
• Blockchains make it possible to keep a secure and shared ledger of transactions. They
are based on two major technologies: cryptography and peer-to-peer architecture, which
ensure that data is highly secured and tamper-proof.
• They operate on the principle of collective governance based on a consensus mechanism,
and have the potential to remove the need for intermediaries and a central authority.
• Because of the mechanisms involved, based on sharing and data transparency,
Blockchains can be seen as 'trust machines'.

10
3 I From blockchain to Blockchains
(Distributed ledger technology - DLT)

As seen above, the blockchain is a shared and secure database.

As such, it records (ledger) and exchanges data (such as payments). Other protocols have rapidly
appeared to meet new needs. These protocols have added new functions, as well as new ways to view
governance.

Where once there was "the blockchain", now there are many. Original blockchain 'purists' refer to
the technology in general as: "Distributed Ledger Technologies" (DLT).

SMART CONTRACTS:
A MAJOR FUNCTIONAL SHIFT
Smart contracts are stand-alone programs which automatically carry out the terms
and conditions of a contract according to predetermined parameters, without the
need for human intervention once implemented (Blockchain France, 2015). The
contract's terms and modalities are embedded in the blockchain and therefore
cannot be altered.
Once again, this is not a new concept. The term "smart contract" was used for the
first time in 1993 by computer scientist Nick Szabo. The development of the Ethereum
network took the technology to another level by associating it with a cryptocurrency
(Ether, in the case of Ethereum), allowing a completely automatic and secure exchange of assets.
Smart contracts pave the way for new developments: in combination with connected objects, for
example, they can establish a secure link between virtual and physical spheres. A sensor can collect
data which, when sent, triggers a series of automatic transactions stipulated in a smart contract (e.g. a
payment triggered when Geo-location provides proof that a parcel has reached its destination).

PRIVATE BLOCKCHAINS:
A SHIFT IN GOVERNANCE

As a completely open and transparent technology (e.g. Bitcoin), Blockchains are very original.
However, the concept quickly attracted criticism from those less eager to share or make decisions
together. Less open Blockchains were quick to appear.
Three main kinds of Blockchains exist.

> Public, or "permissionless" Blockchains:

Anyone can approve transactions and take part in the consensus process.
Anyone can send transactions for approval and integration in the blockchain if the transactions are
valid.
Anyone can consult transactions.
This type of blockchain is truly decentralized, which allows for lower infrastructure costs for any
given party since these are shared across the entire network (no servers to maintain, for example). A
cryptocurrency is closely linked, as a financial incentive, to ensure the network is well maintained. This
type of blockchain is not easy to change because all parties must agree.
Examples: Bitcoin, Ethereum, Litecoin, etc.

> Consortium Blockchains

The consensus process is handled by pre-selected nodes (similarly to a consortium of banking
establishments that agrees to a set of common rules). Transactions are either open to all, restricted to
network participants, or only partially accessible.
These Blockchains are considered to be partially decentralized.

11
 > Private, or "permissioned" Blockchains
These chains are owned by a given organization which has complete control over permission to write
and consult. In practice, they are regulated, subverting the original idea behind Bitcoin. Purists refuse
to call these types of chains Blockchains. This type of chain does not rely on a cryptocurrency or
on proof-of-work, or proof-of-stake mechanisms. They are still Blockchains in that they are distributed
and secured by encrypted authentication.

There are pros and cons to each type of chain, and some are better suited to certain contexts than
others. For example, public Blockchains work well for consumer-to-consumer (C2C) applications,
while private chains are better for business-to-business (B2B) uses.
Private Blockchains are still often a means for companies to test the technology with less impact, but
eventually it is likely that the different kinds of Blockchains will co-exist and operate together. This is
already the case: side chains can be used to create linkages between different Blockchains.

THE BLOCKCHAIN ECOSYSTEM:

A SHIFT IN SERVICE DEVELOPMENT

> A blockchain is built in layers, exactly like the internet:

The "infrastructure" layer is the distributed "database", the actual chain of blocks, and the network in
which it is replicated.
This layer of infrastructure is topped by a "protocol" level: a set of rules followed by the blockchain,
such as verification and transaction approval rules…
The "technological" layer is the intermediate layer offering services used to process blockchain data
and make it available to applications.
The application layer is composed of applications which interact with users. At this level, the blockchain
is transparent to the user. This is the "blockchain-as-a-service" level (Baas).

Blockchain
ecosystem
(Source: taken from a CATIE-or-
ganised "DA'telier" presentation
by Charles Garnier, 23 May 2017)

> Coloured
coins & > loT
Open assets > Hardware &
H Storage
> Logistics
> Smart Contract
> Entreprise Platforms > Energy
> Oracles
> Culture
> Server-less apps
> Prediction
States Associations
> Crowdfunding GI > Payment
> Notary services > Data storage
> E-identity
Individuals Private
organisation

Public N-A Public

organisation organisation

SE

12
Depending on their needs, a company has several options for implementing blockchain technology
including the use of a development platform.

APPROACH HOW IT IS DONE EXAMPLE

Computer services We do it for you Major digital services firms

You work directly with blockchain tools

Blockchain first Bitcoin, Ethereum
and services

BlockApps, Blockstream, Eris, EthCore,

Development platforms Tools for IT professionals
Hyperledger, Tendermint

Axoni, Chain, Cleamatics, DAH,

Vertical solutions For industry
itBit, R3

API and specific sub-layers "Do-it-yourself" building blocks Blockstack, Factom, open Assets, Tierion

In the long-term, the ecosystem will likely be built around service providers that develop the technological
layer on one hand, and companies that develop sector-specific applications on the other.

Service providers, including majors like IBM and Microsoft, will need to successfully impose their
service environments to allow companies to create, launch, operate and monitor blockchain-based
applications. To this end, IBM is developing services based on Linux Foundation's Hyper-Ledger.
Microsoft is focusing on its Azure platform, and Orange on Chain.

Companies developing sector-specific applications need to be the one to offer the "killer app", the
one which will make the massive adoption of blockchain technology possible.

Summary:
• There are not one, but many types of Blockchains, each with different characteristics
andfunctions.

• Smart contracts and self-executing computer code, add value to the simple principle of
a distributed database: they offer the possibility of connecting the physical and the virtual.

• Private Blockchains exist now. They move away from the original philosophy of a
system managed entirely by its users.

• Blockchains already enrich a veritable ecosystem of participants and solutions.

13
4 I Why do blockchains generate so much interest?

BLOCKCHAINS ARE OF
PARTICULAR INTEREST
BECAUSE THEY ARE A
TECHNOLOGY DESCRIBED AS
BEING DISRUPTIVE.

Blockchains – public Blockchains in particular – have enormous potential to transform

and imply paradigm shifts:

> They reinvent trust. By eliminating the need for a central authority, And because they are based on
transparency and distributed consensus, they change the way trust is granted (see "educational talk"
by Claire Balva at TEDxLyon on this topic (13)).
Until now, the common modus operandi has been to delegate trust to a third party: a banker, a
notary, a certification body, or a state. However, such third parties are fallible, and may be subject to
security breaches. They can also arbitrarily decide to change the rules. Blockchains "re-invent trust"
by distributing it: transactions are approved and carried out not only by one person or entity, but by a
whole community. Instead of trusting an authority, trust is placed in a technology (and mathematics!).

> This allows risk to be pooled: once again, risk is not concentrated on an intermediary but shared
by all.

> Blockchains imply sharing tools, transparency, decentralization, and establishing functions specific
to a collaborative or sharing economy. Cryptocurrencies, which exist independently of states and
banks, are one form of this, but not the only one. Because they are based on a peer-to-peer network,
blockchains open the door even further to "uberisation", the phenomenon of putting professionals and
clients in direct contact. Blockchain makes it possible to sidestep this type of service platform. Parties
trade units of value of any kind securely: this is called "tokenisation", from the term "token", where a
token can be an asset, a production unit, or something immaterial like time, a voting right, a reputation,
etc.(14)

14
>This new technology re-invents the power balance between parties and how they interact… In
private or consortium-based blockchains, power sharing between parties that propose the technology
and partners who adopt it will probably have to be based on a subtle balance. "A joint form of
coordination is needed, based on power without abuse and trust without blindness. This type of
system is difficult to implement". (15) In public blockchains, community members have enormous
power, but also responsibilities. "If there is no central authority capable of enforcing the law, the
blockchain community has a moral obligation to intervene to ensure that the law (or code, in this case)
is respected, as well as uphold public order and ethics. This is exactly what is implied by 'distributed
governance'". (Primavera de Filippi, quoted by Blockchain France, 2016) (16)

Evidently, this raises many questions for researchers from a range of disciplines: technological issues,
of course, as well as legal ones (regarding responsibility and regulation), political ones (the role of
states), societal and ecological issues, etc.

Blockchains rapidly caught the attention of the financial sector due to their cryptocurrency
component and their ability to transfer assets, and they are likely to be of interest to all
business sectors.
After this overview of the technology, let's now look at examples of how it is used and
specifically at applications in the agricultural world.

Summary:
• Blockchain technology is 'disruptive' due to the paradigm shifts it involves in terms of
trust, user interaction, and power.

• It raises technological, economic, social, political, legal, and ecological questions to do

with research.

15
 PART II:
Exploring the potential

1 I From potential to use

As seen above, the main characteristics of a blockchain are:

LOGGING
UNALTERABILITY OF RECORDED DATA
DISINTERMEDIATION AND DECENTRALISATION
SECURITY
TRANSPARENCY

A blockchain can represent added value when the goal is to:

> protect the reliability of data, secure the system, or ensure its transparency,
> gain time and money by decentralizing infrastructure*, as well as by automating and simplifying
procedures.

* Combined with a cryptocurrency, a blockchain functions on a stand-alone basis: as with Bitcoins, costs are
shared across nodes in the network and participants are remunerated by internally created value. This can
potentially lower infrastructure costs.

Currently, uses can be classified into three main categories (6) (17):

Record keeping
Storing data and information for which proof of existence, logging, ownership,
origin, etc. need to be guaranteed.

Digital transactions
A B Transfer of units of value: cryptocurrencies, real estate transactions, co-
financing, purchases/sales, votes, etc.

Smart contracts
Development and storage of smart contracts which automatically execute
terms and conditions that are permanently written into the blockchain.

However, this conception of the technology is probably simplistic and it would be unfortunate to limit its
potential...

16
2 I Examples from all sectors

The financial sector took an early interest in the potential of blockchains and is without a doubt the
one which has invested the most in proofs of concept (progress rarely advances past this stage)
for asset management, international trade financing, and private financing. However, the financial
sector is by no means alone: according to a study by the French employers' association (MEDEF), in
May 2017, 66% of decision-makers at 302 French companies of all sizes and in all business sectors
were interested in blockchains(3). In 2016, international investments in this technology reached $694
million (Source: baromètre blockchain, TNP & Largillière Finance). Below is a brief overview of how
blockchain is used, to show the variety of fields and applications involved...

COPYRIGHT /
CERTIFICATION OF INTELLECTUAL
DIPLOMAS PROPERTY
Several applications use blockchain to protect
Two engineering schools, Léonard de Vinci the authorship of a work and/or pay the
(Paris) and the Ecole Supérieure des Sciences authors directly (Monegraph, Verisart, Muse
Economiques et Sociales (ESSEC) created a Blockchain). In May 2017, music streaming
partnership with a company called Paymium to platform Spotify, regularly found guilty of
offer "diploma.report", a service that certifies poorly paying rights holders, announced it had
the degrees awarded by the two schools. The purchased Mediachain, a startup specialised in
school makes a digital copy of the degree, a the development of digital on-line protection
digital fingerprint of the degree is made, and solutions. Mediachain uses the Ethereum
a transaction is recorded in the blockchain to blockchain to authenticate authors of works.
attest that the degree was indeed issued by
the school. That way, a company can receive
the digital version of the degree, check that it
has not been modified by comparing the hash,
and explore the blockchain to verify that it
was indeed the school that issued the degree.
A COOPERATIVE
FOR APPLICATION
DEVELOPMENT
The Digiculteurs (or 'digital
ENERGY PRODUCTION growers') are a group of
companies in the digital
Solar Coin is a cryptocurrency that allows sector launched by Crédit Agricole. Crédit
energy self-producers to be paid in SolarCoins Agricole releases its data – including
based on the electricity generated by their banking information, which is, of course
solar power installation. For example, 1 sensitive – to the companies in this group
SolarCoin rewards the production of 1 MWh to help spur the development of innovative
and can be converted into most currencies. In applications. Digital growers are paid via an
France, ekWateur, a green energy distributor, original system; remuneration depends on
accepts SolarCoin in exchange for energy. the monthly rate of usage of applications.
Neighbourhood-level experiments are under This provides long-term income to "digi-
way to develop direct solar energy trade growers" and encourages them to continually
between neighbours: examples include the improve applications. Because small sums
TransActiveGrid project in Brooklyn or the are involved, the system relies on payment in
Bouygues Immobilier project with Bitcoins, allowing Crédit Agricole to improve
Microsoft, Energisme and Stratum, its expertise in this technology. (18)
in the Confluences district of Lyon,
France.

17
 CARPOOLING
LaZooz offers a carpooling ride service based
on a self-managed platform. Drivers are paid in
Zooz, a cryptocurrency modelled on Bitcoin. THE INTERNET OF OBJECTS
Slock-it: Their slogan: "Rent, sell or share
anything". Slock-it connects physical objects
with the Ethereum blockchain to provide
interaction with regard to smart contracts. The
company cites the example of an apartment
ELECTRONIC VOTING rental: the front door lock can be connected
to the blockchain and a smart contract can
FollowMyVote, an American start-up, offers open it if the payment conditions of the
a vote recording service, using a ledger and contract are fulfilled. Slock-it highlights the
verification by nodes that a given voter has added value of the blockchain by comparing
the right to vote, and hasn't voted more than it to other systems: it can't break down or
once. fall under the control of a third party. Cost
reduction is another argument used (19).
Filament is working on a long-distance
wireless network of connected objects
based on the blockchain concept. The goal
is to develop a protocol (Blocklet) thanks to
which connected objects can interact. The
blockchain simply verifies inputs and outputs.

STORAGE CLOUD Iota: this application, which promises a

solution to link connected objects, is in fact
Filecoin is a Dropbox style data storage a '2.0' extension of the blockchain principle
solution which uses data centres. in that transaction blocks are not in a chain,
File storage is decentralised: data is encrypted but a tree. The system is not driven by a
and distributed across the nodes of the monetary incentive, resulting in lower costs.
network. Miners earn Filecoins by providing Nodes are not paid in exchange for approving
disk space. Clients can personalise data transactions: instead, they approve two to be
replication settings according to the security allowed to send one.
level, access speed, and desired cost.

18
3 I Examples in agriculture
Below is a (non-exhaustive) overview of blockchain uses in
agriculture as seen in the press and scientific publications. These
examples illustrate current opportunities and fields in which
the blockchain can be a technology of interest and a solution
to certain challenges. This will also allow us to grasp related FURTHER
questions. It is important to note, however, that these examples are READING:
not exempt from a "buzz effect"; almost all of them are pilot projects "Agriculture, agroalimentaire
or simply proofs-of-concept. et blockchain", a study by
Blockchain Partner - (20)

EXAMPLE 1: TRACEABILITY AND TRANSPARENCY IN THE

SUPPLY CHAIN

THE CONTEXT:
Food scandals and health crises which have made the headlines since the 1980s, along
with an increase in certain health problems – those linked to obesity, for example – have
weakened consumer trust in producers and the agribusiness sector. Consumers complain of
a lack of transparency with regard to food products, their origin, their ingredients, and, increasingly
the social and environmental conditions in which they are produced (21). Companies therefore need
to reassure them.
Similarly, producers and industry stakeholders must adhere to strict standards for which they are
obliged to provide field-to-plate traceability. These are complex and expensive processes. Despite this,
it sometimes takes weeks to find the source of a problem by comparing dissimilar (and sometimes
paper-based) information systems: up to three months in the case of Fipronil-contaminated eggs last
summer (22). The challenge in such instances lies in achieving effective traceability.

BLOCKCHAIN TECHNOLOGY CAN HELP TO:

• find the source of a problem: the blockchain can record every step in an item's production
chain. Malfunctions can be quickly identified. Data is tamper-proof, ensuring that no changes are
made to records (thus clearing a company of responsibility).
• report a malfunction: incorporating connected objects and smart contracts makes it possible
to report problems in real time (when a temperature is not properly maintained, for example).
• restore trust via transparency: traceability via blockchains can provide proof to the end
consumer of origin, adherence to specifications, or manufacturing conditions (in regard to health,
ethics or environmental concerns). The decentralised and distributed nature of the technology
makes information accessible to every link in the chain, which can work in synergy.
• facilitate audits and inspections: the use of a ledger and/or smart contracts which independently
verify that criteria are met reduces wait times and audit/inspection processing costs, and can be
applied to a wider range of products. The blockchain is therefore compatible with certification
processes.
• reduce food waste: by speeding up administrative procedures and identifying the source of
malfunctions more accurately, it can prevent food waste caused by entire batches spoiling or
being destroyed.

19
EXAMPLES:
> IBM SOLUTIONS FOR TRACEABILITY events from birth to sale
WITH MAJOR FOOD PROCESSING (approximately 90 days).
GROUPS: The group chose
The news received extensive media coverage: to develop a private
food giants such as Dole, Driscoll's, Golden blockchain based on
State Foods, Kroger, McCormick and Company, Ethereum technology
McLane Company, Nestlé, Tyson Foods, Unilever, (though other
and Walmart have joined forces with IBM to approaches are "under observation"), in which
explore the potential of blockchains in new the network is composed of those parties
traceability solutions. The consortium follows included on the production and sales chain: chick
in the wake of two proofs of concept deemed consignment teams, breeders, grain suppliers,
conclusive, carried out by Walmart and IBM and slaughterhouses, etc. Nodes in the network are
based on Hyperledger technology: one for the hosted by Carrefour in a private cloud or by
traceability of pork in China (23) and the other for partners with the necessary IT resources.
mangoes in Mexico (24).
Of course this system relies on each party
For the food industry, the goal is to store and track effectively contributing. Chronological order
forgery-proof information about where animals is less important than ensuring processes are
were born, raised, and slaughtered; lot number,
recorded at every stage. If needed, mechanisms
factory data, expiry dates, storage temperatures, such as smart contracts can report shortages/
transportation and delivery information – with the
missing information.
ultimate goal of total traceability. The blockchain
as a service offered by IBM, which makes use of A private network was chosen thanks to the
Linux Foundation HyperLedger innovations (25) simplicity in implementing the economic model
and allows each party on the network to add data and governance structure (initial contribution
regarding its own activity (its link in the supply from each party according to a number of Ethers,
chain), and access the data of other members predetermined by the consortium) and a desire
without giving any single party exclusivity. The to be able to control the dissemination (or not) of
roles and access of each party are monitored. certain information, particularly expertise or data
that is useful to producers (tracking the weight
of chickens, for example). Some information
> CARREFOUR AND ITS ANIMAL QUALITY recorded on the chain can be shared with the
LINE consumer via QR codes on products. Upward
In France, Carrefour also announced in February communication towards farmers is also being
2017 that it had implemented blockchain explored to keep them better informed on the
technology for the traceability of its animal repercussions of their production.
products (26). The initiative is part of its Carrefour The experimental phase has been completed,
Quality Lines (in this case its IGP, Label Rouge and operational implementation could take place
certified chickens, fed with French GM-free grain by the end of this year. For Emmanuel Delerm, a
and not treated with antibiotics). The chain tracks project director at Carrefour, the main advantage
of this technology is the pooling of information

” The blockchain alone cannot

within a circle of stakeholders committed to
common quality goals. He believes the approach
ensure traceability. We have is essentially worthwhile for high added-value
analysed the traceability process products, or where there is a need to demonstrate
in depth to pinpoint what needs to good practices, such as tuna fishing, another
be recorded in a blockchain, and sector explored by Carrefour.

when”. He highlighted two aspects which require caution.

Care must be taken to:
Emmanuel Delerm,
Project Director, Carrefour // Ensure that the 'recorded information meets

20
 quality standards (since an entry is not modifiable, The wine industry is also concerned: Dartess, a
but enriched by another entry)'; to this end, he subsidiaryofTessongroup,specialisedinwinelogis-
predicts that trusted authorities will maintain an tics, also announced the development of a POC.
important role, even if the technology will change The goal is to be able to: "trace the background of
this role. a bottle of wine, so as to reduce fraud and theft,
as well as simplify trade and customs processing"
// Support change by 'explaining the advantages,
(28). Again, the link between the physical and dig-
the rights and responsibilities of a blockchain (i.e.
ital is established using "smart tags". Similar initia-
it is open, forgery-proof, publishable, involves tives have been launched in other countries, like
commitment etc.). Italy. (29)

>CERTIFICATION:
> TRACEABILITY FOR CONSUMERS VIA CONNECTING FOOD AND OTHERS
TAGS ON PRODUCTS
Connecting Food is a French start-up witha slightly
A firm called Provenance has developed a service different approach to transparency: its service
platform to inform consumers of the origin of a focuses on the notion of "real-time certification".
As things now stand, brands which rely on
suppliers can only verify whether specifications
” Using a blockchain only makes are followed by audits and occasional monitoring.
sense if everyone works together. Its "Brands and distributors who outsource
distributed and decentralised nature is production audit their producers once or twice
essential”. a year. This means only some 10% products
sold on the market are verified and certified".
product and whether it was made in ethically/ (Stefano Volpi, co-founder of Connecting Food)
environmentally responsible conditions. One of (30). One result is that the brand image of the final
the blockchain-based proofs-of-concept focused product is impacted by any problems. The start-up
on monitoring tuna fishing in Indonesia, using offers a service to compare client specifications
traditional methods rather than nets. The entire with what suppliers actually provide at every
procedure is well-described on Provenance's stage of production and in real time, so as to
website (www.provenance.org) (27). Fishermen prevent an intermediary product that is unsuitable
send text messages detailing every catch; this from being finished. The solution is based on a
information builds Provenance's Ethereum combination of technology implemented with
support from IBM and CEA Tech LIST: blockchain,
blockchain. Every fish is given a special serial
but also connected objects, cloud, cryptography
number – a digital "tag" that it keeps as it moves
and artificial intelligence. The economic model
along the supply chain. This example is interesting
is based on a service approach ("Software-as-
because it highlights the difficulty, at the beginning
a-Service" or SaaS) with a subscription paid by
of the processing chain, of interfacing blockchain
the client whose specifications need to be
with enterprise research planning (ERP) integrated
followed (31). The company also supports
management tools in factories. In this case, only
the work of farmers by offering financial
ERPs which are compatible with interoperability
compensation for their participation in
standards (GS1 standards) have been able to
the Connecting Food scheme.
continue recording processing stages in the
blockchain.
At the end of the chain, an electronic NFC tag Another example with regard to
placed on the product provides the user with certification is a pilot project
background information on the product via developed by Dutch
smartphone. The tag of course cannot be copied, researchers and
forged or moved, in order for the system to work. presented at the EFITA
This is a challenge in making sure the solution is Conference held at
reliable, even though it is based on a blockchain... Montpellier SupAgro
on 3–5 July 2017. The

21
demonstrator uses Hyperledger technology
in a private blockchain that manages, in real
time, the creation, monitoring, and approval of
certificates of conformity with specifications for
the production of table grapes. This project has
also appeared on the Agrotic blog: click here.
Here again, the decentralisation of information –
i.e. the 'non-monopolisation' of information – and
transparency have been identified as the biggest
advantages in the experiment, but with scalability
issues as technical limitations.

Other studies are under way, including by key

players in today's certification market –
trusted third parties – such as Bureau
Véritas which launched a POC
on the certification of a logistics
chain for tuna, based on "Proof-of-
Process", a technology developed
by Stratumn, a start-up combining
blockchain and cryptography to
secure communication between companies.
(32) (33)

Summary:
In terms of traceability, reliable data sharing is viewed as a real 'plus' for working
effectively and in confidence with partners. But:
• Blockchains only work if all parties update it;

• Information which enters and leaves the chain is not secured by the blockchain;

• The notion of a trusted third party remains in cases where the validity of information from
outside the system or specific practices needs to be certified;

• Interoperability can be an issue when a blockchain is incorporated into existing information

systems.

22
EXAMPLE 2: BLOCKCHAIN AND AGRICULTURAL
INSURANCE (AGAINST NATURAL HAZARDS)
THE CONTEXT:
FURTHER
> In general, farmers are under-insured against natural hazards. READING:
"Blockchain et assurances"
Blockchain France website
> In France, only 25% of commercialised crops (major crops and wine (34)
production) are insured against natural hazards. Farmers "La blockchain dans le
view available coverage as poorly adapted to their needs secteur de l'assurance" on
and only purchase insurance if they think they will recover at the Wolters Kluwer
least the premium they paid (36). In the case of major incidents, France website
- Actualités du
governments must step in to cover losses as a result. It is in droit (35)
their interest, and that of insurance companies, to ensure that risk
coverage is better planned.

> In developing countries, 357 million small-scale farmers with less than a
hectare of land are not insured, and yet nearly 80% of all food consumed [...] is produced by
these farmers. Production incidents of any kind can lead to food shortages. (37) The spread of risk
areas across the globe, or on the contrary, the concentration of risk on a single type of crop in an
area subject to the same hazards, is a source of administrative and operational costs for insurance
companies. Because insurance is expensive, few farmers can afford it or are even well-informed.

BLOCKCHAIN TECHNOLOGY CAN HELP TO:

• Lower costs: a decentralised and self-operating system can result in lower management and
structural costs for insurance companies and potentially lower premiums for clients, particularly
in countries where agricultural insurance is uncommon.
• Anticipate and better assess risk: shared access to reliable information can improve knowledge
about situations and be used to develop more suitable and even more personalised insurance
options (the "know your customer" principle).
• Speed up processes: automatic feedback in real time from connected objects or by searching
a shared database can trigger stand-alone programs (smart contracts) managed by blockchain
technology. An insurance policy can be paid out, for example, in the event of damage, without
the need for a statement or review by an expert. The disbursement process can be sped up. "Bulk"
processing can be made easier.
• Develop new types of insurance: collective ones, for example, by mobilising the potential of
a peer-to-peer network (person-to-person insurance schemes, or involving common interest
groups).

23
EXAMPLES:
Examples of how these possibilities are applied and finance the re-insurance policy. The goal
exist in other sectors (AXA, for example, launched is to re-shape insurance by making customers
"Fizzy", a travel insurance product that pays out responsible and eliminating the feeling of paying
automatically if a flight is delayed or cancelled without ever getting anything in return.
(38)), but are still rare in agriculture. The start-up Wekeep promised "a tool to store
money digitally in escrow accounts as a smart
contract in the blockchain", based on Bitcoin and
> INDEX-BASED INSURANCE Ethereum, but which no longer appears to be ac-
A fictitious case proposed in the context of tive (41). However, the idea remains: a farmers'
a challenge (2017 Swiss Re Hackathon: (39)) union or other association, for example, could
although theoretical, helps demonstrate the programme a pay-out triggered automatically ac-
role of blockchain in index-based insurance (i.e. cording to parameters such as weather data. It is
according to indexes or objective indicators such similar to the concept of micro-insurance, but in
as average temperatures, rainfall, etc.) and micro- this case is peer-to-peer.
insurance.
The Hackathon example was developed for
Kenyan farmers and describes a joint initiative,
within a blockchain, of small-scale producers,
aid organisations (cooperatives, micro-credit and
technical assistance organisations), insurance
companies, satellite weather index providers,
and re-insurance companies (to whom principle
insurers transfer a percentage of the risk). The
insurance service is made available to farmers
on their mobile phones, as most own one. The
example is based on a system of indexed micro-
insurance policies which take into account
specific parameters for a given geographical area, NOTE:
a period in time, and a specific crop. Conditions
and effects are noted in a smart contract. When the Though few examples are specific to
threshold of a parameter is reached (for example the agriculture sector, the insurance
sector is actively exploring the potential
a sum of degrees, or a sum of millimetres of rain
of the blockchain. As in the financial
as recorded by satellite weather data), insured
sector, however, specific legal questions
farmers are automatically paid. All policy holders must be considered. The Norton Rose
in a given geographical zone receive payments Fulbright and R3 study examined:
based on the same contract, without the need
• "the need to create framework
for on-site inspection.
contracts to define relationships between
participants in a blockchain;
> PEER-TO-PEER INSURANCE
• the need for new systems to conform
The idea is not new, and other platforms without with applicable regulations,
blockchain already exist, like Otherwise in
• the designation of the legally
France and Friendsurance in Germany (40):
responsible party in a blockchain;
1 insured parties form a community. 2 They
• risks of discrimination related to
declare assets and pay a premium to insure
the storage and sharing of insurance
them. Most of the money is placed in an escrow
customers' information;
account and the rest is invested in a re-insurance
• the collection and management of
policy; 3 in the event of a claim, the customer
personal data, in particular sensitive data"
is paid with the money from the escrow account
and then by the re-insurance company when
the escrow account is empty 4 the following
year. Members of the community only pay the
amount required to top up the escrow account

24
 EXAMPLE 3: MANAGING CONSENT FOR THE USE OF FARM DATA (SMART FARMS).

THE CONTEXT
Farmers can choose to run their farms with the help of decision-making tools (DMT). Based on
agricultural models, these tools incorporate an increasing amount of digital technology, for the
collection, processing and use of data. The use of sensors and other connected objects on farms
is growing. This increases the amount of data produced and creates agricultural "Big Data". "Over 12
million connected objects existed in the agricultural and environmental sectors in 2014. In 8 years,
there will be nearly 100 million". (42). For increased efficiency, tools and systems must communicate
and interoperate. The French government's Agriculture-Innovation 2025 mission recommends that an
agricultural data portal be created to facilitate access to heterogeneous data from multiple sources.
This raises real questions regarding the ownership and use of this data: farmers worry they will not
control the use of their data, and digital tool and service suppliers are having a hard time determining
the legality of making available and re-using the data they store. The issue of trust is central: what
becomes of my data, who uses it, and what for? Can it be used against me (by competitors, for
example)? Can it be sold? Can it be modified?

BLOCKCHAIN TECHNOLOGY CAN HELP:

• by providing a solution that builds confidence regarding the protection of entrusted data (in this
case, consent to use data), the protection of anonymity, and confidentiality of data
• by providing a decentralised and secure solution that prevents intermediaries such as Google or
Facebook from holding data for their own use

EXAMPLES:
This type of use will be explored as part of This project aims to develop new services for
the CASDAR "Multipass" Project, launched in farmers in a confidence chain that manages
November 2017 and bringing together 7 partners: consent to access farm data. The project will
ARVALIS - Institut du végétal (project oversight), first identify farmers' needs in terms of a consent
ACTA, IDELE, ORANGE (technological partner), management tool (factors in establishing trust,
SMAG, FIEA (agricultural data exchange) and barriers to remove in data sharing, and responses
IRSTEA. to legal obligations). These needs will be
reformulated as functional specifications to adapt
existing consent management tools. Concrete
" The goal is to give producers a examples in major crops and livestock farming
"data passport" solution to protect will then be studied. This will provide insight into
shared data that is collected on their operability between these tools and existing or
future systems and the conditions needed for
farms. ".
sustainable governance.
"Multipass" Project documentation The blockchain will be only one of the technical
avenues explored, and compared with a centralised
solution which relies on a trusted authority. For

25
 this part, "development will be handled by Orange their regular doctor, that professional can access
teams and primarily aim to transpose an Orange their file. The patient can withdraw their consent
prototype to the context of agriculture [...]. This when they return: this case is described by Sajida
prototype, designed by innovation teams at Zouarhi, a doctorate student at Orange Labs:
Orange, was aimed at managing consent for (43).
accessing patients' medical data". (42) "The technical method used to carry out the project
Concretely, the medical prototype in question is based on the Hyperledger open source solution
illustrates the possibility for a patient to decide and provides a consortium-type blockchain […]
with whom and why he or she wishes to share on which only pre-authorised parties (users or
their medical information. The patient fills out a those who approve transactions) can intervene.
form stipulating the type of data they are willing Such a solution does not require the use of a
to share, with whom (what category of medical resource-hungry consensus mechanism (i.e.
professional), the duration of the consent and proof-of-work), but rather a majority consensus,
the type of authorisation given (reading access which also delivers good performance in terms
or writing). After, the data is included in the of the number of approved transactions. Arvalis,
blockchain. That way, one day if he or she is away FIEA and SMAG will each host a node in the
from home and needs to see someone other than blockchain network with support from the teams
at Orange. Initially, nodes will be controlled by
project partners, but are expected to be managed
" Blockchain is not an end in itself. It is by the consortium in the long term". (42)
seen as a way to create confidence. "
Bruno Lauga, Arvalis, Multipass Project Manager

FURTHER
READING:

"How blockchain will finally

convert you: Control over
your own data" (44)

26
EXAMPLE 4:
FOODSTUFF SALES AND PAYMENTS TO PRODUCERS
THE CONTEXT:
> In the agricultural sector, significant delays often occur between the sale of foodstuffs and
the moment a producer is paid. Extended payment processing times can create situations
where a producer is dependent on a client. A power imbalance can therefore result between
individual producers and influential client companies.
> In developing countries, cooperatives help farmers retain a bigger percentage of the value of their
crops, but rely on printed documents or oral promises to do so. Serious problems and corruption can
result from a lack of transparency and restricted access to price data. (45)
> In developing countries, crops are sometimes sold too soon out of fear that they will not sell later,
leading to a significant drop in the quality of the food and, possibly, waste. (46)

BLOCKCHAIN TECHNOLOGY CAN HELP:

• By building trust between buyers and sellers through the use of an open register which
records who sells what, who buys what, and at what price.
• By providing access to accurate information, even to very small producers, so as to better
ascertain the value of foodstuffs on local and international markets, and enable good planning.
• Through the use of smart contracts: general and payment terms and conditions can be
recorded and impossible to change, and carried out automatically.
• Because a peer-to-peer network enables direct producer-to-purchaser sales, eliminating
intermediaries and commission fees.

(smartphones are provided via partnerships with

EXAMPLES: telecommunications companies); a service bundle
> BEXT360: FOR A MORE FAIR which provides a better vision of market conditions
REMUNERATION OF COFFEE GROWERS and allows users to improve product distribution;
secure digital identity management and a value
Bext360 has decided to use blockchain technology 'safe' which allows small-scale farmers access to
to improve the lives of coffee growers. The company the world of banking services, micro-payments,
has developed an artificially intelligent and vision- and loans.
equipped robot to sort coffee beans into three
categories – A, B and C grade. Ratings are reported
to purchasers and farmers, who can negotiate
> AGRIDIGITAL: INTEGRATED
fair prices using the bext360 phone app. The app
MANAGEMENT IN THE GRAIN INDUSTRY
and software are cloud-based and use Stellar.org The Australian firm Fullprofile is testing the use of
blockchain technology to create a record of where Ethereum blockchain for AgriDigital, an integrated
the beans come from and who paid how much for platform for the grain industry which brings
them. Processing plants, distributors, wholesalers together producers, buyers and agents managing
and other stakeholders along the supply chain can contracts, invoices and payments. The solution
use the platform's traceability feature. In the long uses smart contracts to ensure that sellers are
term, this will enable customers to know the origin paid immediately upon delivery to the buyer. After
of a product and how it was made. the transaction is approved, payment is made by
traditional methods (e.g. an automatic payment
> AGRILEDGER: HELPING SMALL-SCALE order via a bank), thus eliminating the need for
FARMERS AND THEIR COOPERATIVES cryptocurrency.
AgriLedger is a philanthropic initiative that uses
blockchain technology to create a 'framework of
trust' for cooperatives and small-scale farmers.
The company offers: a mobile app, connected
to a blockchain, which records transactions

27
OTHER EXAMPLES IN AGRICULTURE…

> Ensuring ownership of farm land:

// In Africa, 90% of rural areas are not listed on a land register, which is a real barrier to economic
development: it is hard to run a company when one does not even have an address to receive supplies.
Bitland, a start-up in Ghana, is trying to solve this problem by creating a record of real estate transactions
using blockchain. Similarly, in 2015, the Honduran government registered its entire land registry on a
blockchain with help from Epigraph and Factom to resolve frequent problems with fraud: certain people
were entering databases and attributing themselves land ownership.

> Crowdfunding insurance:

// Crowdfunding, where a community co-finances a project, is developing in agriculture. Two examples
are Miimosa and Blue Bees. Blockchain can extend (or transform?) this trend by offering a secure
solution for transferring funds directly to an entrepreneur using cryptocurrency.
Blockchain is receiving a lot of attention in the press for its potential in venture fund raising. A term has
been designated for the concept: Initial Coin Offering (ICO). Digital assets ('tokens') are issued by the
company behind the ICO, and are sold to project backers in exchange for cryptocurrency. The tokens
represent rights to use the company's future services. They can be re-sold, but their value depends on
the value attributed to the service or product (i.e. based on speculation).

> And more indirectly:

// Pur Projet uses blockchain to support agroforestry projects in developing countries. In one
project, Nespresso has committed to planting 10 million trees according to an agroforestry
model, in partnership with Nespresso coffee growers in Colombia, Guatemala, and Ethiopia.
Agroforestry is seen as a way towards a more sustainable production model for local populations.
In exchange, the evidence of a company's commitment, equal to a carbon offset, is certified
and the company can include this in its value chain. "Thanks to blockchain [...] all of a company's
commitments to ecosystems can now be certified and recorded in a transparent, decentralised,
and tamper-proof manner — without a financial intermediary, and therefore at a reduced cost",
explains Tristan Lecomte, co-founder of Pur Projet and the International Platform for Insetting (IPI). (47)

Summary:
• The use of blockchain for traceability and supply chain management is one of the most promising
– and probably best explored – uses so far.

• Blockchain is a promising concept in agriculture, particularly for its potential to deliver peer-to-
peer solutions to small-scale producers.

• A wide range of applications are possible in agriculture, from traceability and payments for produced
foodstuffs, to the piloting of smart farms. Others remain to be invented.

28
 PART III:
Evaluating
As we have seen, distributed ledger technology holds a great deal of promise, in agriculture and
elsewhere. However, several steps remain in making these promises a reality: most of the examples
described are still at the PoC stage and it is sometimes difficult to obtain feedback from those who
implement the solution.

In an October 2017 conference paper entitled

("Blockchain in Logistics and Supply Chain:
Trick or Treat?") (48), researchers Niels Hackius and
Moritz Petersen share the results of a study conducted
on social media between April and June 2017 to gain
insight into blockchain use in logistics chains and identify
likely obstacles to the adoption of the technology. One
hundred fifty-two participants answered the following
question: "What are likely barriers for blockchain
adoption in the logistics industry?"

What are Regulatory uncertainty

likely barriers Different parties have to join forces

for adopting Lack of technological maturity

blockchain Lack of acceptance by industry

technology in Data security concerns

the logistics Benefits are not clear
industry? Dependence on blockchain operators

Even if these results are specific to the logistics industry, they raise the following issues:

"Benefits are not clear"

> The blockchain is heralded as a revolution, but is it all it is chalked up to be? We know that a
technology must prove it can satisfy a given set of needs before it is accepted. When is it suitable?
"Data security concerns"
> The main selling point of the blockchain is its ability to build trust, particularly in relation to security.
Is this trust warranted? Are there security risks?
"Lack of technological maturity"
> Can blockchain technology be used today? Is it mature enough? If not, why?
"Regulatory uncertainty"
> Blockchains – public blockchains in particular – represent a complete paradigm shift in terms of
governance and the way transactions are carried out. However companies must show they adhere to
a legal framework to convince people that their project is sustainable. How are legal aspects currently
addressed in blockchain technology?

29
 1 I Is blockchain technology all it is chalked up to be?

NO, of course not: as with any technology, there are pros and cons which must be understood in
order to avoid disappointment. In particular, there are cases where blockchain technology is simply
not relevant.

Gidéon Greensplan addressed this topic in 2015 in an article published on the site Multichain (49). In it,
he stated that to generate a blockchain, it was first necessary to determine whether a shared database
was useful; whether there were, in fact, among different contributors some who had trust issues;
whether it was really necessary to do without a trusted third party, and whether enough was known
about those entrusted with approval roles. These ideas were echoed in a 2017 article by Karl Wüst and
Arthur Gervais, in which they propose a method for identifying cases where the use of blockchain
makes sense (see figure below).

Y Y N N
E E Can you use an O O Permissionless
Do you need to Are all writers
S Are there multiple S always online
store a state? writers? known? Blockchain
trusted third party?

Public
Are all writers
Permissioned
trusted?
Y Blockchain
E
S

N N YYE Y
Y Is public Private
E
O O ES E
S Permissioned
verifiability N
S S Blockchain
required? O

The Blockchain is
not the solution

It is important, then, to view blockchain in relation to a set of needs and not expect more than it can
deliver.
"Blockchain alone can't do it all," explained Alexandre Stachtchenko, a co-founder of Blockchain
France, in an article published in Usine Nouvelle magazine (28). "The blockchain manages digital assets
wonderfully; when you throw physical elements into the mix, you need QR codes, connected
objects, and sensors. The blockchain is simply an architecture that acts as a catalyst for all these
technologies".

In light of this, let us examine what the blockchain makes possible and what it does not. In theory,
information is tamper-proof once it is consigned to the chain. However, if consigned data were incorrect
when entered, the information will remain incorrect forever (another transaction will eventually be
needed to correct it).

30
This raises the question of the disappearance of the trusted authority, highlighted as being one
advantage of this technology. As seen above, especially in the case of traceability, it is still necessary to
make sure that information added to the blockchain is consistent with reality and that data leaving the
blockchain will not be corrupted. The need for a third party, or "trusted authority" therefore moves
to the periphery of the system. (3)
Smart contracts pose a special problem when it comes to this issue of peripheral trust: they require
input data to automatically trigger actions based on pre-determined conditions. This data comes from
real or virtual sources outside the blockchain (databases, connected objects, etc.).
However a blockchain is "blind" to the outside world by design (50). It cannot rely on outside services
to recover data; if it did, the request would be included in the transaction and re-initiated every time
the blockchain is replicated. The data must be 'injected' into the blockchain, and its integrity ensured
beforehand.

To resolve this problem, blockchains are integrating a new component, similar to a trusted
authority: an Oracle (this term originated with Ethereum).

Oracles are "agents" tasked with connecting the chain to the real world to allow secure, reliable data
to be added to the blockchain. These agents can be physical trusted authorities, as before; in this
case, however, the issue of whether the technology is useful arises. Oracles can also be applications
that check whether data is compliant with its source (Oraclize offers this type of solution). A peer-to-
peer network can approve data by consensus (platforms like Augur offers these types of services).
Connected objects can also carry out this task; in this case the objects themselves are connected to
solutions that transmit or receive secure data.

Summary:
• A blockchain should be implemented as a solution to specific problems. It is not a miracle
solution.

• The blockchain only ensures data integrity and security from the moment it is written into
the blockchain. Erroneous data can be written into the chain, and data can be tampered with
when it exits said chain. The notion of trusted authority can arise with the chain's periphery.

• A new type of trusted agent is needed to connect the chain to the 'real' world: the oracle.

31
2 I Is blockchain technology 100% trustworthy?

NO. It increases trust compared with other systems but there is no such thing as 'zero risk'.
A paper by Igor Kabashkin, published for the "Network and System Security 11th International
Conference" held in Helsinki in August 2017 (51), lists the different risks that may arise, including:
> Private key loss: private keys are personal and allow owners to send and receive transactions. If it is
lost or stolen, there is no way for the transaction to be recovered.
> Loss of anonymity (or pseudonymity): the system itself is not as anonymous as promised. The same
user can carry out bulk transactions with public keys connected to one another. If their real identity is
unveiled, all of the dealings can be traced.
> Program glitches: by definition, the data recorded in a blockchain cannot be altered. However, all
this is performed by algorithms. If there is a glitch in the program (in a smart contract, for example),
both the glitch and its outcome are 'sealed' in the chain and a security breach could be exploited. The
"TheDAO" hack is a well-known example of this: a glitch in the code made it possible for one network
member to steal 50 million dollars.
If the glitch is in the blockchain, the protocol must be updated, which may create chronological
discrepancies (i.e. a risk of creating a second 'fork' in the chain). If the source of the problem is a smart
contract, a second program is needed to correct the first, which itself cannot be modified. In this
sense, a blockchain is considered as being adverse to change.
> Sustainability of cryptographic algorithms. The blockchain is secured by these algorithms. If a new
process capable of attacking them were developed, the entire system would collapse. Currently, no
malfunction of this kind has been found.
> A takeover of the blockchain: blockchains are built on protocols which are highly resistant to
attacks – consensus protocols in particular. However, if nodes were to take over more than 50% of
the computing power (in the case of a PoW), or collude to approve blocks, they can take control of
the chain by creating the longest one possible (as seen above, one rule in Bitcoin, for example, is that
if two competing branches are created, the longest one becomes the valid one). Control measures
must be put in place to prevent such attacks.
> Blockchain neglect: "maintenance" of the blockchain depends on the good will of its participants
(i.e. nodes). If they decide to no longer work on the blockchain, it dies.

According to Primavera de Philippi, a researcher at CERSA interviewed by Blockchain France in

the wake of the "TheDAO" affair: "There is no truly "trustless" system, in which the issue of trust is
completely eliminated. While the concept can work as a rhetorical tool, the ideal of a perfectly
trustless technology is just that: an ideal" (20 July 2016)

Summary:
• The blockchain is secured at different levels: through the use of cryptography, through duplication
by network nodes, through the implementation of approval protocols, etc. As such, it is a technology
that inspires trust where security is concerned, more so than other technologies.

• As with any system, however, security breaches can always be found. Some have already caused
malfunctions. Others remain hypothetical.

• The first to be implemented show that trust cannot be completely handed over to technology: it
remains an ideal.

32
3 I Is blockchain technology mature?

NO if you believe the

Gartner group:
Every year, the group publishes
the "Hype Cycle", which
positions various emerging
technologies on a curve and
describes 5 phases in their
adoption: the "innovation
trigger", the "peak of inflated
expectations" (buzz in the
press, appearance of multiple
start-ups), the "trough of
disillusionment" (criticism in
the press, failure of initial trials),
the "slope of enlightenment"
(identification of real
interests), and the "plateau of
productivity" (the technology
is mature). These 5 phases
can occur over several years
because of technologies
reaching maturity at different
times.

The 2017 curve placed blockchain as still being in the "peak of inflated expectations" phase and nearly
entering the "disillusionment phase". The report also indicated that the blockchain would arrive at
maturity in five years or more...

This is also the analysis of Christine Hennebert, a researcher at CEA LETI in Grenoble who studies the
security of Internet of Things protocols and the implementation of security functions in connected objects.
Ms Hennebert was interviewed for this study:
"There is a lot in the press about blockchains, but in the vast majority of cases, there is little behind
this buzz. This technology is in its early stages and at the experimental phase. I think it has enormous
potential, but it needs to prove its effectiveness via initial projects and feedback.
Much needs to be done. I think some (robust) solutions will be ready for the public in four years' time,
but probably not before”.
C. Hennebert, September 2017

What are the main problems which prevent the technology from reaching a sufficient stage of maturity
today?
Problems are essentially linked to the "scaling up" phase (the transition to real use from the
experimental phase). Limitations, primarily technical, are particularly observed in public blockchains
(like cryptocurrency), and involve:
> the size of the blockchain and its ability to support growth in the number of users: according to statistics,
available at https://blockchain.info/fr/, the size of the Bitcoin chain increased 58% in a year and reached
137,000 MB in October 2017. Given that the number of users is currently still very limited and that the
computing power required for mining increases considerably with the size of the chain, the system is
viewed as not being easily "scalable". Energy costs are also criticized (in early 2017, the cost of powering the
PoW was estimated to be 3.8 billion kWh per year, according to Bitcoin.fr).

33
> The volume of transactions: currently, Ethereum and Bitcoin handle, respectively, 25 and 7 transactions
per second, while VISA handles 20,000 transactions in the same amount of time. This is due to the time
taken by mining: as mentioned earlier, around 10 minutes pass between the addition of two new blocks in
a Bitcoin chain.
> Storage capacity: a blockchain is not a database in the traditional sense. Its data storage capacities are
limited: a blockchain is designed to store the fingerprint of data – the proof of its existence – rather than the
data itself. As discussed in the paragraph on oracle systems, this therefore involves maintaining an additional
infrastructure.
> Interoperability between blockchain and other systems is also a point to be monitored. According to
Nicolas Pauvre, Project Manager at GS1 France, interviewed for this study, the blockchain does not eliminate
the problem of standards, structuring, and the coding of transactions. "The short-term challenge is to ensure
interoperability with existing systems on which the blockchain is an additional layer. Different blockchains
must also be able to work together".

Solutions to these different problems are being developed, but still require serious testing. For example:
> Concerning scaling up and the fluidity of transactions, possible improvements are under study in the main
blockchains in operation (gradual improvements to protocols, increasing the size of blocks, etc.).
In the case of the internet of objects, the decentralisation and system availability offered by blockchain appear
to offer a plus compared to other systems. A project manager at Atos interviewed for this study explained
that "Blockchains are interesting for IoT because they remove the need for single units of certification, which
creates conflict given the volume of exchanges with connected objects".
> Concerning energy costs, the issue arises differently depending on the blockchain (public or private,
for example) and the systems for approving blocks, which differ significantly. However, the CEA-LETI in
Grenoble is working on quantifying the energy needed to achieve a given level of security.
> Concerning harmonisation and interoperability problems: GS1 has announced a partnership with IBM and
Microsoft to make progress on establishing interoperability standards. French standards body AFNOR has
also created a standardisation committee on the subject of blockchain, but work has only just begun.

Scaling issues also raise questions about governance. The more chains grow, the more stakeholders they
involve, and the harder it is to see eye to eye. Efforts to improve performance, for example, have divided the
Bitcoin community – and the blockchain as a result – into two camps: some favour gradual improvements
(a "soft fork" consisting of a protocol update, i.e. the "Segwit" camp), and others want a radical update (a
"hard fork, in which block sizes are increased significantly, the "Bitcoin cash" camp).

Summary:
• Blockchain is not a mature technology.

• Technically speaking, uncertainties persist as to its ability to integrate larger numbers of users.
Solutions for interoperability with other information system components are also needed.

• In terms of governance, a balance must be struck: a growing chain means more stakeholders who
need to agree with one another.

34
4 I Will legal uncertainty be a concern?

YES and NO… The legal framework of blockchains

is, indeed, far from complete. On one hand, this could be a good
thing, as too much legislation can curb creativity and innovation.
However, on the other, it could be a significant obstacle to its
FURTHER
adoption. Legal uncertainty implies taking risks A simple oversight READING:
or error of interpretation can lead a party to breach a regulation (and
"Panorama des enjeux juridiques
expose them to fines) and lose credibility by making promises that
de la blockchain", Blockchain
cannot be kept. Partner (52)
Until now, blockchain technology has not violated regulations which apply
to specific sectors (finance, insurance, healthcare, gaming, etc.) in regard to
identity (Know Your Customer rules, for example) or the collection of personal
data.
However, some people defend the idea of "blockchain law", which would
completely revolutionise operating rules in the legal field, as it promises to change
other fields, based on the argument that "a large percentage of the obligations established
on blockchains are incompatible with the requirements of traditional law" (See the Blockchain
France article on the subject:
"Blockchain et Droit : Code is Deeply Law") (53). Blockchains have no borders, for example: the Bitcoin is a
worldwide blockchain. As such, when a problem occurs, which laws apply?
Let's review the main examples of blockchain uses to identify some of the legal issues that exist today:

RECORD KEEPING
Currently, blockchain is not recognized as a legally valid form of proof of the ownership or a transaction
to that effect. As with any other digital medium, there is an obligation to show a judge that a record
is admissible (which amounts to explaining that blockchain guarantees the authenticity and
integrity of data, etc.).
The legal framework is evolving quickly, however, with a focus on financial aspects: In
France, the following changes have been made:
> French official decree no. 2016-520 of 28 April 2016 on saving certificates, Article L223-12, states
that "the issuance and transfer of mini-certificates can also be consigned to a shared electronic
recording system which allows the authentication of these transactions […]".
> French Law no. 2016-1691 of 9 December 2016 ("Sapin II"), on transparency, the fight against
corruption and the modernisation of the economy, allows the French government to chan ge the
legislative framework to facilitate the transfer of certain financial instruments using "blockchain"
technology.
> The French Treasury conducted preliminary consultations prior to drafting a text, (54) and then, from
September to October 2017, consultations on a draft decree on blockchains and financial instruments.
Other issues do remain:
> The burden of certification: while blockchains eliminate the need for certain trusted authorities such
as lawyers or banks, it remains to be seen who will assume responsibility in the event of a malfunction.
A private blockchain poses less of an issue, but in the case of a public blockchain, which by definition
belongs to no one, who will be held accountable in the event of prejudice to a party? Is the system
reliable enough to resolve these issues?
> The right to be forgotten: This issue is central to the unalterable nature of the data recorded on a
blockchain. In principle, once recorded, data cannot be erased or modified, and yet parties other than
the individual concerned have access to this data.

35
 DIGITAL TRANSACTIONS
Questions regarding this issue focus for the most part on the status given to "tokens", the unit of currency
used in a blockchain. A token can be a variety of things: a product, the traceability of which is tracked; a
'reputation' token, a loyalty coupon, a voting right, a cryptocurrency unit, etc. but has no intrinsic value
itself. Its value is derived from how it is used or evaluated, which results in speculation. That raises legal
questions because, if a single, blanket definition is established through regulation, this could lead to
the application of a specific set of regulations (the Monetary and Financial Code, Commercial Code) or
make certain tax law provisions apply (VAT, etc.) In France, for example, tokens are currently
identified as simple movable assets, more by elimination compared with other definitions.
A B
The status of cryptocurrency is attributed differently depending on the country. Most accept
it as a "payment method", at least, but few have attributed a legal value to it.

SMART CONTRACTS
It is important to understand that, contrary to what the term suggests, smart contracts are not actual
contracts. They are sets of computer code that carry out contractual obligations. The same provisions
therefore apply to an agreement between parties; to enter into a contract, they must be aware of
applicable regulation. However the issue of legal security arises. Like any computer code, a smart
contract can be subject to glitches even if, in theory, smart contracts are unalterable. Who is held
responsible if a contract cannot be executed? The developers who created it? However,
knowing who they are may not be possible. The parties to the agreement who have not made
sure that all the clauses in the contract were properly translated into computer code? Not
everyone can read computer code, however. These issues have not been resolved.

Summary:
• The legal framework surrounding blockchain remains unclear.

• Waiting to enact laws allows room for experimentation. Excessively coercive regulation is anathema
to the philosophy behind public Blockchains, which by definition are independent of central
authorities.

• Legal uncertainties create risks for those who launch solutions and those who use them (i.e. an
inability to determine liability, non-recognition of prejudice, non-recognition of the "proof" provided
by the blockchain, etc.).

• The legislative and regulatory framework evolves in tandem with developments and uses. Financial
uses are currently the most frequently observed ones.

36
CONCLUSION
The term blockchain represents many things:

> an innovative combination of pre-existing technologies which enable the distributed and
secure management of a transaction ledger,
> a form of peer-to-peer governance that re-invents the concept of trust without a trusted third
party,
> a structured ecosystem of parties,
> a paradigm shift in a variety of fields

The blockchain disrupts existing frameworks – legal ones in particular – and encourages the
emergence of new and relevant applications to fully achieve the potential that many, in all sectors, see
in this technology.
The agricultural sector is of course directly affected. Blockchains create interesting opportunities, in
terms of traceability, adding value to farmers' work, improving the working conditions of small -scale
farmers, and enhancing the operation of smart farms. One future challenge is to create a chain of
trust on which a farmer can control his or her data. The rapid development of connected objects in
agriculture will necessarily benefit from the advantages offered by blockchain technology and smart
contracts: stand-alone programs that link the digital to the real world.
Several challenges remain, including the need to secure data that exists on the periphery of a blockchain.
Today, however, distributed ledger technology – in its various forms – is still in its early stages, and it
would be unreasonable, in agriculture or elsewhere, to place excessive hope in its potential. A number
of technical, legal, and social issues must still be addressed. It will likely be another five years before
robust examples of blockchain become available.
This summary, intended as an introduction to the subject, is based on an already wide body of literature.
It should be expanded to include more experiments and feedback. A wide range of possibilities exist:
public and private blockchains, the use or not of the tools and services of "major" digital players,
interfacing with existing and future information systems, etc. The return on investment must also be
assessed, but even without clear performance targets, testing is the only way to develop infrastructure
and skills within companies. This is key to adopting a technology which, even when well understood,
remains difficult to implement.
The AgroTIC Business Chair will naturally be monitoring developments until the blockchain reaches
technological maturity.

37
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