Building Consumer Trust with Blockchain

A case study for boosting transparency and sustainability in the food supply chain

Consumer tastes are constantly changing, and companies are always trying to keep up. Today, a growing number of consumers are focused on the sustainability and transparency of their purchases, and nowhere is this evolution more prevalent than with the food they eat. Buyers want to know more than just the nutritional facts of the food they consume; they want to know where it comes from, how it was shipped, and if the production process was ethical. For both the food industry and its supply chains, it has become a challenge to serve this growing thirst for detailed information. But, it is also a huge opportunity for brands to differentiate and stay at the forefront of purchasing decisions by providing their consumers access to real-time, verified product information.

How can suppliers do this? Well, the search for the best use or application for blockchain technology (apart from speculation and gambling) has been ongoing for at least 5 years now. We may very well have hit gold with use cases in the supply chain industry, especially for “farm-to-table” tracking.

What does blockchain technology bring to the table?

A blockchain is essentially a very special database. It is not hosted in a single location or under a single entity’s control. Instead, it is stored in many places as a full copy, not just fragments. There is also no single party that could enforce a modification or a ban on the data. The really groundbreaking innovation, however, is the way it stores data. Instead of a growing database file that holds the current state (numbers and values), a blockchain is a continuous sequence of transformations. The current state is derived from aggregating all transformations that have happened. The beauty of this is that this sequential “chain” can grow by adding batches of transformations onto it. These batches are called “blocks.” And because all these blocks are linked with each other by the strongest cryptographic methods known today, it is essentially impossible to just swap one historic block for another. In other words, the chain always keeps its integrity and has an unforgeable timestamp history of precisely when an individual transaction took place.

Automation + Security = Transparency

Because of the inherent nature of blockchain technology, it is perfect for all use cases where you need an unforgeable timestamp. Recording transport data is a perfect example. If you carry freight from Producer A to Logistics Center B and then further to Supermarket C, you can conveniently record the date and time of each pick-up and delivery, as well as the circumstances of each transaction, such as the temperature inside the containers (important for products like fruit, fish, meat, or medical supplies). The metadata of the handover and transport can also be recorded, such as the vehicle type (E-car or gas-guzzling truck), logistics ID Tags, etc.

This might not sound like a groundbreaking solution, as many of these data points are already collected. The differences here are automation and security. Secure sensors record the data in real-time, not just when a human scans or manually enters info, and that data is then timestamped and permanently recorded on a blockchain. This also means that it’s possible to continue writing data while transport is underway, thanks to continuous sensor readings (such as temperature, humidity, geolocation, etc.).

Transparency helps both consumers and producers

This chain can even stretch back before the factory or packing plant, as products typically already have a history themselves before they are picked up from Producer A. Here, it becomes really interesting for the consumer. In the case of foodstuffs like coffee, they can know for a fact it was grown organically and at what elevation, the parameters surrounding the harvest, how it was processed, etc. In the case of apparel, they could see, for example, what farm the wool came from, where the cotton was grown, or where the cloth was eventually made. All this information can be timestamped on blockchain, and once it’s there, it can’t be changed or erased.

But, the integrity of the record is only trustworthy if the data is entered by a trustworthy party. In some cases, data is entered voluntarily for the public to see and verify. This is particularly useful in heavily regulated industries, countries, or places that are regularly audited to ensure the publicly available record is being accurately created. In other words, everyone who voluntarily puts data on-chain obviously acts in good faith; otherwise, they wouldn’t be actively leaving unforgeable evidence of malpractice on a public record.

Removing error and malice from the data

There is also a newer and even more secure method of ensuring that the data entered on the chain is accurate. Using blockchain-secured sensors to automate the data collection and recording process removes the possibility for human error (or manipulation) altogether. Customers can also get real-time information about their purchases. For example, sensors can track the live location of shipments, disclose the humidity and temperature inside the container, or even deliver parameters about the health of fresh produce.

All of this is a big plus for the consumer and the business, supplier, and grower; the possibilities are endless, and the positive impact of such transparency on problematic industries like industrial farming or even fast fashion is quite apparent. This use-case also makes “greenwashing” virtually impossible because customers and investors can put more trust in the sensor-blockchain link. As a result, it boosts the brand experience of companies that use blockchain technology for this purpose and builds consumer trust.

Putting this solution into practice

While the description above sounds highly technical, the actual “how-to” is simple. Time-stamping data on blockchain can be done with generic blockchain API’s such as the CoreLedger TEOS API, the Notardec API, or simply with one of the growing list of dedicated Apps, such as NOTRZR. Depending on your application, it is either some arbitrary data like text entry or structured data (e.g., sensor readings). The critical element is that each such entry has a unique identifier on blockchain and can be retrieved with a blockchain explorer. You effectively need a way to render the data into a nice and readable format, such as a certificate. You can see some examples of what those might look like here.

Then, all you have to do is create a QR code from the URL that points to your product data and put the QR code as a sticker on your product. Consumers can then scan the QR code with their phone, and a new browser window will open, displaying all the desired information. Ideally, this page includes a link to some additional metadata (the technical stuff) and to a blockchain explorer where customers can verify the authenticity of the data, should they want to dig deeper. It’s a simple, elegant, and secure way to build customer confidence and promote better business practices like sustainability and transparency.

Learn more about our solution to boost customer confidence on our site.

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology. From issuing a simple token to enterprise-grade token economy solutions, we have all the tools and components you need to quickly and affordably integrate blockchain into your business, whether you’re a new startup or a big multinational enterprise.

Interested in our results-focused, real-world approach? Visit our website for more information, or contact us directly to discuss your project.