When tech gets “cheesy”…

One of the challenges with technology like blockchain lies in bridging the real world with the virtual one. Transactions involving virtual goods or contracts executed in the virtual world can be easily handled on the blockchain, thanks to its promise to permanently record every transaction and trace the origin of information. However, the problem lies in devising a method to track real-world events and physical goods while still utilizing blockchain.

One example hails from Italy, where Parmesan cheese producers have begun utilizing innovative technology to combat counterfeiting and help consumers trace the origins of their food.

For a cheese to earn the title "Parmesan", it must, among other criteria, come from a very specific region in Italy. On the line is not only national pride in the product, but also big money. Given the lucrative nature of this name, there are those who attempt to capitalize on it by producing cheeses that resemble Parmesan, but are not the real deal.

The consortium for the Italian Parmesan cheese industry partnered with p-Chip, which makes microchips smaller than the size of grain of salt. These edible microchips can be attached to an object - in this case, a 90 pound wheel of cheese and quickly uniquely identify the object attached to it, not unlike an RFID tag or barcode. Among the advantages of this chip is that it is impossible (according to the manufacturer) to clone. Another one is that it can, without any issue, survive the entire cheese-aging process. In fact, it can last years, even in extreme temperatures.

While this technology doesn’t have to be necessarily combined with blockchain, it highlights a few shared advantages. For one, data on the blockchain remains unalterable and is readily shareable between parties who might not even trust each other, yet all can easily verify the information. Where could this tech shine? Consider supply chains tracking critical components through multiple manufacturing stages, or food and drug manufacturers looking to ensure their products are safe. Those are just two examples.

Some time ago, I wrote about Walmart using blockchain to automate processes for handling invoices and payments of its 70 third-party freight carriers. When Walmart implemented this solution, disputed invoices dropped from 70% to less than 1%. It’s almost hard to believe! Now imagine another layer for tracking not only the goods, but also the origin and the authenticity of those goods, which could be verified by Walmart and any other independent party.

The recurrent pattern in this? Stories like this always lead to imagining new solutions. When business and technology minds converge, exciting things happen. With innovations like these, we're not just tracking the authenticity of a cheese, we're creating a future where trust is inherent.