STiR coffee and tea magazine

50 STiR coffee and tea / Issue 2, 2018 (April / May) Transporter Insurer Buyer/Supplier Bank Institutional/Private Investor A Buyer A Supplier B Supplier B Buyer Carrier Transporter Insurer Inspector A B Smart Contract Buyer/Supplier Bank B By John Snell lockchain is the new buzz word; everyone is talking about this panacea for all business ills, and yet the reality is less than promised for this Bitcoin-inspired wizardry. No one is disputing the value of a shared ledger or its ability to deliver comfort where trust is in short supply but blockchain technology alone does not further the cause for the tea supply chain. Blockchain An Enabler for the Tea Industry A Supply Chain Hardwired for Trust To achieve that an additional verifi- cation (V2) is required. The combination of blockchain and a V2 smart contract creates full traceability, transparency, and the potential for conveying gateway cri- teria throughout the commercial passage from bush to cup. This over-simplistic statement needs more than just a pretty infographic to gain the support of jaded tea farmers, producers, and upwards in the chain. Let's see what we can do to bring context to the hype. Firstly, what could we possibly be dissatisfied with? • The inequality (perceived or otherwise) of disbursement of funds from the consumer purse down the supply chain. • The effectiveness of certification programs in protecting the industry and consumer from supporting socially unjust or environmentally untenable production. • The traceability of tea from shelf to source • The transparency of trade • Protecting terroir from downstream market practices • Fulfillment of USDA's food safety requirements for less hassle than it apparently looks like today All of these are possible through a variety of mechanisms but a shared ledger and (V2) contract view enables: • Reliably and securely execute agreed terms between two parties, removing the need for third party centralized system to execute contracts. • Total visibility to all movements of a product • Immutability that ensures historical clarity and openness • The setting up of criteria to be met, within this view, that requires satisfying before further processes can occur • Concurrent view and approval of all participating parties that criteria have been met.

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