Ant Financial Services Group and Bayer are planning to launch a blockchain-powered agriculture system. It will use the distributed ledger technology to track the agricultural product and the supply chain. Both the companies have signed a letter of intent to deploy the blockchain technology in this sector.

The Ant Financial firm is an affiliate payment company of the Chinese Alibaba Group. The firm will also work with Hyperledger on interoperability, standard, and various blockchain applications. This agreement also involves the digital-farming technologies from Monheim am Rhein, the German firm Bayer, and Hangzhou’s blockchain division. This blockchain deployment intends to improve efficiency, farmer’s income, and the productivity of quality food. Moreover, it will streamline the supply chain process with better transparency and responsiveness.

Earlier in June, Microsoft filed an application suite based on blockchain and Artificial Intelligence (AI) in Brazil. This application dubbed Farmbeat was developed to improve productivity in the agricultural sector. Many countries like the U.S., India, Kenya and New Zealand have already implemented this application suite. It reduced the water consumption rate in the farms to 30%. According to the creator of FarmBeats, scientist Ranveer Chandra, the agricultural sector was lacking the benefits of big data, AI and blockchain, the source states.