Moroz T., Ph.D. (Economics), Associate Professor of Information Technologies Department, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

ORCID ID: 0000-0002-5445-0571
e-mail: moroz@mnau.edu.ua

Prospects for the Use of Blockchain Technology in the Agricultural Sector of the Economy

Abstract. Introduction. Recently, blockchain technology has been used in various sectors of the economy. Mainly, it is actively implemented in the financial sector of the state. But, now more and more we are talking about its use in the agro-industrial complex. Agriculture provides over 14% of Ukraine’s GDP, making it one of the most important industries in the world. The agricultural sector brings every third dollar that Ukraine receives. Since a huge number of jobs depend on the sustainable success of Ukraine’s agro-industrial complex, big stakes are placed on ensuring that agriculture remains a viable and competitive market for all. Negotiating changes in international trade policy and supporting affordable labor on the extent of potential border strengthening present two new challenges for agriculture in the future. However, older, more persistent threats to the agribusiness sector are also present, as they involve decisions about what technology should be used and when it is appropriate to invest in innovation.

Purpose. The main purpose of the article is to systematize the tasks and opportunities of blockchain to strengthen the potential of the agro-industrial complex of Ukraine and promote the attraction of additional investments.

Results. Blockchain is one of the technologies most promising for ensuring greater coherence in broad areas of the agricultural industry. Whether it is used to manage warehouses or supply chains, it is more reasonable to use in the field as a tool to transmit real-time data on crops and livestock.

Conclusions. The use of technology makes it possible to improve the agricultural sector through: optimization of the food supply chain (reducing the time of tracking the origin of food to seconds, ensuring safety and improving efficiency); crop insurance (reports cargo, geographical points, basic information on compliance with carriers, registers the quality of the product, its price, location and parties involved); transaction (helps farmers sell goods at fair prices and reduces transaction fees, thereby helping small farmers enter the market); traceability (smart contracts insure a farmer’s crop and claim damages, thereby replacing old and burdensome insurance processes that can take months).

Keywords: agricultural sector; agricultural products; decentralization; blockchain; cryptography; key; hash; block.

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