Kyrgyzstan Considering Blockchain Use in Agri-Industrial Sector

Kyrgyzstan Considering Blockchain Use in Agri-Industrial Sector

The agriculture ministry of Kyrgyzstan hosted on Thursday a presentation dedicated to blockchain, with the participants discussing the use of the distributed ledger technology (DLT) in the agricultural sector, according to an announcement on the ministry’s official website.

“The Ministry of Agriculture, Food Industry and Melioration of the Kyrgyz Republic is carrying out a number of projects in the field of food safety. Today, there is a need to create a national food safety system…that would employ blockchain technology,” Maksatbek Tashbolotov, the state secretary of the ministry, said during his speech.

Central Asia International representative Sun Xiaodong noted that the use of distributed databases in a blockchain system streamlines processes such as reporting or agreement, which eventually benefits all the parties involved. Central Asia International is the initiator and technical director for the implementation of blockchain technology for large and small cattle.

Up until now, the agreement process has required detailed reconciliation of paper documents from different sources. However, blockchain will allow the parties to negotiate the terms of the transaction as the agreement is being signed, thus reducing the number of required reporting sources.

This kind of data exchange system makes it possible to structure supply chain operations by easily connecting carriers, buyers, warehouse operators, and other parties. This is especially important for food products with a short shelf life. Several trials have already proved that the implementation of blockchain in the agri-industrial sector can help farmers overcome many challenges. The system simplifies the sale of products and cuts the number of intermediaries in the chain.

To achieve a satisfactory result, the same blockchain network must include all the supply chain participants. Thus, farmers, merchants, banks, ports, logistics providers, and all other parties involved have to use a single blockchain-related interface.

In April this year, a report produced by Geneva-based law firm John Tiner & Partners said that Kyrgyzstan had a cryptocurrency and blockchain-friendly legal system that encouraged the development of DLT projects.

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