Blockchain technology and smart contracts in the agro-industrial complex of Russia

Abstract

Abstract Progressive technologies associated primarily with the use of the latest information systems are developing very quickly and are being introduced in the modern world. Recently, such phenomena as cryptocurrency and the smart contract, functioning thanks to the blockchain technology, have become very popular. The application of this technology is used in many areas: information technology, law, state, and municipal administration, etc. This article discusses the mechanisms of functioning and features of the latest Internet technologies in the context of the agro-industrial complex of Russia. Their practical significance for optimizing the relationship between the seller and the buyer has been investigated. The advantages of the blockchain for all market participants when using technology in the supply of agri-food products are justified. The research shows the possible difficulties and shortcomings of the existing content system, gives recommendations on the use of the blockchain and its evaluation for domestic producers of agricultural products. The authors propose a mechanism for using the blockchain technology in agriculture, which will change the existing practice of trade and settlement transactions between counterparties of the agricultural market.