"Smart Contract" allows certain contractual process to be automated using Blockchain technology. Smart contracts enable business to consolidate tasks and automating them to help streamline business operations and boost efficiency. One of the major advantages of Smart contracts is that it removes intermediaries like banks and legal services and enable business to directly perform transactions amongst themselves. Insurance claim is a good illustration on how smart contracts help to streamline the insurance claim by removing human factor in the claim process. The insurance policy can be programmed in the smart contracts to execute according to a predefined set of rules and at the end trigger the claim payment to the insure. Or otherwise reject the claim.
Food fraud is a global issue partly due to globalization of supply chains and an ever-increasing demand for online shops where consumer can purchase food products from anywhere across the globe. This led to reduced supply chain visibility and created an opportunity for counterfeiting and adulteration. Common types of food fraud include substitution, mislabeling, counterfeiting and grey market production.
Some landmark cases in Hong Kong such as the fruit scandal in 2014 by fakes labelling, fake Korean make-up and skincare products of 13,000 pieces were confiscated in 2017 worth around HK$720,000. As a consumer, there is virtually no simple method to genuinely authenticate the products.
There are existing solutions on the market like Hologram, Static QR code, Bubble tag and Nano tags amongst others. However all poses some disadvantage one way or the other such as difficult for consumer to verify; expensive to authenticate and easily replicate.