Ambrosus – Disrupting the Global Food Supply Chain

August 2017
By Sam
Posted: Updated:

Ambrosus Summary

Ambrosus wants to use blockchain technology to record every step of the global supply chain, from “farm to fork.” The system will be used in conjunction with existing systems, with Ambrosus Company acting as a “fourth party logistics network.” This means that they will optimize existing distribution channels between distributors, retailers and third party logistics firms.

The Ambrosus system has huge potential application, covering areas such as food safety and contamination, food origins and tracing, logistics sustainable improvement, a loyalty system for customers, reputation system for farmers/producers, food delivery without the middleman, a decentralized insurance fund (DIF) and a farmer’s fund. The operational capabilities of Ambosus are far reaching, with the possibility for custom DApps and other architecture to be built on their system.

At its core, Ambrosus is focused on quality assurance which, as they say:

  • Allows complete and rapid digital transformation of quality parameters about food and its extenal environment into a format compatible with the Ethereum blockchain.

  • Builds a robust detection system based on sensor networks to generate data and compliance certificates and store them on the blockchain.

  • Permits automatization of transactions between different stakeholders in the supply chain through smart contracts, allowing automatic management of quality control and supply chain processes.

To validate these concepts, the Ambrosus platform will preform the following tasks:

  1. To record sensor data from foodstuffs throughout the entire supply chain.

  2. To ensure compliance of the food’s state to regulations and client requirements.

  3. To create of a Peer-2-Peer marketplace for quality-assured food.

  4. To enable aggregation of purchases and delivery.

  5. To integrate within existing payment and inventory systems.

Ambrosus - 2

As food moves along the supply chain, the Ambrosus blockchain records every step, including the sensor data from the machines which analyze the food to the integrated chips in the food and packaging.

One of Ambrosus’ primary goals will be to incorporate new hardware technology into food quality assessment and then digitizing the information gathered and recording it on the blockchain. New Internet of Things’ (IoT) hardware, such as packaging embedded biosensors, can provide a wealth of data. This, paired with the blockchain, creates innovative, dirusative monitoring systems to further streamline our existing food chain supply. Below is an example they give:

As an example, let’s say we want to authenticate the origin of a fish from the North Atlantic. Today, tissue of the fish would be sent to the lab for analysis, using laboratory methods such as Raman spectroscopy. The first step to implement our solution would be to use an on-site Raman system, derived from the laboratory system and deployed at the factory entry, for example. The fish would be analysed and the data immediately recorded onto Blockchain to assure system integrity. But we could go further and see the problematic through the lens of digitalization. With the deployment of IoT sensors, we could really change the perspective and consider the fish as a digital asset. In our example, a CCD camera can record the arrival of the fish on the boat. The fish items are then poured into containers that can be sealed, with sensors checking their integrity, and traced through RFID technology. Recording the localisation of the container, of the boat and of additional sensors such as CCD camera output and sealed integrity, in real time onto Blockchain, would assure the origin of the digital asset. Here, the digital asset is linked to the fish inside the container, consequently assuring the origin of the fish as well.

It’s pretty incredible to see their outlook and use cases. Many of the ICO’s and coins I’ve looked have don’t have real world applicability. Ambrosus breaks the mold here by turning real world items into digital assets. Every single piece of food will be capable of being analyzed using their system, not just batches.

An issue though for manufactures would be to incorporate this new IoT tech into their packaging, which could be an expensive measure. It’s not said how much the new tech is said to increase prices, I’m sure this is a case by case basis issue, however, food items are already at thin margins. However, the digital record would hopefully allow companies to optimize their systems and reduce costs enough to pay for the new sensors.

So what is the coin for then? It serves three functions. First it is the digital “reflection” of the product it is tracking, carrying all information and sensor data about it. Second, it serves as incentive for early adopters to use the coin and developers to create DApps. Third, it gives access to the platform.

The coin can be used by producers, suppliers, retailers, restaurants, logistics companies and an other consumer to interact and use the platform. Developers will also be able to create applications which interface between any of the parties (consumer-retailer, retailer-producer, etc.)

The reason that Ambrosus has so much potential is because of its corporate applications. Just how Ripple’s technology could be eventually by every bank in the world to handle transactions, so to could Ambrosus’ tech be used by companies like Walmart, Aldi, or any other major food supplier. The benefits from this data collection and retention system are boundless. Every detail of production delivery, display and sales will be available to be analyzed in countless ways. Companies are always trying to find ways to shave a few cents off or save time, as when dealing with economies of scale, a small change could save millions.

Ambrosus’ team is impressive to say the least. Check out the full list at their website and make sure to subscribe to their project. If they can pull this off I can imagine this company being an essential part of the 21st century. Please read the white paper, I’ve gone over the basics here, but they have a lot more information about what and how their application could be used in the future. It is a great read.

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