Non Fungible Tokens Smart Contracts applied to Third Party Certification of Recipe Based Foods
This research investigates the use of blockchain tokens and smart contracts in distributed supply chain applications. A comprehensive view of blockchain technology, smart contracts and token design and mechanisms is presented.. A detailed use case in the field of food traceability is developed. The use of smart contracts and blockchain tokens to implement a consumer trustworthy ingredient certification scheme starting at harvest for agri-foods including commingled, i.e. recipe based, food products is described. The proposed mechanism allows ingredients that carry any desired property (including social or environmental customer perceived value) to be certified by any certification authority, at the moment of harvest or extraction, using a smart contract token. The mechanism involves the transfer of tokens containing the internet unified resource identifier (URI) published at the authority’s website. The URI is transferred from farmer all along the supply chain to the final consumer at each transfer of custody of the ingredient using the Critical Tracking Event (CTE) - Key Data Element (KDE). This allows the end consumer to easily inspect and be assured of the origin of the ingredient by means of a mobile application. A successful code implementation for the mechanism was deployed as a proof of concept, tested and is running on the Ethereum live blockchain as the IGR token (IGRtoken.eth). We conclude that the proposed architecture allows full supply chain visibility to final consumers without detrimental effects to the recipe owner. Additionally, the inherent economic incentives point to strong industrial usage potential of the mechanism. The main contribution of this research is the possibility to ensure the origin of any instance or lot of ingredient within a recipe to the customer, without harming the food processor's legitimate right to avoid disclosure of its recipes and suppliers.