Nonfungible tokens (NFTs) have traditionally been associated with digital art, profile pictures and other digital collectibles. Capable of preserving uniqueness, these tokens are still popular, but there is another type of NFTs that goes one step further — NFTs. They offer tangible and real-world benefits to holders.
Utility NFTs offer immediate value upon purchase by granting access to certain privileges or exclusive experiences. For example, they can unlock premium content, provide memberships, or allow holders to redeem rewards or items.
The value of the utility NFT most often derives from the value of the real-world item or experience it represents. However, it can also have intrinsic value based on rarity and popularity.
Technically, utility NFTs are no different than regular NFTs — they leverage blockchain technology to ensure uniqueness, ownership and authenticity. The only difference is that they are directly linked to specific items or experiences. They are minted on decentralized networks using smart contract standards explicitly developed for NFTs. Dimitra NFT
Utility NFTs are industry-agnostic, meaning they do not specialize in a specific industry and can transform many sectors and experiences, from gaming and fashion to live concerts and real estate. While it may be surprising, agriculture can also integrate these NFTs for various use cases to bring efficiency and transparency.
NFTs can revolutionize the agricultural industry by providing a more transparent, efficient, and secure way to manage the supply chain. They, like digital crop certificates, can track ownership and authenticity throughout the supply chain, from farm to consumer, and can be used to digitize and manage physical assets relating to crops, livestock, and land. This can enhance transparency, improve efficiency, and unlock new possibilities for financing, trading, and insurance in the agricultural sector.
One area where NFTs can have a huge impact is supply-chain management. NFTs and their underlying blockchain technology can certify the ownership and authenticity of assets, which makes these tokens suitable for the tracking of agricultural products.
An ecosystem can mint NFTs for every stage of the supply chain, from the farm to the store. This would enable stakeholders and end users to verify where a food product came from and how it reached the market’s shelf. Utility NFTs, in this case, can grant stakeholders ownership rights over certain food products. These rights are essential for a more equitable, transparent, and sustainable food system. They empower farmers by granting them ownership of their produce, leading to fairer profits and improved livelihoods. This transparency extends to consumers, who can make informed choices about their food. Moreover, stakeholder ownership incentivizes farmers to produce high-quality food and reduces food waste by enabling direct sales to consumers.
NFTs and blockchains are all about decentralization, transparency, proof of ownership and security. These features come to address several challenges in agriculture, an industry that still uses many old-school methods to grow and distribute food and goods. This reflects on the quality, efficiency and costs of production, eventually affecting the profitability of farmers and other stakeholders.
Thanks to NFTs, stakeholders can create a secure, immutable record on the blockchain, enabling access to real-time data related to the entire supply chain of agricultural products.
This unmatched level of transparency helps prevent fraud, ensures food safety and improves the implementation of sustainability practices. By bringing efficiency to all supply chain stages, NFT implementation can cut costs and have a positive impact on profitability.
The integration of utility NFTs into supply-chain processes. And other use cases can be a win-win for both farmers and consumers.
One example of how NFTs can help the agricultural sector is illustrated by Dimitra, a leading blockchain-based enterprise system for AgTech driving productive, intelligent and inclusive farming. Dimitra helps farmers reduce efforts and improve efficiency by integrating its technology stack, including blockchain, mobile, artificial intelligence (AI), Internet of Things (IoT), drones and satellites.
Dimitra’s utility NFTs offer innovative solutions for the agricultural sector, enabling farmers to secure financing, establish direct consumer connections, and monetize valuable data to make smarter decisions. This approach aims to streamline financing processes, promote transparency and fair pricing, and provide farmers with additional revenue opportunities.
Despite their benefits and potential, farmers and consumers. Should be aware of certain limitations of NFTs and blockchain technology in general.
To begin with, blockchains are closed systems without access to real-world data. Therefore, connecting an on-chain NFT with a physical or digital off-chain asset requires additional effort. This can be achieved with the help of so-called oracles or other conditions embedded into the smart contract itself.
Eventually, stakeholders must ensure that the tokens accurately represent the underlying products, be it crops, livestock or bonds. For example, Dimitra has developed its Land Suitability Oracle that evaluates each farm. Based on its potential to grow a particular crop. Moreover, Dimitra already has an application that assesses farmer performance. The combination of these tools provides a significant capability for agricultural lenders compared to the available tools.
NFTs can be used independently or with other blockchain applications to improve supply-chain management at all stages.
For example, Dimitra is revolutionizing farming with utility NFTs, starting with avocados. The company has recently launched an NFT series in collaboration with One Million Avocados, a Kenya-based startup. These NFTs enable individuals to sponsor avocado trees for $50, providing farmers with essential resources like seedlings and fertilizers as well as digital platform access and sensors. Dimitra is also developing a Crop Certificate program where, through a Web3 interface, investors provide a loan through a regulated crowdfunding process and get premiums repaid from the proceeds of the crop harvest.
This unique approach improves security, combating avocado theft in Africa. Unlike traditional loans, which are challenging for avocado farmers due to the crop’s long maturation period.
As the trees grow, investors share in the rewards. In the second year, an avocado tree may produce one fruit, but by the tenth, it can yield 300 to 400 kg (661–881 lbs), and considering today’s export prices, farmers can earn three times more than the domestic markets. What’s more, they don’t need to pay premiums on loans before generating revenue.
Dimitra’s NFT launch begins with 1,000 avocado trees as a pilot in the fall of 2023, with plans to expand into mangoes, cocoa and other crops. By implementing blockchain and NFTs, Dimitra empowers farmers, investors and philanthropic sponsors in AgTech, demonstrating the transformative potential of this technology in agriculture.
New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize Cityinfo@dimitra.io
Dimitra OMA – Farming technology company Dimitra is working with One Million Avocados (Saving the world, one avocado at a time) to target avocado farmers with a solution and mobile application leveraging IoT data. The sustainability technology company One Million Avocados (OMA) works to improve farmers’ productivity and yields in East Africa. Dimitra makes blockchain-based operating systems for the AgTech industry. The partnership is aimed at boosting farm efficiency, as well as the quality of harvests.
The blockchain-based solution is rolling out first in Kenya, while the companies anticipate the technology could serve at least 50,000 avocado farmers in the wider East African region once fully operational. East African farmers are already engaging with OMA to assist with their agronomy and export market preparations, says Jon Trask, Dimitra’s CEO and founder. The partnership with Dimitra could bolster that effort.
The world’s avocado market is worth more than $10.27 billion annually and is expected to reach $19.9 billion by 2026, according to Statista. In 2020, 2.7 billion pounds of avocadoes were consumed in the U.S. or eight pounds per person according to the USDA. Kenya is a leading producer of the fruits, producing 322.6 thousand metric tons worth in 2020. About 70 percent come from small farmers.
Climate change and deforestation are creating new threats to farmers. With drought, heat, and insects, for example, farm yields suffer, which impacts farmers as well as consumers. So OMA and Dimitra are pooling their solutions to support the East African avocado farmers. Farmers using the technology platform are expected to double crop performance and farm productivity, says Trask. “AgTech solutions are necessary in order for farmers across the world to mitigate the challenges of climate change. The culmination of technologies from Dimitra and OMA is pushing this agenda forward.”
Dimitra’s Connected Farmer software platform captures and manages sensor data for soil conditions and pest and disease prevention. Although Dimitra already has offered the solution globally, it now includes Swahili among the languages offered by the platform, specifically for the new application in East Africa.
The partnership leverages Connected Farmer as well as the blockchain-based traceability system from OMA. The latter of which also helps monitor the carbon footprint of each avocado production unit. By understanding carbon footprint measurements, farmers can then certify their compliance with labels such as organic, fair trade, and carbon neutral.
OMA’s solution also provides traceability of products as they move from the farm to verify the origin and quality of each avocado batch. This helps farmers prevent diversion or fraud related to the sale of products that may not be authentic.
By enabling farmers to ensure the health of the avocado trees prior to harvest. And better certify and manage their products once picked. The goal is also to promote the development of new markets and opportunities for avocado producers.
The solution is rolling out in phases to capture multiple sources of data about the conditions and health of avocado plantations. The early application begins with a data gathering phase. With the solution, farmers can access satellite imagery and. Combined with their observations, begin to build intelligence models with key insights and information for the platform. That data can help farmers gain more analytics and intelligence over time.
In the next phase, IoT technologies will be used extensively to monitor the progress and conditions related to avocado growth, says Trask. For example, precision farming will include wireless sensors that remotely track conditions in the soil and around avocado trees. And then forward that information to the platform where users can monitor the conditions. The software provides them with a way to track yields in real time. As well as to conduct field mapping, based on the data and subsequent crop production, for analytics.
By deploying a network of soil and other environmental sensors. The companies say farmers will be able to track soil moisture or other conditions. As well as pest threats, and use the data to identify or forecast problems, then take preventative steps where necessary.
By taking this pro-active role in plantation conditions monitoring, the technology is aimed at decreasing manual labor. As well as enabling farmers to address problems faster. And to make strategic decisions going forward that could make harvested crops last longer, says Trask.
The technology can also enable farmers to track products even after they are harvested. With sensors used for logistics traceability. Farmers and logistics providers can gain blockchain-based data about conditions and the movement of avocados on their way to stores. The data can help participants in the supply chain to increase efficiency and transparency, as well as provide immutable traceability.
The technology, in the long term, can be used by farmers that produce products beyond avocados. For example, the companies say they will offer the technology for livestock monitoring and management. In this case, IoT-enabled tags or collars will be provided to track real time conditions of livestock, such as their movements and overall health. By tracking whether livestock is healthy and identifying problems early. The solution aims to alleviate manual or repetitious tasks by farmers.
The Connected Farmer solution will be available to farmers via a mobile application that farmers can access on their Android-based phones. The platform then provides the farmers with a variety of functionalities they can select from. Including data analytics through machine learning and AI, for real-time, actionable insights.
Some of the features available on the app include crop management to identify and take preventative steps where necessary, crop storage optimization (leveraging data from wireless sensors tracking temperature and humidity levels in storage areas), and the livestock monitoring.
As the solution is used by farmers across Kenya and East Africa, the machine learning and AI functionality also can help farmers reduce fertilizer and chemical use based on a combination of conditions, measurements, and yield in previous crops.
“We also promote precision farming [by] providing remote sensing, guidance, sensors, yield monitors, and field mapping,” says Trask. His vision is to serve farmers across the globe to make farming more sustainable and productive.
“Every farmer across the world should benefit from data-driven, effective farming technologies regardless of their economic standing,” says Trask,” and our partnership with OMA is evidence of this in action.”
New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize Cityinfo@dimitra.io