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How Blockchain and AgTech Combat Deforestation

  • Post published:January 19, 2023

The destruction of forests is one of the main reasons why the net global temperature is rising so quickly. Forests are an important part of the world’s plants and animals, and deforestation is becoming a clear problem as industrialization and urbanization spread.

With all the talks, policies, and world plans to protect the world’s climate and save the environment, fighting deforestation comes up a lot. We previously posted 3 blockchain use cases that go beyond cryptocurrency, deforestation is another case. 

Blockchain technology has been a part of the global supply chain management and agricultural business revolutions for a long time. But this technology has an even bigger role to play as the world continues to deal with the bad effects of global warming and the need for companies to change how they use natural resources.

Blockchain technology and AgTech can help slow down the rate of deforestation around the world in important ways. Also, companies and businesses are starting to take notice, and more entrepreneurs are using this kind of technology at the core of their operations.

Secure Supply Networks that are Sustainable

AgTech helps stop deforestation by helping to build supply chains that are good for the environment. Using blockchain technology, AgTech can assist business owners and farmers in determining where food comes from and ensuring that it was grown in a sustainable manner. Importantly, AgTech can help make the entire supply chain more sustainable by using tools like sensor networks, drones, and precision planting equipment to improve agriculture.

Farmers can use these tools to learn more about their land and make better decisions about planting, watering, and other parts of farming. This can lead to higher crop yields and lower production costs, which can reduce the need to clear new land for farming and, in the end, make the agriculture sector less harmful to the environment.

Also, as the blockchain technology field gets better, AgTech products are also getting better. AgTech pioneer Dimitra, which is a world leader in integrating blockchain into the agricultural industry, is using artificial intelligence, satellite imaging, and mobile technology to help make supply chain management more sustainable and open.

Additionally, AgTech technologies can facilitate the implementation of sustainable agricultural techniques such as crop rotation, cover cropping, and agroforestry. In turn, these techniques can improve the health of the soil, stop erosion, and make the land more resilient.

This is just one way that Web3 tools can help reduce the demand for products made by cutting down trees and increase the use of products that don’t hurt the environment. Not only that, but AgTech also has solutions for traceability that can help companies show where their products came from and where they are going, which is required by many local laws.

Compliance and Regulation

The European Union wants to be the leader when it comes to rules and regulations that businesses and producers must follow to help stop deforestation. The union’s governing body made rules that require importers to show proof that the goods they bring to the local market are obtained in a way that is sustainable and doesn’t hurt the environment.

With these rules, the EU is making it illegal to trade products that are linked to deforestation all over the world. This helps fight the effects of climate change. Smaller companies will have two years to get used to the new rules, while traders and operators will have 18 months.

Still, all businesses will have to show that their products do not come from land that was cleared of trees after 2020. Operators must show proof from satellites and GPS that the farms where the products come from have not been responsible for deforestation. Operators will also have to check that their production is legal in the producing country.

In this area, too, blockchain technology and AgTech can be very important. As more and more companies use distributed ledgers to improve their supply chains, it has become easier to track all the materials used during production.

Also, Web3 companies are helping to stop trees from being cut down. As an upgrade to its Connected Farmer and Livestock Guru platforms, Dimitra has created a blockchain-based Deforestation Certification Module. This module builds on its tools for managing the supply chain.

Based on data stored on the blockchain, this module looks at deforestation and makes sure that producers, traders, consumer goods companies, and regulators are following the rules.

Pursuing a Brighter Future

AgTech is still a fairly new industry, and only a few agricultural companies have adopted blockchain-based solutions. However, this technology has a lot of potential to make the agricultural industry more sustainable.

Companies like Dimitra are working hard to make AgTech solutions that are easy to use and available to all kinds of businesses, from the smallest farm to the largest agricultural conglomerate.

Climate change is one of the biggest problems that humanity is facing right now, and blockchain-based solutions might be the only way to solve problems like deforestation.