Agrarian Economy 2021 Т. 14 № 1-2:59-66

Prospects for deployment of products traceability systems based on the blockchain technology as a form of modernization of management system in the agrarian sector of the economy

Kolodii A., Candidate of Economics, associate professor
Ahres O., Candidate of Economics, associate professor
Kolodii I., PhD student
Lviv National Agrarian University

https://doi.org/10.31734/agrarecon2021.01-02.059

ANNOTATION

In recent years, the blockchain technology has become more and more popular and relevant topic in the world. The main issues on functioning of the blockchain technology and the importance of introducing products traceability systems are investigated. Blockchain is a distributed database, whice involves a constantly increased amount of counterfeiting with appropriate digital data encryption systems. The deployment and use of the blockchain technology secures that the final consumer of any food product can be convinced of the product safety, have information on the place of the product origin, information about the passage of goods through all stages of the expanded reproduction cycle, preventing the forgery of products. For interested persons, in particular stakeholders and regulators, the deployment of this technology will allow finding weaknesses in the logistic processes, to improve funding and quality control system, monitor the highlights on compliance with legislative and certification requirements. Thus, this will improve the work of agricultural producers, as it will exclude false and unnecessary intermediaries from the supply chain and will promote better sales of products. From the investors’ positions, the blockchain technology is also interesting, because it provides transparency of all stages of business processes, as well as a perspective vision of export opportunities for individual participants and the agrarian industry in general. The main attention of the research is paid to the need to use agricultural and other products traceability systems in the supply chain, which should be based on the use of blockchain technology. The tracking of food products, in case of its deployment, will increase the transaction effectiveness, reduce their bureaucratization, and increase the margin of production within the entire supply chain. The importance of the influence of digital transformation processes on the agrarian sector of the economy as an important stage of the new innovative development of our country is emphasized.

KEY WORDS

blockchain, distributed ledger technology, traceability, supply chain management, digital economy

FULL TEXT

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