{"id":735,"date":"2018-06-14T03:42:37","date_gmt":"2018-06-14T03:42:37","guid":{"rendered":"http:\/\/kusuaks7\/?p=340"},"modified":"2026-03-31T06:10:48","modified_gmt":"2026-03-31T06:10:48","slug":"blockchains-role-in-the-produce-supply-chain-part-five-hybrid-on-chain-off-chain-systems","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/blockchains-role-in-the-produce-supply-chain-part-five-hybrid-on-chain-off-chain-systems\/","title":{"rendered":"Blockchain’s Role in the Produce Supply Chain: Part Five–Hybrid (On-chain + Off-chain) Systems"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tReady to learn Blockchain?\u00a0Browse courses<\/a>\u00a0like\u00a0Blockchain for Finance Professionals<\/a> developed by industry thought leaders and Experfy in Harvard Innovation Lab.<\/em><\/strong>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tPart One<\/a>,\u00a0Part Two<\/a>, Part Three<\/a>, and\u00a0Part Four\u00a0<\/a>of this series covered traceability approaches, data, and capabilities for improving freshness and safety, capabilities that blockchain brings, and which automation belongs in a smart contract vs. being executed off-chain. Here we talk about the importance of affordability, an approach to ensuring that valid data about the produce supply chain is being written to the blockchain, and an example of a hybrid system that combines blockchain and Networked SaaS technologies.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Hybrid Systems Will Prevail<\/strong><\/h2>\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tBlockchain technology alone cannot provide freshness, safety, provenance, and recall capabilities.\nThat requires data and capabilities from outside the blockchain. It seems that the best emerging approach will be a hybrid consisting of 1) a centralized networked SaaS platform providing economical scalability and deep algorithmic and process capabilities, combined with 2) blockchain and smart contracts for transparency and validation. Blockchains are attractive because of their ability to create a shared, trusted single-version-of-the-truth between trading partners. However, a networked SaaS platform can provide a shared, trusted single-version-of-the-truth at a much lower cost.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Affordability is Key to Adoption<\/strong><\/h2>\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tAffordability is essential for wide adoption and without wide adoption, end-to-end traceability cannot be achieved. A blockchain-based system can provide traceability, but only with full participation across the chain. Hence, the financial model (i.e. who pays) is important as it encourages or inhibits broad participation. In past attempts at traceability (such as PTI), the grower pays and yet gets very little actual benefit. A system that distributes costs and benefits more equitably across the chain is more likely to succeed.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Ensuring Validity of Data Being Written on the Blockchain<\/strong><\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tFurthermore, a networked SaaS platform provides a much higher level of confidence in the data written onto a blockchain. Take the case of a smart contract being executed when a pallet of produce is received at the retailer. If this is done with blockchain alone, then the contract might require a sign-off on the shipment by the retailer\u2019s QA person. If we also have a networked SaaS platform with end-to-end temperature tracking and produce temperature profiling capabilities, then the contract can include days-of-remaining freshness in the acceptance criteria. The SaaS platform will have confirmed that the temperature data read from the RFID tag has not been tampered with and is valid because all along in the journey of that pallet (and its tag) the platform has been doing process checks and irregularity detection, greatly reducing the chances there was any cheating or gaming of the system. As a result, the acceptance or rejection decision is made with much more confidence and intelligence about the actual condition of the produce.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Example of An Existing System Providing Hybrid Functionality<\/strong><\/h2>\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tWhen looking at a hybrid networked-SaaS\/blockchain solution, it is clear that the vast majority of the development effort and differentiated intellectual expertise is actually in the networked-SaaS platform. One solution provider, Zest Labs, offers virtually everything required for a hybrid solution, combining the best of networked SaaS and blockchain technologies. Working closely with some of the nation\u2019s largest grocers and growers, Zest has accumulated and created a depth of intellectual property over the past decade+ that includes:\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t